Need Some Advice ~ Grocery Store Bakery Opened But Strugglin

Business By CakeDiva73 Updated 4 Jan 2010 , 8:49am by FromScratch

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CoutureCake Posted 3 Jan 2010 , 7:08am
post #31 of 38

Here's what a bakery back home does... They're in a LOW income area of the state but still manage to do well...

Stop focusing on what YOU want to sell, focus instead on what your CUSTOMERS WILL BUY!!! Sure, you might not sell a lot of $$$ cakes, but you can sell a lot of double-serving size portion packs... The bakery sells 4x4 frozen sheet slices of cake, 4 cream horns, or single creampuffs, 4 cupcakes, and they FLY off the shelves... They're under $5 each, but it's the price point factor...

People can afford to give themselves a "treat" in this economy, though they may not be able to afford the full cake... Focus on moving product off the shelf that is delish. Also, come up with a good sugar-free cake... or a Gluten free cake... those are two types of customers just CRAVING cake and have a horrible time finding a bakery to just do a metal pan cake... or a Vegan cake...

The other thing the local bakery does is that they have multiple levels of cake in their case... Yes, they have the $19.95 quarter sheet, but they also sell the $19.95 7" torte cake. Remember, price point of your CUSTOMERS...

Also, do you have any dummy cakes on display? When people see your work, they'll get a sense of what type of product you're offering. I'd also label your pre-froze stuff differently than your custom made stuff.

Do something unique and have it on display with a "call me!" And do one up for each season, right now it's work party season and getting ready for Valentine's day... do up the ring box cake for the guys getting ready to propose for an idea...

Also, are you there when your higher end clientelle is actually shopping??? The people who can afford the higher end stuff don't come in during the daytime, they come after 5 when they get off of work.

While I understand you've got kids, there's also the factor that you've got to be there when your target market customers are to see you as separate and distinct.

As for bridal shows, don't do the big expensive ones, do the small town local ones... Check your local KC hall because they usually will have one put on by someone local. It's the local shows that you'll gain the most business because you get more face time. Many brides don't know that their local grocery store actually has a quality baker there.

Break with the business plan you have and rework it to the business that you HAVE. Just because you're in a low income area doesn't mean that you have to produce a low quality product. You just need to adjust how you market your product because of who your target customer is in the market you're in.

Never sell yourself short, like any business you need to be flexible with the customers you HAVE and find out what you can hook THEM into purchasing...

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zdebssweetsj Posted 3 Jan 2010 , 10:39am
post #32 of 38

Sounds like excellent advice.

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littlecake Posted 3 Jan 2010 , 5:07pm
post #33 of 38

the little stuff can add up to big money, i love what CC said above...i know most of the people here say they would rather "make 1 cake than 10 small ones.".....but you'd be amazed how much you can make on small stuff...it's really the bread and butter for me.....those of us who pay rent sometimes have to do things differently.....you need to be flexible, i've changed the way i've done things several times before i got it down to a science what works in my area...and i'm still changing.

plus i take ALOT of last minute orders...my sheet cakes are ready in the freezer, so why not?...that adds up to hundreds of extra doillars every week......and i only work really hard 3 days a week....some of the peeps say they should call me cakes 911.....ha ha ha...plus the last minute customers are so grateful.

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cakesweetiecake Posted 4 Jan 2010 , 12:22am
post #34 of 38

Lots of great advice given here. I am hoping that everything works out for you!

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tatechloeandlucysmom Posted 4 Jan 2010 , 12:39am
post #35 of 38

I don't have any answers, I just want you to know that I'm rootin' for you! I'd love to see this work out fantastically for you (and I missed allllll the cakelady? drama.) icon_smile.gif Here's to an incredible New Year! xoxo -Laura

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jewelsq Posted 4 Jan 2010 , 1:57am
post #36 of 38

If you don't have time to devote to the VOLUME (which is how you'll make real money in a grocery store bakery) needed for the bakery, how can you find time to expand the line to grab-n-go savory food? Don't go there, yet.

Does the grocery store make the profit from the bread you bake and sell or did you? If you made the profit, hire a high school kid to break it out at night and do the cleaning and a college kid to come in early, proof it, make the donuts and bake it during the day. A senior citizen is a great option when you need someone to bag and stock the shelves.

Get the shelves full of grocery store product. Get the money flowing.

JOIN YOUR LOCAL CHAMBER OF COMMERCE. Make some friends there and in the community and then have a big bridal/cake/grand opening expo (after a lot of exposure, advertising and set up.)

You cannot successfully do this alone (labor wise).

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johnson6ofus Posted 4 Jan 2010 , 6:29am
post #37 of 38
Quote:
Originally Posted by CoutureCake

Stop focusing on what YOU want to sell, focus instead on what your CUSTOMERS WILL BUY!!!




This is the best advise on here. Make what can/ will sell and do custom "on the side". Who needs to know it will be made in the same kitchen?

My son worked at Home Depot (electrical dept.) and was good at it. He would help people and sell stuff all day long. And once or twice a week, someone wanted him to "help" by doing it for them. Great side $$$---- a big no-no now, but not at that time.

Can you make the "daily grind" pay off with labor help, and still do custom work "on the side"? So you can still get a steady income while working your "side" custom work....

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FromScratch Posted 4 Jan 2010 , 8:49am
post #38 of 38

I have to agree that you need to keep your custom cakes away from the grocery store (the name anyway). No one who is shopping for desserts in the grocery store is going to pay custom prices. Cakes from the grocery store are supposed to be inexpensive. Even if they are beyond gorgeous... people are going to expect grocery store prices. You have to decide if you want to take on the baking for a grocery store on top of your custom cake business. I think you could do it with help. Bake the store's goods and have the normal sheet cakes and 8" rounds that all grocery stores have. Have the cakes shipped in... get your icing in buckets... people will buy those. They are not a huge profit, BUT... it will get you your comercial kitchen, and having help will allow you to focus on custom orders that come in. I'd set up a DBA for your grocery store venture and not associate your custom cakes venture with the grocery store at all. The grocery store is just where the kitchen is and you don't have to have people come there for consults. Go to them... meet in a coffee shop... but don't meet them at the grocery store. It will discredit you in an instant. If they ask where you bake your cakes you answer "I rent a commercial kitchen to bake and prepare my cakes."

If you don't want to take on the stress of stocking a grocery store's baery on top of your normal orders then I'd look for a new place, or pay the extra money for rent there and not have to stock their shelves. Let them go back to having their bread shipped in baked.

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