I gave my uncle's GF and her mom (the new owners of the restaurant) the torte I made. They flipped out and totally ON HER OWN, her mom asks me to bake for the restaurant. I have to do a lemon merengue pie, cherry pie, apple pie and another PB chocolate torte by Tuesday morning!!! I'm stressing because this happened so fast and she is saying that this is only the beginning and they'll want more soon. They want a different cake every week and I can use their kitchens whenever I want.

Here's the stress I'm having: COST/PRICE. I always loved baking and now decorating but I never had to deal with this stuff before and now I know why a lot of you are always so stressed over it! I did my research before I gave her the torte and 2 of the best bakeries in the area charge $2.07 and $2.14/serving. The mom (Linda) and I decided we'd charge $2.60/serving for a torte like mine (it's more costly than a standard cake). Okay, that's all fine and dandy.. but she said she will reimburse me costs (which I haven't figured out and cringe at the thought of doing - math is not fun for me at all) and then split the rest 50-50. Okay, so I'm making NOTHING. However, she says it will give me an opportunity to build my business because SHE OFFERED to make fliers for me and whoever asks where she gets her cakes, she's just going to hand 'em a flier. And I keep that money 100%. Plus, she says they do banquets and stuff, and I can do cakes for those.

Then she starts telling me she wants to add kids cupcakes to the menu, asking if I make cream puffs - maybe she was just thinking out loud but I sorta got overwhelmed. Only reason is that I have a full time job and two kids. My aunt was there and I expressed some concern, and my aunt said "If your biggest problem is being too busy, than that's not a problem." Basically my aunt said see how it goes and you may have to quit your day job. Which is what I want. But still - this is so fast. My DH is really unsure if he likes this idea. He said I'm going to be way too stressed and tired. Plus, I got the internship at the bakery that might pan out. I really still want to go forward w/ that too.

I guess if it all gets too overwhelming, I'll quit my legal secretary job and be in business??? I'm freakin! Am I overthinking this?

Also, I'm used to using not the best, but high quality ingredients. Now that I'm worried about costs, should I start buying off brand stuff? Will that affect my quality? They are trying to convince me to use cake mixes, but I don't want to do that.

Like I said, I'm freaking out on many levels!

HELP!!!!

Amber

I'm betting that you buy most of your stuff from walmart and sam's? with increased volume, and a commercial place to have stuff delivered, you can probably now deal with GFS and Sysco. That will cut your costs a lot!! For my cookies, I used grated orange peel. It costs me over $3/ounce at walmart.... when I buy the big container via Sysco, it's less than $0.25/ounce. Baking soda/powder is next to nothing via Sysco. YOu can still use good quality stuff and save on volume buying.

Know that when you start something like this, there comes a point where you are too busy for just one person and not busy enough to justify hiring someone to help. When you get there, know that it is PERFECTLY NORMAL and it means you are right on track. It's a hard hump to get over, but once you do, it is smooth sailing.

Sounds like they are really brainstorming some ideas. Brainstorming is a good thing. Then you step back and evaluate what ideas will work and what can be done now, vs. what you will work up to.

Yes you will be stressed. Yes it will be hard. Yes, if you are like me, you'll go over a year functioning on an average of 4 hours sleep a night. What got me thru it was watching a show on the food network where an entrepreneur said "When you start a new business, just don't expect to get any sleep." I always remembered that and believe it or not, it gave me the drive to go forward. I wasn't a "bad" person because it seemed hard .... I was normal!

I left my full time job over 9 months ago. We haven't missed it.

Share the numbers with them. THey may be totally unaware of what your costs will be and they want you to succeed, too. When you compare pricing wiht other places, are they making them the same way you do or are they buying the already baked/frozen items from Sysco? Higher quality items merit a higher quality price.

I am very excited for you! When it rains, it pours and you are standing in a blessed shower of good fortune!

(You wont' think so when your butt is dragging the ground from no sleep, but remember .... that's normal!)

Debi, if she quits her daytime job and does it full time for them, would it be better to have them cover costs and pay her hourly or for her to just set a price per cake/pie, etc? I'm just wondering what your opinion is. I would think it would be better to give them a price per item because whether they sell every slice or not, she still provided them with the product. Additionally, that way she could build her labor and profit into the cost of each item right? Just curious.

What, you don't like being a legal secretary any more? Doing all the attorney's work for them and not getting paid for what you do, working all those hours I understand I was a legal assistant for 8 years, I quit and now I work for the US Courts. They keep me busy with cake orders, but I don't make much profit from it. The cost to make the cake eats up any profits I make. I would love the chance to have a bakery business of my own one day. Good luck to you!

