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CAKE SUPPLY STORE. PROFITABLE??

post #1 of 10
Thread Starter 

There are 3 stores in my city and they are all located in the same area of town. I live across town and have found myself driving 40 minutes (one way in traffic) to get supplies.  I am considering opening a store in my area of town but would like to know what type of profits I can make before I leave my job to do so.  I know it all depends on location and rent but can anyone give me an idea how much I can make in a year?

post #2 of 10

Not sure how much you would make, but in my little town very little would be made from just cake supplies.  We only have AC Moore and Michaels (20 mins away), so I get my things on the internet.  Even if I had a store nearby, it would end up being more expensive than what I would pay on the internet, so that's something to consider.  You might get last-minute shoppers but "mom and pop" stores are few and far between anymore because they, unfortunately, are undercut (our favorite word!) by Amazon and Walmart.  I am sure if you open a shop you will ship products as well?

 

Good luck, in certain demographics it could work!

post #3 of 10
A standalone cake supply store would probably not be profitable on its own, most are subsidized by also being a licensed bakery and/or teaching classes.
post #4 of 10

Hard to say, I know the ladies who own the only one around, they make a killing. They don't teach classes or have a bakery, etc. They were teaching some basic decorating courses, but stopped, as they were getting burnt out. With the DIY and cake craze going on, they are always packed.

Big difference is they also don't have much in the way of competition.

 

The only other places for people to buy decorating supplies are Michael's, Joanne's and Walmart, so very limited selection.

 

I drive across a country border and over an hour to get there, I'm jealous of a town that has 3! haha.

Unless those are 3 very limited stores, I wouldn't be thinking of opening something like that up without the 'extras', like classes.

post #5 of 10
Quote:
Originally Posted by scrumdiddlycakes View Post

Hard to say, I know the ladies who own the only one around, they make a killing. They don't teach classes or have a bakery, etc. They were teaching some basic decorating courses, but stopped, as they were getting burnt out. With the DIY and cake craze going on, they are always packed.

Do you know what their profit margin was? Always being busy does not necessarily translate into profitability.
post #6 of 10
I actually have considered opening up a supply shop to help save funds to expand and open a full bakery. My town has a smaller WalMart, and Michael's & Joann Fabrics are a 20 minute drive to another town. There is a Cake Castle 2 hours away in another direction.
Looking at my area, there are a lot of bakers who could possibly keep me in business, but I think it would be tough to keep the doors open for long, with the competition of the internet. Also, there are so many different supplies to keep in stock. Tons of small specialty items that are expensive, and you'd have to take a chance that those items are what people would want.
I know some people who are just fine with what WalMart has to offer, even though the selection is so small! Looking at local cakers designs, it almost looks like everything is straight out of Michael's. All the details and colors from one caker to the next look straight out of Michael's. Makes me wonder if anyone would even want to try something new.
I do think classes would be a good idea, for extra income.
post #7 of 10
Quote:
Originally Posted by emendez View Post
 

There are 3 stores in my city and they are all located in the same area of town. I live across town and have found myself driving 40 minutes (one way in traffic) to get supplies.  I am considering opening a store in my area of town but would like to know what type of profits I can make before I leave my job to do so.  I know it all depends on location and rent but can anyone give me an idea how much I can make in a year?

Where do you live?!!?  Is it Orange County!??  I'll help you open!!!  

post #8 of 10
I live in a big city...and the people who own the shops said they really don't make that much money.
post #9 of 10
There's one in my town that I would say relies mostly on class income looking at the store and how many classes they run. They also have a lot of the famous bakers in doing expensive classesn and a webstore.
elsewhere.
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elsewhere.
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post #10 of 10
Quote:
Originally Posted by kikiandkyle View Post

There's one in my town that I would say relies mostly on class income looking at the store and how many classes they run. They also have a lot of the famous bakers in doing expensive classesn and a webstore.


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