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do people really pay £3 for a bog standard brownie?


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Old 17-12-2016, 09:07
TheDC
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That costs pennies to make?

I know people pay that for something that's special like raw / organic / gluten / sugar free (like http://www.nestandglow.com/healthy-r...-fudge-muffins and they have expensive ingredient. but for a bog standard tray bake it seems bonkers!
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Old 17-12-2016, 10:00
keeping_it_real
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My thoughts exactly, I'm considering spending that at Christmas on some Patisserie Valerie cakes but they are something special. Much as I like her I think Alana's cakes look very 'home made' and something anyone could knock up for themselves, you could make your own tray bake for £3.
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Old 17-12-2016, 10:17
TheDC
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My thoughts exactly, I'm considering spending that at Christmas on some Patisserie Valerie cakes but they are something special. Much as I like her I think Alana's cakes look very 'home made' and something anyone could knock up for themselves, you could make your own tray bake for £3.
Exactly! Someone on a another thread is comparing her to a brand of posh chocolates. Patisserie and chocolatier is a world apart from what Alana is trying to do.

Many deli will just make their own as they want to keep all that juicy markup for themselves.

It's a cupcake business really, that anyone can set up.

I like her, but the idea just isn't very good. She doesn't have much vision.
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Old 17-12-2016, 11:33
walterwhite
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Judging by her profits then obviously lots of people will pay that much. The issue is whether she can find enough independent places to sell them to scale the business.
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Old 17-12-2016, 11:53
francie
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Judging by her profits then obviously lots of people will pay that much. The issue is whether she can find enough independent places to sell them to scale the business.
Agree.
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Old 17-12-2016, 12:19
tim123
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at "events" yes

at normal high street shops, even specialist ones

probably not

The idea that she can scale her business AND keep her profit margins is for the birds

tim
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Old 17-12-2016, 12:23
tim123
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My thoughts exactly, I'm considering spending that at Christmas on some Patisserie Valerie cakes but they are something special. Much as I like her I think Alana's cakes look very 'home made' and something anyone could knock up for themselves, you could make your own tray bake for £3.
did you see the way she made them?

Mixed up crumbled cocko-digestive bickies with melted cooking chocolate

Any small independent retailer with half a brain could make his own, if he wanted to
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Old 17-12-2016, 17:07
Sweet FA
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Not just the price but seeing how she made them really put me off....
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Old 17-12-2016, 18:12
Cats_Eyes
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Exactly! Someone on a another thread is comparing her to a brand of posh chocolates. Patisserie and chocolatier is a world apart from what Alana is trying to do.

Many deli will just make their own as they want to keep all that juicy markup for themselves.

It's a cupcake business really, that anyone can set up.

I like her, but the idea just isn't very good. She doesn't have much vision.


Not much vision with " the F*ck Off Doormat " either. Because apart from anything else not one big group would stock such crap so sales will be, let's say, "limited. "
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Old 17-12-2016, 18:17
spkx
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She currently sells them at 'artisan foodie events' where you can get away with charging that much.

No chance of getting them at that price into shops.

They're not even vegan, veggie, nut-free or gluton-free either.

They're something literally anyone could make so god knows why even a small shop would buy them.

Rocky road, another of her 'bakes' is just melted chocolate and butter mixed in with crushed biscuits and marshmallows.
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Old 17-12-2016, 18:18
BillyBatty
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People will also pay £2.60 or whatever for coffee, which costs pennies to make at home
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Old 17-12-2016, 18:31
spkx
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People will also pay £2.60 or whatever for coffee, which costs pennies to make at home
But coffee shops don't pay another company £3 to make a cup of coffee for them to sell on.

Currently Alana's high margins are because she's making the cakes herself and then selling them directly to the public via her website and food stalls.

Her new business however would be selling to the trade.

Even if the shops she sold to were able to shift these brownies at £3 a pop, they wouldn't be paying her that figure to produce them.
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Old 17-12-2016, 18:49
Steve9214
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Big retailers usually take a 40% margin, plus you have to pass audits, comply with food standards etc all of which costs money.

Alana makes huge margins as she has bog all overheads, no premises costs etc
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Old 17-12-2016, 18:50
Cats_Eyes
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She currently sells them at 'artisan foodie events' where you can get away with charging that much.

No chance of getting them at that price into shops.

