Competition For My New Shop-U Tell Me...

Business By CakesbyM_LC Updated 20 Aug 2007 , 10:55pm by elvisb

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CakesbyM_LC Posted 20 Aug 2007 , 6:57pm
post #1 of 14

Okay...my mom and I want to open a retail cake shop...We were very excited to do this...then we found out there was a gal doing cakes out of flower shop in the plaza we wanted to go into...she is good, but the only one in town doing cakes anywhere near the type we do. Also, she only does special events, we plan on having a place where you can get a cake at the drop of a hat, that is unique. You know, like office parties, birthdays, thank yous, etc...we will be working with high volume and special events. I was trying to find out if this gal is even legal, or what kind of competition she would be...So far...she isn't reg. with the BBB and found an article that stated she only does 3-5 cakes per week (of course they are special event cakes$$$). I cried this morning when I discovered this gal, but maybe I am over reacting, maybe she isn't a threat....what do you think?

Of course, we are looking at other locations now, we don't need a war...

Any thoughts?

13 replies
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breelaura Posted 20 Aug 2007 , 7:06pm
post #2 of 14

See if she wants to go in with you and handle the special events cakes. Together you'll have a lock on the monopoly! (evil grin - can't find emoticon since I'm in quick reply)

I'm about 75% serious with that suggestion, and it mostly depends if she's legal or no. If not, your offer would be super tempting. Otherwise, just find another location. It'll work out how it's supposed to... you just have to let things unfold and respond accordingly. Doors closing and windows opening and all that.

I think you should try to meet her in any case. It's good to be friendly with the competition, especially since it sounds like you might do more cross-referring than competing. Maybe she's even on here and you can be friends! icon_smile.gif (I know how to get that one to show up at least.)

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elvisb Posted 20 Aug 2007 , 7:12pm
post #3 of 14

I agree, I would stop in to say hi and meet her. I would also ask if she would like to join you as your "special events coordinator" , and if she doesn't want to entertain that idea, if you could possibly give her name out in the event you are too busy to book someone. Give her your name and number and tell her if someone comes by requesting a cake she does not prefer to do or is too busy, send them your way.

I guess, in a situation like this, the two of you can choose to be fierce rivals, or you can choose to back each other up. Even Duff collaborates once in a while. And it's always nice to have those extra contacts.

Also, if she only does 3-5 cakes a week, I'm sure there's plenty of other business out there to keep you both busy. But definately make friends with her. She could become a valuable ally. And good luck with the business!

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mgdqueen Posted 20 Aug 2007 , 7:12pm
post #4 of 14

I would personally not want to do business in the same plaza as another person...it's like Krispy Kreme and Dunkin Donuts next door to each other. Not being registered with the BBB is not uncommon though, as it is expensive and if she is a small business she would not spend the extra money to register.

My personal opinion would be to find a different location-not try to hurt an existing fellow baker. I can't count on two hands the number of bakeries and small shops around me, but they aren't next door to one another or even in the same strips. It just seems wrong. Good luck-I'm sure you are upset and I completely sympathize...but maybe there's a reason you're not going to move there. Maybe there is someplace better that's going to fall into your lap! thumbs_up.gif

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springlakecake Posted 20 Aug 2007 , 7:20pm
post #5 of 14

I would see if there is some other location that would suit you.

There is this little flower shop in town. There was a space for lease right next to it. Then I see a sign that says "coming soon! xxx flowers!" I just thought that was unbelievable to have them next door to eachother. Crazy. I would a wee bit upset if I were the first flower shop.

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beetle1948 Posted 20 Aug 2007 , 7:35pm
post #6 of 14

I think you should go for it and not worry about her
or anyone provided thats what you want to do. If you understand competition, its healthy and what I
mean by that you have a product that the public wants. Like gas stations, dept. stores and etc. I wish
you the best of luck in your . Just think if Sam Walton had said gee thier is already a K-mart i guess I wont, open my dept. stores which i was going to call Wal-mart. So do your self a favor if thats your desire go for it .

