Posted in cookies, lessons, Life

We learned a lot at our first vendor event

After about a year of making custom iced sugar cookies for birthdays, showers, weddings, and holidays, we decided to sell as a vendor at a fall festival. The one we picked was a big one, with a big up front fee, and a big historic crowd. We baked, decorated, and wrapped up hundreds of fall and Halloween cookies that were sure to sell like hotcakes.

That event never happened. Weather predictions, which in Florida are always accurate (lol), called for severe thunderstorms that weekend, so on Wednesday we got the message that it was rescheduled for February. February? None of what we baked would keep till or sell in February. We got our fee back, but what about all those cookies?

We hurriedly discounted our inventory for some of our faithful customers and were able to sell a decent amount of product. But driving through town, we saw a sign for another fall festival at a local private school. When I stopped in the front office, they told me they had no room for any more vendors. But when I stopped back a second time with some sample cookies, we were in!

The festival was just four hours for a single day, probably a better first time event for us. The morning was gray and drizzly, but we headed over with our tables, tent, and cookies, setting up in the school parking lot with lots of other vendors.

We got our tent, tables, banners, and cookie displays set up in about forty-five minutes. I thought our set up looked nicer than most of the others around us. Maybe I’m partial, but we had nice colors, displays, and banners. In any event, we were ready for the onslaught of cookie lovers!

We didn’t sell out, but we didn’t do badly for our first time out. Our most popular cookies were traditional ones, like peanut butter, chocolate chip, snickerdoodle, and one with M&Ms. We sold some of the printed and decorated iced sugar cookies, but not as many as we thought.

Many people came by and asked, “Are those all cookies?” Yeah, that’s all we sell! I guess some of the square cookies printed with fall designs looked like coasters. We also had lots of princesses, unicorns, and mermaids, along with sports themed cookies. Add to that lots of “drip” baseball, soccer, and football designs, and we had everything kids were looking for.

A good number of people asked about custom orders and took business cards. We saw several families I haven’t seen in years with kids who had grown up so quickly. I think the best part of the day was talking to people from the school, the community, and other vendors.

As I expected, we learned a lot from our first vendor event.

Most people paid with cash. But I also learned how to work the hardware to accept credit card payments. Some used their card for a two dollar purchase.

Basic cookies sold well. The seasonal cookies didn’t really make a splash. Cute cookies did ok. It’s really hard to figure out what people will buy. When you’re selling a product with a short shelf life, that’s important!

Our set up and tear down was easier than we thought. There are a few things we want to get for a better display next time.

I enjoyed this first vendor event. I liked talking with people and talking about our product and how we made everything. We didn’t expect to make a lot of money. Some of the day was for exposure, to secure future orders.

We asked a lot of people what we should make and how much would sell. The many different answers we got didn’t help at all. I’ll bet any vendor has great days and awful days, without much rhyme or reason. It’s all part of the adventure.

If you’ve read this far, you probably want to learn more about and order our cookies. Just go to backseatgracebakery.com!

Posted in lessons, Life

A classic: the cookie scam

Our cottage bakery got an email asking about a cookie order for a corporate event. Other bakers with similar businesses had described these larger-than-usual orders as the real moneymakers.

Our excitement turned to disbelief once we read his request: “25 dozen of a 4-pack of cookies of different flavors with the company logo printed on it.” I did the math and wondered, “Three hundred four-packs?” That’s 1,200 cookies!

Our three-and-a-half inch printed iced cookies start at $4.00 each. He going to spend $4,800 on cookies? That’s too much. Let’s offer 2-1/2 inch cookies at $2.50 each. It would still be a $3,000 order, but maybe that’s what he wants.

That offer was too much for the event budget. He countered, “How about twenty dozen cookies?”

We replied, “We can do 240 three-inch cookies for $3.00 each, a total of $720.”

He was happy with that order. So were we. That’s still a lot of cookies! Could we deliver to the conference venue in a neighboring town? We said we could.

I emailed him the invoice so we could start on the order. He replied, “Can I pay by e-check?” Of course. Our invoice takes you to a payment site with credit card and ACH options.

But his idea of an e-check was totally different than ours. He wanted to write out a check, take a picture of it, and email the picture to us so we could deposit it using our bank’s mobile deposit option.

