Thread: Online bakeries
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D.Currie[_1_] D.Currie[_1_] is offline
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Default Online bakeries


> wrote in message
ups.com...
>
> D.Currie wrote:
>> If you were making them commercially, not only would you have to consider
>> ingredients and labor, you'd need to cover the cost of working in a
>> commercial kitchen, which is generally a health code requirement. Here,
>> if I
>> wanted to, I could rent one for $25 per hour. I don't know how many hours
>> your "all day" dough would really take, but if it's 8 hours, that's $200
>> added to the cost. How many Danish could you make and sell in a day, and
>> how
>> many would you end up throwing away after they got stale?

>
>
> The actual labor is about two hours or less depending on how fast or
> slow I work. The rest of the time the dough is either resting in the
> refrigerator or I'm waiting for the finished danish to rise. I would
> never consider selling them commercially although I have gotten orders
> from neighbors. In order to be cost effective in a commercial
> environment a person would also have to sell other products that could
> be made more quickly at a lower cost.
>


The whole point is that there are a lot of costs in doing something as a
business that have to be factored into the cost of product or service. Most
people look at the cost of materials and discount all the other costs.

It always amuses me when someone looks at a CD (music or software) and
wonders why it costs so much when it's just a couple pennies worth of
plastic. But everyone from the CEO to the guy who cleans the offices at
night has to be paid from the "profit" on the CD.

Same thing with those Danish or cookies or whatever. When you buy one,
you're not just paying for ingredients, you're paying for all the other
business expenses as well. So of course you can make them a lot cheaper at
home.

Donna