Running a bakery requires a lot of time, money, and energy. Sometimes your revenue doesn’t reflect the effort put forth. Just baking alone can take up 70% of your time. With slow sales from your website, vendor events, or marketplaces like Etsy, it is hard to turn a profit. Let alone scale the business. Here are some tips that will work if you want to get your time back, reach more customers, or earn more money.
Offer Wholesale
A great way to increase revenue is to add wholesale products. Some small business owners are turned off by wholesale because they sell the products for half the retail value. And feel they are losing money, but it’s the opposite. You are increasing revenue because your volume has increased. Wholesale orders are often in the hundreds or thousands of dollar range; per order. Imagine how many customers you need to purchase your products to make $1,000. You can make that with only one wholesale retailer. Adding wholesale to your business is like having a lifejacket. When online sales drag, wholesale orders can keep you afloat during the slow months. You might find that wholesaling is more profitable, spending less on advertising and marketing.
You can apply to sell wholesale products on wholesale marketplaces such as Faire, Creoate, Bulletin, Mabel, and Stockabl. Another way to get wholesale customers is to contact businesses directly. Email a line sheet and order form to the person responsible for purchasing inventory.
Work with a Co-packer
Baking can take a lot of time and energy. Sometimes you will need extra hands to meet a tight deadline. Working with a co-packer can assist you with your baking and packaging needs. Many commercial kitchens offer co-packing services, or you can check with small local bakeries. They have the equipment and the staff that can increase production far more than you can do on your own, the perfect option for those who still have full-time jobs while running their bakery business part-time.
Offer White-label products
A white-label product is a product produced by one company that other companies rebrand to make it appear as if they had made it. It is perfectly legal and very lucrative. You are selling directly to other businesses, providing the finished product (baked and packaged). Some companies are more interested in branding products rather than making them. If you have the facility, equipment, and time this is the best option to increase revenue for your business.
You can apply to sell white-label/private-label products on wholesale marketplaces such as Faire, Creoate, Bulletin, and Mabel. There are many others to choose from, do your research for which platforms are best for you. Another way to get white-label customers is to contact businesses directly. Email a line sheet and order form to the person responsible for purchasing inventory.
Outsource production
The last option is outsourcing the baking and packaging duties to another company. Now you can focus more on marketing, branding, and advertising. You are only responsible for fulfilling and shipping the orders as they come in. This option will save you so much time. But it will lower your profit margins. For this option to be profitable, there needs to be a strong demand in the marketplace for your products. You must show a track record over an extended period of consistent sales through various channels. Check with local commercial shared kitchens and bakeries for this type of service.
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