They're not even vegan, veggie, nut-free or gluton-free either.

They're something literally anyone could make so god knows why even a small shop would buy them.

Rocky road, another of her 'bakes' is just melted chocolate and butter mixed in with crushed biscuits and marshmallows.


And if a top pastry chef had made it then it would cost a fortune and people would pay it - and say how wonderful it was
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Old 17-12-2016, 20:11
spkx
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[/b] And if a top pastry chef had made it then it would cost a fortune and people would pay it - and say how wonderful it was
Well that's how she gets away with at these hipster food markets.
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Old 17-12-2016, 20:33
trebanos
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But coffee shops don't pay another company £3 to make a cup of coffee for them to sell on.

Currently Alana's high margins are because she's making the cakes herself and then selling them directly to the public via her website and food stalls.

Her new business however would be selling to the trade.

Even if the shops she sold to were able to shift these brownies at £3 a pop, they wouldn't be paying her that figure to produce them.
Sugar is a partner in Susan Ma's business

http://www.tropicskincare.com/

She sells online, house parties and at markets. But to the best of my knowledge, not to the trade.
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Old 17-12-2016, 20:35
trebanos
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Big retailers usually take a 40% margin, plus you have to pass audits, comply with food standards etc all of which costs money.

Alana makes huge margins as she has bog all overheads, no premises costs etc
If Alana is selling to the public now, she will already be compling with food standards. Dunno what you are on about with 'audits'.
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Old 17-12-2016, 20:47
spkx
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Sugar is a partner in Susan Ma's business

http://www.tropicskincare.com/

She sells online, house parties and at markets. But to the best of my knowledge, not to the trade.
So? Alana's business plan is to sell to the trade.

I can't imagine how pyramid selling of brownies would ever work, even if it was Alana's plan.
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Old 17-12-2016, 21:19
Cats_Eyes
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Well that's how she gets away with at these hipster food markets.
What do you mean " gets away with it " ?

She sells good products at an excellent margin - they call it business.
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Old 17-12-2016, 21:48
trebanos
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So? Alana's business plan is to sell to the trade.

I can't imagine how pyramid selling of brownies would ever work, even if it was Alana's plan.
Not all of the winners have ended up doing their original idea.
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Old 17-12-2016, 22:39
Zarla
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I don't think she should sell to the trade. Instead, she should employ a few more weekend staff members so her cake stall can be a presence at different festivals and outdoor events, particularly in the summer.

Amusing to see that her Belgian Chocolate Rocky Roads had cooking chocolate in.
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Old 17-12-2016, 22:59
Steve9214
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I don't think she should sell to the trade. Instead, she should employ a few more weekend staff members so her cake stall can be a presence at different festivals and outdoor events, particularly in the summer.

Amusing to see that her Belgian Chocolate Rocky Roads had cooking chocolate in.
This is the problem with small sole traders who think they can upscale.

You are supplying food products so making a few brownies in a converted outhouse is one thing, but selling to retailers is a whole different ball game.

Like Luisa who had one cupcake shop - she has no idea of the investment and due diligence required to supply other traders.
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Old 17-12-2016, 23:31
Dix
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Judging by her profits then obviously lots of people will pay that much. The issue is whether she can find enough independent places to sell them to scale the business.
If she sets up business in an expensive area, then she might do well, but can't see that happening in average areas, as people could buy them in supermarkets as less than her prices, or bake them themselves I don't think her products are that special, as I've seen much better quality products than hers. But to me, she wants to make that fast buck at any price! So shopper beware!
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Old 17-12-2016, 23:33
TheDC
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did you see the way she made them?

Mixed up crumbled cocko-digestive bickies with melted cooking chocolate

Any small independent retailer with half a brain could make his own, if he wanted to
It reminded me of "cooking" I do with my pre school relatives.

If she's really making a net profit of 40k, she's reached the limit IMO.

Was at Christmas markets in bristol today and her cakes would be about 1.50 here.
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Old 17-12-2016, 23:41
Dix
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[/b] And if a top pastry chef had made it then it would cost a fortune and people would pay it - and say how wonderful it was
I've seen kids making them using those ingredients. But a Top Pastry Chef would have his/her own business, or part of a high Hotel Chain, where anyone with money might want to stay, and eat their food. Could be that's her plan, where she could rip off people, and be happy doing it.
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