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    17 Replies Latest reply on Jul 24, 2009 10:56 PM by Nancy08

    Home Bakery

    love2cook Newbie
      I am starting a home based business where I will bake goods at home that will be sold at my friends store. My goal is to start with this one location and get my menu and system down. Once I am comfortable, I would llike to expand to other locations and someday have a cafe of my own. My questions are about money and expiration dates. In lieu of rent, my friend will give me space in her store to sell my products for a percentage of sales. What would one suggest I offer her for a percentage? I want it to be fair for both of us. In regards to pricing my products, I know I need to look at competitors and see what they are charging but is there any other advise or fomula I should be aiming for? How do I determine when a product should be pulled from the shelf? Answers to these questions and any other advice is welcomed and appreciated. Much Thanks.
        • Re: Home Bakery
          LUCKIEST Guide
          Home Bakery, Welcome

          If I was starting my own home based business I would contact SCORE.

          SCORE is FREE both in person and online and they will answer all your questions.

          Good luck, LUCKIEST
            • Re: Home Bakery
              love2cook Newbie
              Thank you. I have thought about contacting SCORE and now, I will.
                • Re: Home Bakery
                  dcmarik Wayfarer
                  Don't forget to check local ordinances as well. Here on Long Island for example it is illegal to prepare food for commercial sale from a home kitchen. All such products must be produced in a Commercial Kitchen which is subject to health codes and regular inspections by the board of health.
                    • Re: Home Bakery
                      love2cook Newbie
                      Thanks. I already checked, In Maine, we can make "baked" goods in our home kitchen. If I wanted to other foods, I would have to build a second kitchen in my home or of course, go somewhere else.
                        • Re: Home Bakery
                          My_Lan Adventurer
                          You sounds like you have a good foundation and plans underway to open the business. But have you figured out how you are going to get your name out there so people know who you are? Why should they buy from you versus another bakery? What makes you better or unique?

                          These are just questions just to think about before you actually open the business if you haven't already thought of it. Do you have an actual marketing plan?
                          • Re: Home Bakery
                            happy20s Newbie
                            Hi I'm also thinking to start a home baked produts, but I don't know if I can do it here in Atl.
                            So what I would like to know, is how did you find out if it was legal or not. and if you can help me ?
                              • Re: Home Bakery
                                Nancy08 Wayfarer
                                Hi Happy20s

                                You need to visit cookingwithdenay.com. The baker is a home-based baker and teaching a course on operating a home-based bakery. She is soooo knowledgeable. please email.

                                Nancy

                                p.s. I took her class. awesome!
                              • Re: Home Bakery
                                cinnamongirl7 Newbie
                                I also live in Maine and have looked into doing this. According to the Maine Food Code, there are all sorts of rules and regulations around making baked goods in your home for resale. Your home must also undergo the licensing process, which appears to be pretty strict. There are local ordinances as well. I just want you to be aware of these things!
                          • Re: Home Bakery
                            Nancy08 Wayfarer
                            Hi,

                            I know the going rate for organic produce delivery companies is an 80/20 split. I woulld suggest you contact cookingwithdenaydotcom she's a home-based baking consultant that may just answer your question via her contact page. I have used her before. She is a wealth of knowledge when it comes to home-food processing.

                            Nancy
                          • Re: Home Bakery
                            My_Lan Adventurer
                            Your friend wants you to pay rent and also take a percentage of the sales? That sounds like your friend would be getting a definite upper hand of the sales. If at all possible, how much would it cost for you to rent a place where you just pay for the rent? Would it be cheaper than renting it out from you vs your friend?

                            How are you plan on marketing your products?
                            • Re: Home Bakery
                              sdanil Scout
                              There's a big demand for elegant party favors that are unique and special...these are often delectable and beautifully presented baked goods and edible eye candy petit fours....look into it
                              • Re: Home Bakery
                                silvercell18 Wayfarer
                                Here's just some ideas. You have 2 different options in terms of setting the prices for you
                                home bakery and friend. One is to set up a wholesale price and let your friend determine the retail prices so whatever your friend sells it for, then your friend can get their profit from that. Another option is to have you start with 25%, then based on the volume that they push...if they sell more then you could keep giving them a larger percentage.
                                • Re: Home Bakery
                                  MrCrusty Wayfarer
                                  There are a number of ways to do this sort of thing. However, I strongly suggest that you get everything down in writing as to what each will provide in the way of products, available space used to display your products as well as what you can charge for your products.

                                  You MUST also get planning permission from your local authority before operating from your home to comply with health regulations.

                                  Very often grocery stores charge around $2000.00 dollars to rent the shelf with your products on that one shelf. You then have to maintain that shelf and your products upon that shelf. The grocery store will then at the time of the sale take 30% as their cost of your product.
                                  You are also responsible for any returns or poor quality, broken, or just plain bad product.

                                  As for shelf live. That will be mainly dependant upon what you are making. Cookies for instance have a good shelf life, some up to a year or even more other just a week or even a few days. Good quality cake say a rich fruit cake can be far better if left to mature for a couple years. A cake with baking powder maybe just a day or two. So thet quality of the ingredients are going to decide a lot in this instance.

                                  A fruit pie using a pie filling with its chemical retainers might last 4-7 days, whereas fresh fuit might only last one or two days. Weather has a profound effect on all the above. A thunder storm can turn fresh cream sour in minutes.

                                  It is difficult to say any specific time as you do not mention your products.

                                  I'd be happy to chat more with you on these subjects at crustybaker@howtostartabakery.com
                                  • Re: Home Bakery
                                    Lacheffier Newbie
                                    Do not sign any agreements with the people you describe as your market outlet. Regardless that they may be your friends, their agenda is not your agenda. Offer them your products on a cash and carry basis. If you believe in your products and they are accepted for their quality, you can eclipse your own expectations with much better distribution than your friends will allow.

                                    These folks may indeed be your friends, but they are also business people who will always look out for their interests first and foremost. Don't lock into something that doesn't allow you the option to maximize your profitability. The way they'd like to do business with you will probably include a proviso which states that any 'unsold or past dated' products on their shelves is your loss, not theirs.

                                    Fix a price, invoice them, state 'no returns' on your invoice.

                                    Chef Jack.