Originally Posted by peppercorns
Hello everyone, I'm just wondering, The Home Cottage Industry, don't they regulate standard cake pricing for everyone? If Walmart, Costco etc, and other big commercial entities can price their cake so low what are your chances of competing with them? Shouldn't all the bakers unite and demand fair pricing for everyone ?
I don't think the two products are comparable- so the pricing won't be either -meaning a Walmart/Costco cake and a bespoke/artisan/custom/ type of cake. The Walmart product is industrial and the latter is not, so how can you can compare?
The walmart/costco cakes can afford to have prices that low as 1. they use low quality ingredients-and 2. they're giant corporations who are funding these bakeries who buy in bulk and for as cheap as you can get.
Also, not everyone can afford an artisan/custom cake and Walmart/Costco fills the demand for this type of client, but it's not the same quality product in any way. Some people don't care if their food is full of additives/ preservatives/chemicals etc and the price fits their budget..so that's fine.
I don't think a high quality bespoke cake maker is worried at all about Walmart/Costco being competition..they don't have the same clientele.
I believe the cottage food laws have a cap on the amount of gross annual profit that is earned- for tax reasons- but I don't believe regulating pricing is their concern- nor should it be.
Edited by cakefat - 2/23/13 at 12:55am