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CakesbyM_LC Posted 20 Aug 2007 , 7:40pm
post #7 of 14

thanks guys...just since i have read your posts, i feel a little better and i have thought about how we are retail and she is not...i think this will all work out...we'll see...i think i was just surprised when i found that someone was already i n that particular plaza! what are the odds, and i live in a small town where people buy grocery store cakes...ughh..

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indydebi Posted 20 Aug 2007 , 7:58pm
post #8 of 14

My concern would be working with a strip mall owner/landlord who permitted this kind of competitive businesses so close to each other. icon_confused.gif

That was part of the conversation we had when we leased our space. There is a pizza place and a family restaurant. The owner/landlord was concerned about getting too many food places, but since I'm not a walk-in/sit-down "restaurant" (how many times do I have to explain "I'm not a restaurant!!) then it was not 'competitive'.

A good landlord will want to prevent 2 flower shops side by side as this could cause one of them to go out of business. A good landlord wants businesses in there who are going to do well and STAY in business. A good landlord wants tenants who attract good traffic. Good traffic justifies his rent rates and helps his occupancy rate.

You want a landlord who has these concerns. You are about to sign a 2 or 3 year lease ..... do you want to sign it with a landlord who seems to have no qualms about putting another bakery right next door to YOU down the road????

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Horselady Posted 20 Aug 2007 , 8:10pm
post #9 of 14

Yes, but this girl is baking out of a flower shop right? Then I wouldn't worry about her. It isn't like you are putting a bakery next to a bakery....You are putting a bakery next to a flower shop, that happens to have someone who does side jobs...not your fault....(or did I read all this wrong?)

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kakeladi Posted 20 Aug 2007 , 8:16pm
post #10 of 14

Most likely the other gal is working from home and is not legal. Do everything legally and you should be fine.
I agree you should try to make friends w/her.

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KellyAnne1284 Posted 20 Aug 2007 , 8:28pm
post #11 of 14

I am so sorry that you have come to a bump in the road. I honestly can't tell you what I would do in this situation - I'd have to think long and hard about it.

I will tell you this, though:

About 2 years ago when my daughter was still an infant, I began to out-grow my 350 sq. ft. apartment (TINY!) with all of the added toys, supplies, swing, carseat, etc. I had just been offered a position making more than double what I had been before I had my daughter and I decided it was time to get myself and my angel a bigger, nicer, safer place to live (we were in a horrible, horrible neighborhood in an apartment that really should have been condemned). So....out searching I went. I finally found, through a realtor, a fantastic, beautiful, huge apartment about a block away from my Dad and late Step-Mom. I fell in love with the place, spent hours at the realtor's office filling out paperwork, my Step-Mom co-signed for me because I have less than perfect credit and I thought with her credit score, it was in the bag. For days I planned, packed, planned, packed...then I hear from the realtor....they decided not to accept me as a tenant because I hadn't been with my employer long enough. I was heart broken. Completely heart broken. About a week later, after getting over it and getting out to continue the search, I responded to an Ad and went to see another place. I can not tell you how happy I was that the other landlord turned me down because THIS place was 3x bigger, 10x nicer and in the best neighborhood I could have imagined, right at the end of a cul de sac. I still live there and still love it.

My point is....after rambling forever...that when God closes a door, not only does he open a window - but he does it for a reason. What will be, will be.

Good luck!

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indydebi Posted 20 Aug 2007 , 8:34pm
post #12 of 14

KelleyAnne, we call that "Every knock's a boost" meaning everytime you think you are knocked down,it's actually a boost up.

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CakesbyM_LC Posted 20 Aug 2007 , 8:37pm
post #13 of 14

wow, thanks, i am starting to feel much better, and am actually getting excited about this again...as opposed to this morning, i was ready to never do a cake again! (maybe)

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elvisb Posted 20 Aug 2007 , 10:55pm
post #14 of 14

That "every knock's a boost" made me realize my signature was not working. It has the same idea as your saying.

Fall down seven times, stand up eight.

Don't ever let life get you down. What is meant for you will be right around the corner. You just need to get up and walk over there. thumbs_up.gif

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