I am starting a new bake shop here in Panamá, but I am very concerned about product costing and pricing. I know that there is a rule that product price is equal to 3 time product cost. But for me this is an old rule because conditions have changed(nowadayas things are more expensive than before). Do any one knows the correct way to establish product pricing? Which costs i will be facing and how should I control them ? There is any literature that I can get on this topic?

By jeee2 on Thursday, July 15, 1999 - 02:14 pm: Edit

The old costs are the new costs, nothing changes.
If cost of supplies goes up you have to raise prices. If food cost creeps over 30% expect to start making less profit.
A bakery can easily operate at 20% food cost, the downside is the labor, but if you're willing to do the work you'll make it.

By magda soliman on Wednesday, October 20, 1999 - 11:50 am: Edit

I'm about to open a pastry shop, I would like to know how to mulibly the recipe, for example, when making a genois, can I multibly the recipe to make 4 or even six cakes at a time, I heard that is wrong, could you please help me, we are suppose to open the shop by December 1, 99.

By W.DeBord on Thursday, October 21, 1999 - 08:25 am: Edit

Ive always read that multipling by 4 is the most one should do. But I break that rule all the time! I usually stop at 8, over that it's usually more volume than I can batch up quickly. I don't see why not, so long as you feel comfortable. It won't "break" like a sauce, worse case it may be a little flatter/lose a little volume.

I'm not educated in the science of baking but as I understand it what usually changes is your levining ingredients. Items that don't rise, custards, sauces I multiply to my hearts content.

Address the person who goes by d. she adjusts recipes all the time. I've used her recipes before and they work well.

By Pierre (Pierre) on Tuesday, October 26, 1999 - 10:26 am: Edit

If you are asking these types of basic questions now you may be in a little over your head opening a pastry shop!

By isabel on Tuesday, December 14, 1999 - 01:57 pm: Edit

I am thinking about starting a bakery but, before that I want to try to make the recepies in an appartment kitchen and than sell them whole sale.
Is that possible? What if I have an appartment rented just for my "bakery"?

By Melinda on Tuesday, December 28, 1999 - 12:43 am: Edit

Isabel, you need to be really careful about baking for resale out of an apartment. Most places need to be commercially zoned if you intend to take money for your goods. Not to mention licenses and inspections and such. Make sure you stick to your sanitation rules or someone may find you liable if they feel like it.

By Tina on Tuesday, February 29, 2000 - 11:29 pm: Edit

How do I remove a cheese cake from a springform pan to a cakeboard with out damaging the cake?

By Kathyf (Kathyf) on Wednesday, March 01, 2000 - 12:51 am: Edit

Replace the springform bottom with a tin foil wrapped cardboard. I double wrap the tin foil - once from either side - so both sides are covered. That keeps the cardboard from absorbing any butter from the crust. Don't use a thick piece of cardboard - a precut cake circle is the right thickness. I also wrap the bottom of the springform pan with tinfoil to keep it from leaking in the oven. I use the cardboard even when making cheesecakes for my family and friends. It keeps you from losing the bottoms of your pans. You also never have to worry about cracking a cheesecake transferring it. I've been using this method for a long time with no problems. Good luck.

By pam on Thursday, March 02, 2000 - 11:30 pm: Edit

you can just heat the bottom of cold cakes slightly,lay on flat top,torch or flame the bottom,just to melt the cold butter thats hard. Then slide on cake round. When it's chilled again the butter hardens onto the cake round & it won't slide off.

By Mikeh (Mikeh) on Friday, March 03, 2000 - 10:31 am: Edit

I really liked the way we did cheesecakes in school. At home, I've always baked them in a springform pan, covered with foil, in a bain marie, at a low temperature for a long, long time. In school we baked them in 9" or 10" custard pans (they have sloped sides) with a pan liner and heavily buttered, in a water bath that was simply a quart of water per sheetpan, at 300 degF and they turned out perfectly. We then allowed them to cool for an hour before freezing overnight. The next day they are placed in very, very hot water for 5-10 seconds and they pop right out of the pans. No cracks, nice smooth sides, and they are much easier to cut when only partially thawed.