Red alert! Defcon 5! Danger, Will Robinson! Are you kidding? There’s no way I’m doing that. A picture of a check does work like the real thing, as long as the bank clears it. There’s the catch. It takes up to a week for that kind of deposit to clear.

I learned that this is a set-up for fraud. Someone sends you a check for more than the agreed upon amount. All you have to do is send them a check for the overpayment. But when their check doesn’t clear, they disappear with whatever money you sent them.

I told him I could only take payment through our payment portal. He said he couldn’t do that, but looked forward to working with us in the future. When I looked him up on the corporate website, guess what? No such guy.

This all happened a few months ago. When I looked back at his emails, the first subject line “Cookies Enquiries” should have clued me in from the start. His request for different “flavours” should have tipped me off, too.

Apparently scams and fraud are business as usual for small businesses. Don’t ever let your guard down.

Posted in business

How do they stay in business?

Photo by Tem Rysh on Unsplash

I spent last weekend exploring Nashville, Indiana. It’s a small town filled with great little restaurants and shops. As I wandered through boutiques, bookshops, and toy stores, I couldn’t help but wonder, “How do these places stay in business?”

Each was a large store with a huge inventory of merchandise. The overhead for such a storefront would have been expensive. These businesses would have to sell a lot to stay in business.

I did a little research to find out how these little shops stayed in business. Here’s what I learned.

  • Many of these businesses are just expensive hobbies. They lose money every year, but the owners enjoy interacting with the customers.
  • Some businesses exist on a few large sales or a busy tourist season to survive. The rest of the year, they sell virtually nothing.
  • Other businesses have strong online sales that pays for a physical presence in a small town.
  • A few people own the whole building and rent out most of it. This makes up for their unprofitable business.
  • Some of my reading suggested that these businesses are covers for illegal activity. I guess that’s possible, but I have my doubts.
  • One bike shop owner explained that he made most of his money making repairs, not selling bikes. Makes sense.

I still don’t understand the business model for most of these small stores. Without many customers or sales, how do they stay in business?

Posted in business

That’s a business? That’s crazy.

Daily writing prompt
Come up with a crazy business idea.

The problem with crazy business ideas is that many of them already exist.

As I walk by a shop in Saint Augustine that sells nothing but olive oil, I think, “That’s crazy. Can you sell enough olive oil to pay the rent?”

The person ahead of me in line at the convenience store is buying a candy bar to deliver to an Instacart customer. That’s crazy. Someone will pay to have a single candy bar delivered to their home.

Some people make a living frequenting thrift stores in search of items they resell online. The amount of money to be made in resales is crazy.

A Jamaican guy with a truck, a few friends, and a twenty-four foot extension ladder drives through our neighborhood every once in a while, offering to trip palm trees. We’ve hired him a few times, and as one guy scrambles up the ladder with a running chain saw attached to his belt, we say, “That’s crazy!”

The last time I purchased a thirty dollar electric toothbrush, the self-serve checkout screen asked me if I wanted to purchase the extended warranty. Yes, that’s crazy, but I’ll bet some people buy the purchase protection.

And yet, as soon as I start to think, “There’s nothing new under the sun,” another crazy business idea pops up in a strip mall, online, or knocking at my door. Some are legit. Some are scams. Some are profitable. Some aren’t.

So I should be able to come up with something crazy.

  • I’ll come by your house once a week to make sure you have extra rolls of TP in all your bathrooms. You’ll never get caught short and have to yell across the house again.
  • I’ll come and declutter a room (or rooms) for you. I’ve gotten pretty good at this. I’ll get rid of all the stuff I know you don’t use or need. You won’t even know it’s gone.
  • I’ll write a poem you can insert into a card for a birthday, anniversary, Valentine’s Day, or other special occasion. You can sign it like it came from you. (I’ve gotten pretty good at this, too.)
  • I’ll get in touch with your children and remind them to call you on your birthday, Mother’s Day or Father’s Day. It’ll be completely confidential. If they get offended, there’s no connection to you and it’s no skin off my nose.

The craziest business of all may have been Crazy Eddie’s consumer electronics chain that was known for entertaining commercials and massive fraud. Family Auto Mart out of Orlando was pretty crazy, too.