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Small Town Pricing

post #1 of 63
Thread Starter 

Hello!  Last time I asked a question here, GA was in the beginning stages of hoping for a Cottage Food Law.  Well, its happened and I am now a fully licensed home baker in a small town in GA.  I am not from this area, I'm a big bad northerner lol, and I am starting to see a bit of prejudice.  I have recently posted my prices on my FB page and while I have had inquiries, only 3 or 4 orders have actually been placed.  I have always had to fight against the wave of aunts, grandma's, sisters, and so on that bake "the best cakes ever" that everyone seems to flock to here.  Now it seems to be getting a little more personal.  We have pages on FB where locals can search for items, ask where to get certain items, and businesses can promote themselves.  Since I am not the best at self-promoting, those pages are great for me.  More times than not, if someone posts looking for a cake, I will answer enthusiastically that I can do it with a link to my page.  Soon after, there are 5 more stating they can do and do it cheap because "they aren't looking to get rich, just put a smile on someone's face".  Through my own research, I am the only home baker with posted prices on their business pages.  I am beginning to get really discouraged.  I have also started with wedding cakes.  What a nightmare!  People want me to practically give them away.  I have actually had inquiries on the Curious George cake where people thought it would be in the $35 - $50 range icon_eek.gif I am starting a business with a 5 year plan to own a shop so I need to make money.  Not intending to over price or take advantage but succeed.

 

I tell myself to keep on and not let it bother me but its getting harder.  Those of you in the small towns, any tips for keeping my head up and striving on???

post #2 of 63
I just wrote an article on this topic, click the "Pricing, Market Value, and Economic Damage" link in my signature to read it. It sounds like you will need to put together a new marketing strategy aimed at a different target market.
post #3 of 63
Thread Starter 

Thank you Jason!  I will start reading!

post #4 of 63

Ok, get OFF of those pages immediately. I know exactly what that is, it's a FB version of Craigslist, and you don't want to be associated with that. There's one in my town and it's rampant with cheap cakes. And boy do they let you know they're cheap.

 

Focus on your website, network with vendors, make sure you're high in Google placement, and whatever Jason says too. Good luck! It's tough!

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post #5 of 63

Hopefully, permanent damage hasn't already happened and you can squeeze in and gain a footing.

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post #6 of 63
Quote:
Originally Posted by AZCouture View Post

Ok, get OFF of those pages immediately.

Not before forwarding the address to your local health dept so they can make sure everyone is complying with the CFL restrictions.
post #7 of 63
Quote:
Originally Posted by jason_kraft View Post

Not before forwarding the address to your local health dept so they can make sure everyone is complying with the CFL restrictions.

To comply with CFL, do you need a business license or anything else as well? I know the labeling requirement and the non-perishable ingredients only...
post #8 of 63
Quote:
Originally Posted by jiya11 View Post

To comply with CFL, do you need a business license or anything else as well? I know the labeling requirement and the non-perishable ingredients only...

GA also has a $100 annual license fee.

http://agr.georgia.gov/Data/Sites/1/media/ag_consumerprotection/cottage_food/files/cottagefoodregulations.pdf
post #9 of 63
Quote:
Originally Posted by jason_kraft View Post


Not before forwarding the address to your local health dept so they can make sure everyone is complying with the CFL restrictions.

I have considered doing this. I know for a fact that some of those cakers are not legal. I jumped through the hoops (which pretty much only took time, hardly any money). I've been seeing the pages for local 'business', or whatever they call it. I cringe when my SIL recommends me on those threads.

post #10 of 63
Quote:
Originally Posted by jason_kraft View Post

GA also has a $100 annual license fee.

http://agr.georgia.gov/Data/Sites/1/media/ag_consumerprotection/cottage_food/files/cottagefoodregulations.pdf


Thanks Jason! Do you know if the state of Florida has any other requirements besides the business license ( or occupational license as I read elsewhere)? Forming an LLC and Insurance is not required but recommended?
post #11 of 63
Quote:
Originally Posted by jiya11 View Post

Thanks Jason! Do you know if the state of Florida has any other requirements besides the business license ( or occupational license as I read elsewhere)? Forming an LLC and Insurance is not required but recommended?

Here is the relevant info for FL. LLCs or insurance are typically not required but at the very least insurance is a must.
http://www.freshfromflorida.com/fs/
post #12 of 63
Quote:
Originally Posted by AZCouture View Post

Ok, get OFF of those pages immediately. I know exactly what that is, it's a FB version of Craigslist

I've never heard of these kind of pages. I'd like to know if there's a page on my area..........what do you look up?

post #13 of 63
Pages with names like 'stuff to sell/buy/trade or free in [area code]'
There are like four in my area alone on Facebook.
post #14 of 63

Oh ladies, I'll pm you the ones from my town and give you instructions on how to check it daily for lots of jaw dropping horrifying examples of what not to do when selling cakes.

 

And what Pam said, exactly that. Pages where people post used lawnmowers, breast pumps and free baby clothes. Then there's a smattering of the usual backyard mechanics, teenage babysitters, and unfortunately cheap cakes. Since the majority of the items for sale are super cheap (and of course, it's all used, it should be), people seeking cake on there expect them for cheap as well. I try to get this thru to some cake buds here, and most of them get it, some don't. People trolling a garage sale site for bargains aren't going to all of a sudden appreciate a high dollar custom cake maker. But there are plenty of people on there that do cater to people, and they have researched pricing about as far to figure that if it costs them $10 to make, then receiving $20 in payment is a mighty fine profit margin indeed. Oh...don't get me started. 

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post #15 of 63

Anyways, this blog post I wrote awhile back sums it up pretty well. And yes, I got some hate mail. icon_biggrin.gificon_twisted.gif

 

 

http://www.yumacouturecakes.org/2012/06/how-to-not-get-taken-seriously-everi-am.html

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