By Kathy Bigler on Saturday, April 08, 2000 - 01:54 am: Edit

First off, I am wanting to make birthday cakes and party food, out of my house, to make a little cash on the side. What are the laws on this? Do I have to contact someone with the health board? Also, if I see a cake out of a magazine or on a website and make it for someone - can I get in trouble for this? What are the laws on that? And where do I go to find these answers? Thank you for your time!!!!

By christine johns on Monday, April 10, 2000 - 03:51 pm: Edit

I have recently started a cake decorating business out of my home, my problem is that I live in Ontario Canada and I find it really costly to order supplies from the U.S.. Duty exchange and GST add up quickly. I am wondering if you have any suggestions how to find suppliers in Canada. I am looking for decorating supplies,cake stands, and cake boxes, and blank edible frosting sheets. Any suggestions? Thank you for your time!!!

By W.DeBord on Tuesday, April 11, 2000 - 10:19 am: Edit

Dear Ms. Johns,
I'm sorry but you won't find much help at this site. Running a business from your home is not a popular concept with professional pastry chefs. I would suggest reading trade publications pubished in your country. They should have advertisements that would lead you to suppliers in your area. Good Luck.

By Janie Craft on Wednesday, April 26, 2000 - 11:26 pm: Edit

Dear Christine,
Try a paper products supply house for your cake boxes and cake rounds. That is were I get mine. You can get supplies alot cheaper from whole sale houses than you can order from places like Wilton. You need a tax number in the States, I don't know about Canada. I hope this is of some help to you.

By G.Witt on Monday, May 29, 2000 - 09:38 pm: Edit

Planning for start a cake catering business.How do I plan for the large volume -have been doing smaller volumes sucessfully. Now need to expand in all areas-employees, room, etc. How do you start to find ways for large volumes? Is there some company that can help with these issues?

By W.DeBord on Tuesday, May 30, 2000 - 08:51 am: Edit

There is a consultants area at this web site...you could ask them.

By Joel A. Larrabee on Sunday, June 25, 2000 - 07:43 am: Edit

I have opened an American Coffee Bar and bake shop in Springe Germany. I find it very hard to get some of the supplies I need to bake muffins. Here in Germany you have to be a certified baker to get supplies from most baking suppliers or you have to order their mixes. I retiered from the Air Force and stayed here in Germany and I was certified and trained in Hotel & Restaurant but not baking. I bake original American Muffins,cookies,brownies etc. I need paper muffin baking cups/forms, does anyone know a supplier in the US that would sell to me here in Germany?

By birdj1 on Sunday, July 30, 2000 - 04:50 pm: Edit

I am interested in openeing my own coffee/ bakery shop. I have over 15 years of exprience in running buisness operations and I am looking to start my own. I have picked this area because I like the idea, but I am not sure about the equipment needed. I have worked in the food industry and understand the concept and what it will take. Does anyone know where I can get a equipment list to start this company.

By Panini (Panini) on Sunday, July 30, 2000 - 06:52 pm: Edit

Your equipment list will be a direct result of the products you will want to serve, and how you will prepare them.

By Dora (Dora) on Thursday, August 17, 2000 - 06:21 pm: Edit

I want to open a Pâtisserie in my town but I want to specialize my merchandise for diabetic people, I'm trying to find out which sugar substitute would be the one for the bake goods that I'm planning to make. For now I'm plannig to make flan and cheesecakes and if everything goes well, add more products. It has to be kind of cheap also so the product is not expensive.
Please, help me making a decision because even that I've been looking all over the internet for answers, there are so many sugar substitutes that i don't know with one to use.
Thank you for your patience and waiting for your promtly answer.
Dora Franceschi

By maria ruiz on Sunday, August 20, 2000 - 01:33 pm: Edit

I want to work from home making all types of cake/muffins, can any body tell me what are the must do's for this. I just want to make a little extra money on the side.

By RDB on Sunday, August 20, 2000 - 10:12 pm: Edit

This is not the place to ask about people cooking from home it is a forum for professionals only. home products belong in the home not in retail!!!sorry for being so direct,if you want to make extra money sell avon.

