This entry was posted on Tuesday, April 15th, 2008 at 8:35 pm and is filed under Bakery. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
This started off as a letter to a friend, but it you’re reading this, you probably have an opinion on the subject, and I want to hear it! The question is, what is more important, quality or affordability? Because gf-baking reminds me of that old saw, “You can get it good. You can get it cheap. You can get it fast. Pick any two.” Only instead of “fast,” just say “reliably.”
Dear H–; Wow. Thank you so much for sending me that link.
[Link to other gf-kosher bakery, not in CA, has been omitted.]
So let me ask you, please give me your honest opinion.
We always feel pulled from two directions. One side is our customers who are very into health food, either philosophically or because their kids need to eat a very “clean” diet, and they really demand top quality ingredients. And they understand, they compare prices to what they’re paying in Whole Foods or whatever, and they’re willing to pay for what they demand. For this group we have to use very “clean” oils - all organic, except for the Earth Balance margarine which is pretty close; no canola (again, except for the Earth Balance) not even in the pan spray; nothing hydrogenated, etc. We’re using organic sugar, for the most part, or natural brown (only the powdered is refined) and now we’re experimenting with agave and xylitol, etc. No artificial flavors, colors, preservatives, nada.
And then there’s the other direction. The other group just wants a cupcake that won’t hurt them, at a reasonable price. They literally can’t afford to pay $10 for four bagels because they’re made with 25% almond meal flour, or $50 for an 8″ cake because the frosting is made with organic non-hydrogenated shortening made from sustainable-y harvested palm oil. Frankly, they didn’t even know there WAS such a thing as sustainable-y harvested palm oil, nor do they care.
So. The first thing I see when I see this site, is the fact that they’re charging $4 for a nine oz. oat loaf, and we charge $6 for an EIGHT oz. loaf. (On the other hand, we’re changing the price from 2/$10 to 4/$18, so that’s only $4.50 each.)
The second thing I see is that their loaf has partially hydrogenated soy/palm oil (oy vavoy if we should use unspecified, usually gmo, soy!), refined sugar, and eggs. (Did you know many sephardim won’t wash on bread made with eggs? The same way matza made with eggs isn’t really matza.) Clicking around their site I see canola oil, I see VANILLIN! (Artificial vanilla flavor.) OMG! Do you know what we pay for GF-certified Madagascar pure vanilla extract?
But look at their prices!
So what do you think? Are we doing a disservice to the people who would be happy with vanillin?
One thing I will tell you. We cannot continue having our only large sliced loaf be made out of oats. It is not fair to the people who don’t care. Sunday a woman was going to buy a loaf, but she put it right back when she heard it was $12 for the 2-lb. loaf. I offered her one of the other breads (”They’re tastier, anyway!”) but she’s allergic to nuts and that’s the ONLY one that doesn’t have almond meal. (Anyway, I have to admit, at $10 for four pieces that weigh in total just over 16oz, the other breads are no bargain.)
Back to the drawing board on the sliced loaf.
April 16th, 2008 at 4:41 pm
I would love to talk to you more about this via e-mail (I’m crazy until after Pesach, but please do e-mail me). I have some feedback
Chag sameach!
April 16th, 2008 at 7:44 pm
THANK YOU! Thank you I will do that, in a couple days when things might be settling down. Chag sameach back atcha!
Which does not mean, anyone else, that you can’t ALSO give your advice & opinions. I need all the advice I can get!
April 24th, 2008 at 3:12 am
I think this is a fundamental business decision that is more about what ingredients you choose to use and why before you consider the secondary issue cost. If you have chosen to make your baked goods out of the healthiest and most flavorful gf ingredients, then that is your market niche. It’s what you as a bakery are all about.
Next you have chosen to be a kosher bakery. There are guidelines, ingredients and processes that must be followed in order to remain kosher.
Those two points are the major part of your business mission statement. Therefore all marketing and costs will derive from those choices. That is your niche and the market you have chosen to serve.
Should you change ingredients in order to obtain a lower cost to the customer…
1. Will you retain the customer base you have built already? Possibly not, as there are those who will leave as the quality of ingredients goes down.
2. Will you gain other customers as the price goes down? Yes, because there are those that will want/need to pay a lower price for baked goods,
3. A change in the ingredients will then change your mission statement. You will then need to change the focus of your marketing efforts.
The last consideration is cost. Cost flows from the mission statement that you have chosen - finest gf ingredients and being kosher. This is what your marketing should revolve around. This is what determines your cost of each item…
overhead (to include: building, salaries, insurance, utlities), the variable cost of food supplies, the costs of maintaining kosher certification, and profit. If that number gets you to 2/$10 for bagels…then so be it.
Market these points, change your image if you need to, get a new logo, etc. Everything someone sees when they walk into your bakery is a way to sell them on your baked goods over someone elses. Beautiful bakeries with wonderful foods aren’t around every corner and even less so for those who are gf and kosher. People will come for this…you might even want to consider local shipping. (Like Baby Cakes in NYC)
Just a few thoughts…you can email me if you like.
Sheltie Girl @ Gluten A Go Go
April 29th, 2008 at 6:15 pm
Hands down, no question - I’d rather pay the higher price! Gluten free goodies are getting easier and easier to find, but I’m willing to drive out to your bakery and pay the higher prices. Why? Because of taste and quality.
May 1st, 2008 at 11:14 pm
Wow, Sheltie Girl, again you astound me (a) with the thoughtfulness of your reply and (b) with the depth of your insight.
I think a little investment in our image might be in order. Thank you for the offer to take this up further.
Melanie, thank you, that means a lot to me. I guess we should just stay the course. I sometimes doubt myself, but I should just stick to the plan. It’s a good plan. Trust in the Trust, my eldest might say.