Should I Continue?

Decorating By TheTreeHouseBakery Updated 29 May 2011 , 12:47am by NerdyGirl

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TheTreeHouseBakery Posted 28 May 2011 , 11:13pm
post #1 of 3

I am a stay at home mom of two wonderful kids and I do LOVE to be creative and to bake. I live in MI and apparently It is legal to sell cake here within the cottage food law. That really isn't my concern though.
I was hoping to get some friendly advise on the work I do. I know I'm not flawless and the response in my area has been amazing. What I struggle with is the amount of time/money that goes into a cake and I feel like the money just isn't worth it. I have a website and I was hoping to get some advise on pricing. Currently I charge $2/ serving and $5 for each filling. My latest cake was a boxing ring cake. Not original-the friend wanted this exact cake. It was a 12" sq cake with two fillings. So I made $118. I charged her $2.25/serving for this cake and I just don't feel like it was worth the money. I have people calling me left and right and at the moment I'm not so sure all the business is worth it. I appreciate any advise.

Thank you,

2 replies
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alidpayne Posted 29 May 2011 , 12:01am
post #2 of 3

If you feel like the money isn't good enough then raise your prices. You say you have people calling you "left & right", well let them put their money where their mouth is. Your decision will be made for you. Either they really want your product and will pay what you are asking, making your business thrive, or they will refuse to pay the higher prices and you will not continue.

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NerdyGirl Posted 29 May 2011 , 12:47am
post #3 of 3

I know it isn't your concern, but I noticed you said "apparently" it's allowed. You might want to look over the Cottage Food Law FAQ on the Department of Agriculture website before deciding how to continue and if it's worth it. You can raise your prices, but remember that you can't make more than $15,000 a year under the law - net, not gross. There are also other rules to follow, like paying the 6% sales tax. I'm not sure how the governor's new tax plan will affect all of this quite yet. I'm still getting the info.

As far as pricing goes, check around at bakeries and such in your area to make sure your prices are competitive. Also, tally up how much you spend (of course, you should be doing this anyway). If there's a huge discrepancy, raise your prices.

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