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Posts by jason_kraft

Add up your costs for the sheet cake (ingredients, labor, and allocated overhead) to give you a floor, then look into market value for sheet cakes in your area to figure out how much markup you can add. It may be possible that in your area $1/serving can be profitable, or you may have businesses who don't know how to price properly. Check out the Pricing Formula link in my signature below for more info.
In most cases it will depend on how much the LLC costs. In California it's minimum $800/year so you need to have significant income and/or higher than normal liability risk to make it worthwhile. If it's only a one-time fee of a couple hundred bucks the LLC is probably worth it.
Actually I am on vacation, we are spending the week in Cabo San Lucas with my wife's family.To the OP, check out the Starting a Business and Pricing Formula links in my signature below for some more information about what's involved in starting a business and how to set prices.
Check out the Starting a Business link in my signature below for a high-level overview of what is required to start a business. Note that relieving stress and operating a successful bakery business are usually mutually exclusive.
Got it, when you said you run everything online I thought you were talking about an e-commerce transaction through an online shopping cart (which would be 2.75% without having to see the card in person).
The first thing I would do is take a step back and put together a business plan based on the costs and overhead (including labor) involved in running this shop vs. estimated revenues based on average customer traffic, your planned marketing strategy, and market value for the goods your are selling. If the numbers don't make sense, don't be afraid to renegotiate or pass. Who was the previous tenant? Why did they leave? Who will be paying for the commercial kitchen? A new...
Square is still 2.75% for online sales, the higher rate only kicks in if you manually enter the credit card number. It's the same rate for Amex and Discover as well.
Square also charges 2.75% for swipe and online transactions. Manually entered transactions are 3.5% + 15c due to higher fraud potential.
I haven't had any problems myself (since I limit my use of PayPal and be sure to keep a zero balance with no links to bank accounts) but I've heard several stories where PayPal customers have had their entire accounts frozen due to a single customer dispute. Since PayPal is not a real bank they don't have to follow the same rules banks do.Accepting PayPal also gives customers two options for disputing a payment: they can dispute directly with PayPal, and if that doesn't...
There was a settlement earlier in the year allowing surcharges. It looks like there are still several states that ban the surcharges though.'s easy enough to get around this by just increasing your prices across the board to cover credit card fees, and offering customers a cash discount. Or just pocketing the extra profit from cash customers.
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