By W.DeBord on Monday, August 21, 2000 - 08:01 am: Edit

I want to open a business, it might be illegal out of my home but... I don't care enough to look into that. I don't know how to make the product or how to go about it. I can ask a few questions of professionals and then I too will have a profitable little business.


Can none of you see how basic your questions are?! You have over estimated your readiness!

Ditto, sell Avon!

By jmp on Thursday, August 24, 2000 - 06:26 pm: Edit

I can't see that being a so called professional gives one the right to be rude.The people who have asked about business start ups in home based business ask for an answer to their question only to be insulted.

By jmp on Thursday, August 24, 2000 - 06:28 pm: Edit

I can't see that being a so called professional gives one the right to be rude.The people who have asked about business start ups in home based business ask for an answer to their question only to be insulted.

By KISS MY ASPIC on Thursday, August 24, 2000 - 08:40 pm: Edit

jmp-- if you don't like it, LEAVE. AS THE OLD SAYING GOES "IF YOU CAN'T STAND THE HEAT GET OUT OF THE KITCHEN !!!!!!!

By Marie on Thursday, August 24, 2000 - 10:28 pm: Edit

If I can be so bold....I have been searching for awhile on the web for info. on starting a baking business out of my home also. I am aware that there are licenses, health dept. standards, etc. However, I am really just starting out, and live in a small town to boot, so resources are scarce, and the internet is right here. I do respect that this is a professional forum, and therefore will not post again. However, since so many people have been asking, is there a direction anyone could just give us a gentle nudge in? I would like to talk to people who could help me, starting from way bottom, but not knowing where to go from here. Thank you...P.S. Am allergic to Avon products, so won't peddle them, haha.

By Cheftim (Cheftim) on Friday, August 25, 2000 - 03:12 am: Edit

Marie,
This question has benn asked many times many times. Not so long ago as a week. We/some of us have answerd this very question you have asked many times, (in this very thread). The truth be told, I have baked out of my home, and some of the other have done the same. Only those with the fire in their belly continue on to some thing else. Baking/cooking at home equals to less than minamum wage. Quality is not a issue I am sure the muffins and cakes you bake are top quality. It is simply not an easy way to make a little extra money.

The Profit margin is small, the learning curve is steep.

Take a deeper look int to the posts (Bakers Dozen) in this forum. Take a little time and you will see beyond your simple question. If you do take the time you will see how rude your question is because it has been anwered so many times many before.

By Panini (Panini) on Friday, August 25, 2000 - 07:09 am: Edit

A person must be thick skinned to survive in business, so maybe you've learn something after all. Going away solves nothing, there will be major dipped in your business, you must hang in there.
I listened to all the negetives for years and I consider that lost time. Stay here, learn, ask more specific ?'s, and take the good with the bad.
Good luck to you.

By cai on Tuesday, January 23, 2001 - 02:50 pm: Edit

I am seriously considering purchasing an existing and successful bakery. The sales are approximately 70% wholesale and 30% retail. I have been involved with the valuation of other business types, but I have never valued a bakery. What is the standard model used for bakeries? 1/3 Gross sales? Any help would be appreciated.

By Panini (Panini) on Wednesday, January 24, 2001 - 02:49 pm: Edit

If somebody is offering to sell their bakery for 1/3 annual gross sales and you've done all your homework ie. certifying the books, sales, re-op's for existing wholesale customers etc. I WOULD JUMP ON IT!!
If I had to sell one of my bakeries I would not consider anything less than 1 1/2 x's gross sales.
ps. Do you know the business. It's labor $ that will eat you alive.

By Panini (Panini) on Sunday, January 28, 2001 - 10:46 am: Edit

cai,
I just reread my hastily written post. Most businesses do formulate out at a lower percentage
than food service. I calculate my business as two. The manufacturing part and the retail sales. A lot of retail businesses are priced based on buying in products for resale.( I'm sure you know all this ) but your margins are much higher in this business if your making the products. When reviewing the business some good guideline: labor
20-30 % cogs 17-25 % overhead++. net without officers salary should be 20-30 % area.
I don't know if this helps. any more ?'s paninicakes.com