Amber, this is great news! I am sure a surprise, but aren't you glad it is going this way rather than having no interest at all??? I think Debi is right...you will make it through this phase and learn how to handle the volume. Having a kitchen to work from should help...now you can buy in bulk and really work out your costs, as Debi said. You just need to let them know what you are putting out there, and it sounds like they will be more than fair in setting a price you can both live with. Let us know if you decide to work for them or rent their kitchen. I have yet to hear from someone here on CC that is renting their space in MI, and what licensing is necessary. Good luck with all of it!!!!

Thanks everyone!

I figured out my costs (approximate) and I know I'll save more going to bulk foods, but for now, my costs were higher than I realized. What do you think of these price proposals (using fresh stuff, not frozen, except for the cherries - couldn't find any fresh ones - and everything is from scratch):

Lemon merengue, cherry and apple pie: $2.50/serving

PB Torte (cost was over $15): $2.99/serving

The compromise I proposed was going less on the fruit pies (even though it's in line with what the bakeries charge - they charge like 99cents (well known, but not GREAT tasting) to $2.76 (high end)). AND I suggested that instead of doing a torte w/ mousse filling which consists of tons of whipped cream, peanut butter and cream cheese, doing something w/ BC flavored w/ jam). Such as a white cake w/ raspberry jam BC filling. That would be cheaper.

We'll see what they say. I'm not going down on the torte price, though. It's worth $2.99 a slice IMO.

rather than reimburse supply cost -- can they order them for you from Sysco/GFS? and possibly even just pay for it? Then all they are paying you for is time/labor.

negotiate a 60/40 or even a 70/30 split (you/them) since you are suppling ALL the labor

DO use their kitchen, not yours, -- this puts the cost of utilities on THEM and cuts more of your costs.

Set a per WHOLE item price based on costs & labor---
ex. if the apple pie costs $4 in ingredients and takes an hour to make at pay rate of $10/hr, then the price to them is $14. After that, they decide how much to charge the customer. If they buy and pay for the ingredients, then it would be the $10 for labor.

And be sure about tax legalities. Are you going to be treated as an independent contractor? Or, if using their kitchen and if they buy supplies will you be an employee?

Doug, I think you're right - but they don't want to buy ingredients. I already asked. I'm giving them 1 price (at a discount), showing them regular price vs. theirs.

Here are some of my prices so far. Tell me what you think..?

Peanut butter torte (8-inch) REG $35, DISCOUNT $27
Fruit pies (cherry, lemon, apple) (9 inch) REG $20 DISCOUNT $14

Too much, little of a discount? They are supposedly handing out my # to customers, and not going to want a percentage of any of those orders I get direct.

ok this is really exciting!! My shop supplies a few of the local restruants, caterers, and party planners. Not mention book stores, jewlery shops country stores etc etc etc. I order all my stuff from a few diffrent suppliers. I use Dole & Bailey and North Center...as well as Albert Uster, creative cutters and of course intotheoven. I agree you will have to start thinking of buying from a bulk sorce rather than a wal-mart or what have you. If there is a order limit..like some say you have to place at least $500 before they'll deliver then ask if you can order your supplies from who ever your aunt orders from and then run down to the resturant and pick up your portion of the order. I do that with one of my resturants and it works out real well. Keep in mind for some of the big suppliers you'll need a tax id# which is very easy to get.
As far as pricing is concerned the prices here in Nh are far diffrent then where you are at but I give all my "wholesale" customers (the ones who place an order with me every week) a 20% discount.
I am so very excited for you keep us posted on all the happenings!

Hey Amber...
I am just thinking out loud...but instead of cutting your fruit , like in your pies, why not make them bigger by using more fruit. So the pie doesn't look like Mrs. Smith's, it looks like a "Mile High Pie".

Out here we have a place called Apple Hill and they make a Apple Pie that is at least 10 inches tall and stuffed to the gills with apples.
People pay at least 6 dollars a slice for it.

Maybe the solution is going bigger and not smaller since its a eating establishment. Dessert is a big deal when you go out to eat.
Another thing I have seen cupcakes that have the biggest frosting rose for 4 dollars!! The rose is bigger than the dang cupcake...now there's a profit maker =)

Just a thought...Good luck with your venture!!
Ronni

I seriously love you guys!

I am so excited! This is so fun!!!!!!!! (even though I've had no sleep in 2 days, but I have 2 little kids, so I'm used to no sleep!)