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  • #983003
    Megsy
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    Hello there,

    With interest I have been reading everyone’s great advice on the concept of baking at home at the hope of supplying yummy treats to local cafe’s.

    I’m already studying my kitchen to assess it’s suitability for the above task and after your sound advice will make sure I take the right steps before undertaking my little venture.

    I would just like to ask anyone if you could advise me through experience or word what level of profit I should expect from a batch of cookies or a cake etc and what percentage mark up cafe’s tend to like to get for each piece?

    This is a totally new concept for me and I’m at a very early stage of development which of course is trying to assess the feasibility after costs associated with ingredients, power and time.

    I would really appreciate any advice anyone could offer.

    Thanks!!!

    Megan.

    #1140076
    The Hobbit
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    I think you should contact your local council health inspector, some council have some rather odd rules about food. I know of at least one council where you can cook things at home to sell at the local markets but need a full on commercial approved kitchen to sell the same things from a shop.
    Make some anonymous enquiries first. You wouldn’t want to build up a business only to have the local council pull the plug on it.
    Regarding pricing, your costs are only relevant to gauging your profits, price is determined by the market. Have a look around and see what the items sell for and allow the retailer 100% mark-up (he’s paying the rent and overheads)
    Good Luck

    #1140077
    Megsy
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    Hello The Hobbit,

    Thanks so much for your response and sound advice!
    It just seems crazy that you could sell the same baked item at the markets and be able to produce it in a totally uncontrolled environment.

    I’m just at the stage of considering baking good old fashioned biscuits and slices as a nice little at home business so I definitely have quite a bit of homework to do.

    Will give the council a call this week to get the details and then of course
    Should investigate the insurance aspects.

    As far as the mark up goes, if it was in fact about 100% that would still work quite well as these things seem to be ridiculously expensive in cafe’s with very litte under $5 a piece.

    Thanks again for your help.

    Megsy.

    #1140078
    Divert To Mobile
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    Hi Megsy,

    To determine pricing, I would try a rough guestimate by benchmarking from the humble muffin. You know how much the local cafe’s are selling muffins circa $4.50
    If you were to call some bakeries and pose as a cafe, you could ask them the wholesale price on muffins and possibly get a ballpark.

    Steve

    #1140079
    Megsy
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    Hello Steve,

    Thanks so much for that advice, I hadn’t thought of contacting bakeries and will get right onto that. I guess there are a few costs to be taken into consideration that will add to the production cost including of course some type of license from the council and also insurance in case I drop something unwelcome into a cake (god forbid)!!

    Thanks again.

    Megsy.

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