Discover 6 tips to help you price you home baking business goodies like a pro as one
very successful home-based baking business owner sets prices for her business.
I've heard from a number of people who want to start their own home-based baking business. The one common question I get is how to get started and how to set prices.
Let's face it, in a baking business, you've got a lot of various ingredients coming together to create your product. So it's helpful to understand what you should do to ensure that you set your prices just right.
There's a delicate balance of setting your prices in such a way that
Setting your home baking business prices is definitely a delicate balancing act.
If you set your prices too low, you won't make enough money to stay in business. However, if you set them too high, then your customer's won't buy and you still won't be able to sustain your own business.
I have learned the fine art of finding just the right pricing strategy to
The valuable lesson I've learned in my home baking business is that pricing has to satisfy both your needs and your customers needs as well.
Therefore, when you are trying to determine which how to price in your home-based baking business, it helps for you to keep both your profit need and your customer's budget in mind at all times.
I loved to bake and this inspiration allowed me to begin a home baking businessI basically own a Vietnamese baking business specializing in Banh Mi and many other Asian bakery goods.
I thought that my Banh Mi was better than all the other stores' bread and I though at first that I may be able to compete with them (which is obviously impossible) but still turned out successful.
Being a Vietnamese bakery, I usually only sell Vietnamese baked goods, specifically Banh Mi, and Vietnamese donuts and puffy bread.
I knew I could gain a profit off my Banh Mi, however, the Vietnamese donuts and puffy bread need refining before I could actually sell so I offered a partial taste test for a few days to gain criticism to make the bread better.
I usually determine the price based on the time and ingredients needed to make it.
I haven't yet ran into financial trouble...and that's because early into my business I learned a very important pricing reality.
The trick to remaining financially fit in your business is paying attention to the daily income and monthly income, to gain a sense of insight of the fluctuation of the pricing.
I usually increase prices based on ingredients and time, as well as current economic situations.
What really surprised me was how high you could set the price to consumers as long the quality of the item was great. If you have quality and quantity, the business will do great.
What I really wanted to know with the pricing before was that you have to have a price that the consumers can afford, but you really want to have a price where you can have profit.
So you have to find the median between both worlds to actually keep customers and gain profit.
My regrets for my business were not knowing anything about markets beforehand. I just jumped right in hoping to make money off my Banh Mi which I knew was good, but it took weeks for others to realize.
One time, there was really no activity for an entire week so I had trouble deciding whether or not I should bake or hold supplies.
And then the time came when I had a few customers and I had no goods or the time when I had a few goods but no customers so I lost a bit of profit.
What I did was just be prepared both ways and accept the fact that businesses such as mine will have problems like these so just better to be prepared then have no goods at all.
I would recommend others to start a home baking service, only if they are experienced bakers. If not, then you better off working your current job as youll lose more money if you dont have an actual profit.