How I Made 6-Figures with an Online-Only Bakery
A Recipe for Success!
In today's digital age, the internet has opened up countless opportunities for entrepreneurs to turn their passions into profitable businesses.
One such success story is my online baking business.
I created the first online-only bakery, Dessert .net Cafe. For 15 years my passion for baking southern cakes and gourmet desserts was in full bloom. I was generating a six-figure income from the comfort of my home. Not bad when you consider I started with one recipe, an Internet connection, and a used mixer with one beater. I kid you not!
So hold on to your whisk because I am about to share with you the step-by-step recipe that contributed to the success of my online bakery.
Picture this, it's 2006, I am homeschooling my daughter, and I need to figure out how I am going to make a living. As I stand in my pantry, I pray out loud, "Lord what am I going to do? How am I going to make a living? All I have is this German Chocolate bar and an internet connection."
I decided to bake the cake, it's my favorite, maybe it'll make me feel better. While I'm baking I also decide to invite my neighbor over to brainstorm ideas.
A few hours later the cake is ready, the coffee is brewed, and my neighbor arrives with her Mom. Ah, the more the merrier! We chat, we laugh, and we talk for over an hour, but no solution.
As I'm walking them out the door the Mom says,
"Don't worry, just keep praying. You'll figure something out I'm sure." Then jokingly she says, "But I tell you what, if you make me one of these German Chocolate cakes, I'll pay you. That's a start."
While they giggled the gears started turning in my mind. She continued,
"You can't find cakes like this anymore. Even if you do, they're not scratch-baked. This cake is like how ‘Grandma’ used to make it! Nobody makes them like this anymore."
Long story short, we're sitting back at the table talking about all the cakes and desserts from days gone by. My childhood was flashing before my eyes. It was indeed a nostalgic moment that we all shared.
NICHE SELECTION
I spent the rest of the weekend researching southern cakes and their history. Not only did I find the perfect business idea for me I also found my niche. I was on to something.
Now that I had a valid business idea, I needed a plan of action!
My plan was simple: create a website, test recipes, and make money.
Going into my plan, I knew the website would take a few weeks to complete. In the meantime, I could test recipes and sell the baked goods to make money. And, I knew exactly where to sell them, fast! The 2-mile stretch between my house and the grocery store was several independent merchants selling goods. This is very common in California.
The night before I would make a variety of baked goods. The following morning, I would put on my apron, fill my biggest wicker basket, and walk the 2-mile stretch selling baked goods along the way.
I stopped everywhere, from merchant stands to office complexes, convenience stores, and even my church. Wow, I thought Father Franklin was going to buy everything I had! It was a good thing I stopped to see him because he allowed me to sell my desserts at church events and in between Mass.
This route was my weekly schedule for several weeks.
It wasn't long before I met a woman soliciting donations for her non-profit organization. She stopped me to ask about my baked goods. We continued to chat as she mentioned that she is at that store location every month. She invited me to hang out with her and sell my desserts. I took her up on the offer and increased my schedule to selling a few days a week.
As my schedule quickly became full with baking, selling, and orders, it was clear that my approach to selling was limiting. In other words, the business could only make money if I was physically going out to sell. I wanted to create a business that would generate sales on its own, even while I was sleeping.
One thought led to another as I am doing a little research, and sure enough, I was correct ~ other people are selling food online too. So I took a chance and posted my homemade German chocolate cake for auction on eBay. To my surprise, it sold for $75 plus shipping! Whoa, this is pretty much what I was making walking in the heat all day. A website to sell online clearly seems to be my next move!
I'm very excited about my first order. Everything has to be perfect. I know I can bake this cake like a pro and can envision it well-packaged so, I have no concerns.
Or so I thought... I was in California and the customer was in South Carolina. OMG! How the heck am I going to get this cake across the country?
I spent the next few hours researching couriers, the post office, UPS, FedEx, refrigerated trucks, you name it. The more I learned, the more I loved the idea that shipping cakes would give the business a national customer base.
I wanted to master this shipping option for my customers. I also wanted to know what I was talking about before contacting the customer. LOL
I couldn't find details on shipping cakes online, so I decided to figure it out on my own. Very few big businesses were shipping and artisan bakers still don't. But, I did stumble upon a needle in a haystack, and of all things, I found a wedding cake maker that shipped! What are the chances of that?!
She explained that she shipped the cake layers individually wrapped with instructions for the customer to assemble upon arrival. Although this method didn’t help me directly, her great encouragement and advice are the foundation I use to develop shipping methods for each type of baked goods I want to sell.
BUILDING A BRAND
My business idea was evolving into a clear and concise concept.
I was ready to contact my first customer to confirm the order and delivery. I thought long and hard about the email I was writing. Whenever I engage with customers I never want to appear unsure or unprepared. I make every effort to give the impression that my business is established, I am well prepared, as if I've done this a million times.
My customer responded with the requested delivery date, mentioned that the cake was for her dinner party, and suggested I include business cards to refer her guests. Well, you don't have to ask me twice! I shipped the cake and included business cards, gift certificates with a new customer discount, a gift certificate with a re-ordering discount, a thank you note, and a cake cutter as a freebie. I followed up with a shipping confirmation email to let you know that “something delicious is on the way!”. I wanted every step of the customer experience to be exciting. I had no room for errors.
For years I continued to include freebies to stay top of mind. An item that can remain long after the dessert is eaten, like a refrigerator magnet, or can be used, like a cake cutter, serving tray, dessert plates, or tongs, is a constant reminder of your business. Spending less than $2 on inserts and freebies proved to be an effective method for generating re-orders.
