10/09/2022
ARE YOU RUNNING A PROFITABLE BAKING BUSINESS? Part 1
I asked this particular question on my wall yesterday but I couldn't get a valid answer.
That is why I am writing this to you.
A baker reached out to me a few days ago asking for my opinion on his fish roll business.
In his words, he said, "I sell my fish roll for #100 and it's very rich in taste. in fact, I add β¦β¦. and β¦β¦. but at the end of the day, I discovered I was not making profits even though I sell out all my snacks"
If you are experiencing something similar in your business, then pay attention. This post is for you.
First and foremost, I want to believe that you have great products you sell to your customers because if you don't, the business is already set for failure.
Whether you are selling cakes, small chops, snacks, food, event decoration services etc, it is important that you know the parameters to check if your business is profitable.
One of those parameters is Pricing.
A lot of bakers do not pay attention to this phenomenon.
They determine their prices by what other bakers charge.
For instance, baker A charges #500 for a small foil cake. And without doing any research or findings, you fix your price the same or even lower it to #450.
But in the real sense, Baker A sells at least 100 pieces of small sized foil cakes everyday. She has a big bakery and She has employees who do 100% of the work.
On the average, she makes #10,000 profit everyday from the foil cake. In fact, She dedicates all the profits from the foil cake business to pay her employees salaries, rent and other expenses.
A critical look at this shows that she's not making any profit from the foil cake business. However, She's only making enough to cover her expenses.
She has another product that actually pays her at the end of the month.
But on the other hand, the highest foil cake you sell daily is only 4. You buy ingredients in units and you do all the work alone. What do you think will happen if you copy baker A's