Small Town Pricing

Business By MajesticCupcakes Updated 6 Nov 2013 , 5:02pm by uptownbaker

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MajesticCupcakes Posted 21 Jun 2013 , 11:12pm
post #1 of 65

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???

64 replies
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jason_kraft Posted 21 Jun 2013 , 11:25pm
post #2 of 65

AI 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.

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MajesticCupcakes Posted 21 Jun 2013 , 11:28pm
post #3 of 65

Thank you Jason!  I will start reading!

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AZCouture Posted 21 Jun 2013 , 11:31pm
post #4 of 65

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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AZCouture Posted 21 Jun 2013 , 11:32pm
post #5 of 65

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

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jason_kraft Posted 21 Jun 2013 , 11:56pm
post #6 of 65

A

Original message sent by AZCouture

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.

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jiya11 Posted 22 Jun 2013 , 12:03am
post #7 of 65

A

Original message sent by jason_kraft

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...

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jason_kraft Posted 22 Jun 2013 , 12:08am
post #8 of 65

A

Original message sent by jiya11

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

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IAmPamCakes Posted 22 Jun 2013 , 12:22am
post #9 of 65
Quote:
Originally Posted by jason_kraft 


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.

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jiya11 Posted 22 Jun 2013 , 12:23am
post #10 of 65

A[quote name="jason_kraft" url="/t/760050/small-town-pricing#post_7406841"] GA also has a $100 annual license fee.

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

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?

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jason_kraft Posted 22 Jun 2013 , 12:30am
post #11 of 65

A

Original message sent by jiya11

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/

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Stitches Posted 22 Jun 2013 , 1:56am
post #12 of 65
Quote:
Originally Posted by AZCouture 

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?

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IAmPamCakes Posted 22 Jun 2013 , 2:15am
post #13 of 65

APages with names like 'stuff to sell/buy/trade or free in [area code]' There are like four in my area alone on Facebook.

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AZCouture Posted 22 Jun 2013 , 2:50am
post #14 of 65

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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AZCouture Posted 22 Jun 2013 , 2:56am
post #15 of 65

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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Stitches Posted 22 Jun 2013 , 3:05am
post #16 of 65
Quote:
Originally Posted by AZCouture 

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.

 

 

Can you pm me those? The only fb pages I could find on my town seemed governmental or business listings. I'd like to know who's selling cakes illegally.

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jason_kraft Posted 22 Jun 2013 , 3:09am
post #17 of 65

AIf you go to Facebook and type something like "buy sell trade (your location)" in the search bar at the top you should find local groups in your area. Craigslist is another good starting point.

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AZCouture Posted 22 Jun 2013 , 3:12am
post #18 of 65
Quote:
Originally Posted by jason_kraft 

If you go to Facebook and type something like "buy sell trade (your location)" in the search bar at the top you should find local groups in your area. Craigslist is another good starting point.

Exactly. I'll pm mine to show you.

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Elcee Posted 22 Jun 2013 , 3:20am
post #19 of 65
Quote:
Originally Posted by AZCouture 

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

icon_lol.gificon_cry.gificon_lol.gificon_surprised.gif Please tell me you made up the one about the breast pump and the cow! You had to have made that up! Right? Right?

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Elcee Posted 22 Jun 2013 , 3:22am
post #20 of 65
Quote:
Originally Posted by Elcee 

icon_lol.gificon_cry.gificon_lol.gificon_surprised.gif Please tell me you made up the one about the breast pump and the cow! You had to have made that up! Right? Right?

OK, I just read the rest of your blog post and realized you made them all up. The cow one was brilliant, though!

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AZCouture Posted 22 Jun 2013 , 4:24am
post #21 of 65

icon_lol.gif Yeah, I had to make throw in some stuff that was bizarre...but there are some ridiculous things that go on, and the cake one, is exactly what happens sometimes, the only thing I "embellished" was the poor decorator's final response. 

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Pyro Posted 22 Jun 2013 , 5:59am
post #22 of 65

WoW, dark side of FB. Someone in my area is selling an opened bag of diapers...

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AZCouture Posted 22 Jun 2013 , 6:38am
post #23 of 65

A

Original message sent by Pyro

WoW, dark side of FB. Someone in my area is selling an opened bag of diapers...

Burn her!

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MajesticCupcakes Posted 1 Jul 2013 , 8:50pm
post #24 of 65

Thanks everyone!!!  I really appreciate the replies.  Its been a busy couple of weeks so I am slow in catching up with everything.  

 

Jason, I read your article and 100% agree!  

 

AZCouture, I agree with you also about the FB pages.  Most people are looking for ANYTHING cheap, not just cakes.  But I have to admit the pages have brought me some inquiries without me even posting to them, rather people I know post recommending me!  

 

I am getting better at knowing I am pricing correctly, especially after a wedding cake I just did!  I don't want to be the cheap cake lady!!!

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MajesticCupcakes Posted 1 Jul 2013 , 8:56pm
post #25 of 65
Quote:
Originally Posted by AZCouture 

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

 

Thank you for the laugh!!!  I needed it!
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denetteb Posted 2 Jul 2013 , 2:21am
post #26 of 65

Just saw this show up on a dog park group, called (town nickname) bake sale.  It was a closed group, when I just now went to copy/paste the summary saw it is now open.  A quick scan showed cakes, cupcakes, etc.  I will have to go back and see what all is on there.  This is the "about" summary: 

 

For me, there's only one thing better than spending the day in my kitchen making yummy baked goods, and that's spending the day making them for someone else. I made this page as a way for people who love to bake to find people who love baked goods. If you love to bake and would like to make a few bucks....or if you'd love fresh baked goodies, but hate being tied to the oven...this is the place for you!

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denetteb Posted 2 Jul 2013 , 2:36am
post #27 of 65

Just read through it, it is a new facebook group so didn't take too long.  One person has cupcakes 6 for $10 or 12 for $20.  They look pretty good.

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JWinslow Posted 2 Jul 2013 , 3:55am
post #28 of 65
Quote:
Originally Posted by AZCouture 

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


Love it!  I knocked my coffee over laughing  - "So, I can use it for my human baby then ?"   hahahahah..........  

Your post made the point!

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cakefat Posted 2 Jul 2013 , 4:12am
post #29 of 65
Quote:
Originally Posted by AZCouture 

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

 

that was awesome! thank you for the laughter!!

 

you seriously got hate mail from that??? From the cheap cake ladies of the FB flea markets?

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newbe86 Posted 3 Jul 2013 , 3:25pm
post #30 of 65

Are part-time/hobby bakers really viewed as under-cutting and looked down upon by full-time bakers? That is kind of the feeling I get, even though I am going through everything to make sure I run a legit business and am fairly pricing (by doing research with regards to what other local bakers are charging), getting the proper permits and licensing, etc.  Do full-time bakers really see small home/hobby bakers as people trying to cut into their business?

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