HIGH QUALITY PRODUCTS & INGREDIENTS
Emilie's cake arrived in perfect condition and she is elated, according to her awesome review. All I could think of was "It works! My business idea works! Okay, okay, calm down. Now, how can I turn up the volume?"
So, here’s what I did. To increase sales, I added items to the eBay store. Then, I set up four more as well. Now, I have five marketplaces working to build visibility and get customers for me. I was on autopilot, consistently generating one order per day.
I am still building the website; I wanted it to be engaging, fun, nostalgic, and have all the bells and whistles I could technically provide.
Several weeks go by, business is steady, and finally, my website is finished. The first thing I did was send an email announcement to all the customers I had gained from the marketplaces. I could hardly wait to tell them to come visit the new website along with a few new items. With repeat orders and new customers, sales doubled to two orders per day.
SEAMLESS SHOPPING EXPERIENCE
I think this is a good time to say, “If you want to be taken seriously, get a website!”
I am glad I made the website a priority. It changed the business for the better in so many ways. My intention was for the website to make things easier for me. As a result, it became a fun and engaging place for customers.
MENU ITEMS. Deciding on items and sizing options was the top priority. Pricing was easy because all items within a category were the same price.
PRODUCT OPTIONS. The ability to choose custom colors for chocolate-dipped items made the shopping experience fun and reinforced the fact that everything was freshly baked when ordered.
MARKETING & PROMOTION
This was the perfect marketing mix for my business, my time, and my customers.
I found marketplaces to be the most effective strategy for building my customer base.
Social Media was engaging but conversion was low. I posted delicious photos of each item with its history, fun facts, wine pairing, and direct links. Although the platforms were increasing visibility, upon taking a closer look at the results of my marketing efforts, I found that some platforms were driving traffic, some were driving paying customers, and the rest were attracting Looky-Lou’s.
I also added backlinks to my website wherever possible by creating free profiles to see what was effective for my business in bringing traffic.
My email list proved to be a powerful tool. Without question, the most valuable asset any business can have is an email list of interested and loyal customers.
And finally, I used website plugins to incentivize new orders and reward re-orders.
I started tracking the results of my marketing efforts from the very beginning. (hey…I’m an accountant.) Once I figured out what worked, I made sure to maximize what worked and eliminated what didn’t. So, believe me, I tried many other marketing tactics aside from these. Anything that is not listed above, I found to be ineffective or too time-consuming - for me. And I must add...I have never paid for advertising.
EXCEPTIONAL CUSTOMER SERVICE:
As long as I was ‘delivering the goods’ I could depend on customer loyalty.
You wanna'‘ hear something funny? In 15 years, I don't think I received 15 phone calls. My customers were able to do everything on the website. That tells me that I answered all the questions a customer could have on the website. Essentially, this is the purpose a website serves.
I gradually added categories to my menu over a two-year period. By the time I completed my fresh-baked menu, I had 15 dessert categories, from southern cakes to cake balls, to bread puddings with dessert sauces.
This may seem like I was hair-raising busy but, I wasn't, because I was organized:
I had a process for baking, packing, and shipping orders;
I had policies in place that supported a healthy cash flow and eliminate refunds;
I had automated marketing to ensure consistent visitors and high conversion.
Remember, this is an online-only bakery, so I only bake when customers order. Unlike a storefront bakery, I didn't have to bake products every day and hoped they sold.
With Dessert CAFE's business model, each day I would simply:
Print orders and file according to “Bake Today” dates
Pack and Ship today's orders by 10:00 AM for pickup at my door
Bake orders that we're shipping tomorrow.
I built a consistent income of three to four orders per day because of the website.
I maintained this schedule and a consistent income for a few years until I noticed something unique. Rarely did a customer order just one item; Maybe a new customer ordering for the first time, but I could count on every order having at least two items, and averaging about $125 plus shipping.
I remember thinking my ‘customers can't be just dessert lovers if they're ordering multiple items, there has to be a dinner party or gathering for a customer to need that much dessert’. So, you know me, I inquired.
Asking via email or phone helped in two ways:
I needed to add an ‘Arrived By’ date during checkout. This would allow customers to schedule when they want their order to arrive.
It helped to segment customers because they were more than dessert lovers, they were party planners, gift givers, business owners, and hosts/hostesses.
SCALING & DIVERSIFICATION
So how can I use this information to my benefit? Through attending to and meeting their needs.
Whether my customers were corporate clients, wedding planners, or gift-givers, I thought about how I might serve each segment of my target market. As a result, I created big-ticket items and packages to serve their large-quantity needs. By the following year, I was clearing 6-figures.
CONCLUSION
With the onset of the pandemic in 2020 I laid down my spatula and decided to travel full time. And yes, I miss the baking business. I’ve had four businesses since the ’90s, and for certain, the baking business was THE happiest business I've ever had!
While traveling full-time, I create content and tools to help new entrepreneurs start their businesses. So, I guess it’s safe to say I have the best of both worlds: traveling and baking!
Ready to start your Home Baking Business?
Let me show you how to make money doing something you love! However, this is not a baking course, this is a BUSINESS COURSE that divulges all my trade secrets in step-by-step detail.
So, whether you are starting a new or growing an active business, you CAN turn your love for baking into a six-figure business (or more!!).
My advice? Start with what you have and build from there.
With determination and creativity, you can build a very successful baking business from home.
As your home baking business builds momentum, you may need to explore opportunities to grow, expand, and scale the business further. Let’s talk. I would love to consult with you on your journey about ways you can ease into growth and expansion.
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