Shortbread cookie company?

70
7
Joined Oct 9, 2017
Hi,

I was thinking of doing a shortbread cookie company and was wondering it feasible to do it?

Open to public, wholesale and online/ship across canada

Is it a profitable enough business?
 
4,280
1,167
Joined Dec 18, 2010
That's a great question. What is your marketing strategy? What is your production capacity?
 
70
7
Joined Oct 9, 2017
That's a great question. What is your marketing strategy? What is your production capacity?

Going to do interesting flavours that uncommon with shortbread cookies like add tea flavours, espresso, cheese, fruits, veggies, and spices combo

The cookies can pair up with tea, coffee and wine beverages..great as a host/ess gift to pair with the beverage

Hoping to get local wine, coffee, tea, cafe and gift shops to carry my cookies

Don’t know if I want to do this aspect as well which is to make desserts using shortbread cookie dough and sell it to the public like shortbread jam bars, tarts out of it... which means more production and more people to hire

Don’t know my production capacity
 
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Joined Sep 26, 2017
Definitely profitable if your products taste good and you do everything else right. Shortbread can be made ahead and keeps for a long time so it's a lot easier to manage than, say, cakes. Walkers Shortbread company is a big hit worldwide.
 

Cdp

97
19
Joined Aug 31, 2017
here in Aust their is something called Byron bay cookies,

these guys charge a motza and guess what

there in every café across AUS

to be honest not that special but well marketed
 
70
7
Joined Oct 9, 2017
Definitely profitable if your products taste good and you do everything else right. Shortbread can be made ahead and keeps for a long time so it's a lot easier to manage than, say, cakes. Walkers Shortbread company is a big hit worldwide.

Yes! Exactly ... way less food waste, less start up cost comparing to a cake business, less employees, less space require mean less rent

Will check out walkers

here in Aust their is something called Byron bay cookies,

these guys charge a motza and guess what

there in every café across AUS

to be honest not that special but well marketed

Will check them out
 
4
2
Joined Oct 12, 2017
Hi,

I was thinking of doing a shortbread cookie company and was wondering it feasible to do it?

Open to public, wholesale and online/ship across canada

Is it a profitable enough business?
I would suggest that the answer to your question on profit will be based on the complexity of your cookies and if they are unique enough to command a price with sufficient profit margin. If your shortbread cookies are decorated with royal icing and theme shapes which are sometimes called shortbread and also sugar cookies, the labor is hard to offset with price. You can check ETSY.com to see the multitudes of cookie shops for comparison purposes. Although you didn't specify the type of kitchen (commercial or residential), another consideration is the provincial regulatory scheme. In the states, some of the "cottage laws" regulate baked goods prepared in homes prohibit mailing. (The intent of those regulations is more friends and family business rather than wholesale) I hope this is helpful.
 
70
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Joined Oct 9, 2017
I would suggest that the answer to your question on profit will be based on the complexity of your cookies and if they are unique enough to command a price with sufficient profit margin. If your shortbread cookies are decorated with royal icing and theme shapes which are sometimes called shortbread and also sugar cookies, the labor is hard to offset with price. You can check ETSY.com to see the multitudes of cookie shops for comparison purposes. Although you didn't specify the type of kitchen (commercial or residential), another consideration is the provincial regulatory scheme. In the states, some of the "cottage laws" regulate baked goods prepared in homes prohibit mailing. (The intent of those regulations is more friends and family business rather than wholesale) I hope this is helpful.

it unique enough just with my main basic dough because most shortbread cookies have more harder texture and flour tasting cookies where my cookies are the opposite that is more buttery and break down smoothly while eating it.

i'm not doing royal icing or theme shapes... most people I know told me that they don't care for it ... they like it straight up or eat it with their tea or coffee or offer a box of it as a gift

just simple circle shape cookies and different flavours for each one

I'm going to check with the government next monday regarding to the regulations and see what I can or can't do
 
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Joined Mar 8, 2015
I have a pastry chef in my cafe that will be making shortbread cookies. She mailed me some to try and they tasted great but didn't ship well. The raspberry jam in the centers all had "cookie dust" from the shipping on them. None of the cookies broke which was great. Probably cause she really packed them well. Put bubble wrap between the cookies and the container empty space so they wouldn't bounce around. These were just for me to taste so it was fine. They weren't being sold to customers.
 
4,474
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Joined Jun 27, 2012
Same here gg... not quite up to snuff so I backed off.
Everyone has at one point received one of those huge round tins of what I not so lovingly call fauxbread.
Those peeps have the art of shipping down to a T but it costs them in QC .
I don't trust a cookie that has no flavor except off white and NEVER breaks or crumbles.

Now if ya wanna make some real money do (here ya go Tom) cookie favors.
As big as your head and lovingly decorated.
The only product I ever made that came with the danger of blood clots in my legs from sitting too long.
My OCD was screaming for death to release me.

mimi
 
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991
Joined Oct 10, 2005
Shipping across Canada.....

At some point you will realize that the costs associated with s&h ( packaging, 3rd parties like paypal or visa) will be greater than the actual costs of the product.
The money is in wholesale--either in food stores or in cafes. With stores you will need barcodes but have great long term relationships, with cafes you MUST do c.o.d.
Choose your poison......
 
70
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Joined Oct 9, 2017
Shipping across Canada.....

At some point you will realize that the costs associated with s&h ( packaging, 3rd parties like paypal or visa) will be greater than the actual costs of the product.
The money is in wholesale--either in food stores or in cafes. With stores you will need barcodes but have great long term relationships, with cafes you MUST do c.o.d.
Choose your poison......

wholesale locally? basically do my own shipping and not use postal service?

I thought of wholesaling to coffee roasters/companies, tea, wine, cafes and independent gourmet food stores

how do you price out for wholesale because I know I have to sell it below retail price... or just compare to other local cookie business and see what they are selling it for.

but is it better to sell directly to customers with the higher profit margin even though I don't sell as many comparing to wholesale but it got smaller profit margin. Also with wholesale I have to make a lot more cookies to make up the difference and more expenses to pay employees when the business get bigger or can't handle the demand
 
5,551
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Joined Oct 10, 2005
You forgot to factor in the time to package those small orders and the hassle factor of getting them shipped, and getting paid. Each order.

You also forgot that your ingredients and packaging supplies become dramaticaly cheaper as your volume increases--especially packaging materials.


Look, what's more important on your car, the gas guage, or the speedometer? For me its the gas guage.

Yes small personal orders are more profitable, but will you get orders enough to cover your costs?

Just because I only have 20 years experience running my own business doesn't mean I'm always right. But if you talk to any baker, (or anyone in business, actually) they will tell you the money is in wholesale. So if its money your after, focus on that. If its providng excellent customer service, focus on the small orders.

Hope thus helps,
 
70
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Joined Oct 9, 2017
You forgot to factor in the time to package those small orders and the hassle factor of getting them shipped, and getting paid. Each order.

You also forgot that your ingredients and packaging supplies become dramaticaly cheaper as your volume increases--especially packaging materials.


Look, what's more important on your car, the gas guage, or the speedometer? For me its the gas guage.

Yes small personal orders are more profitable, but will you get orders enough to cover your costs?

Just because I only have 20 years experience running my own business doesn't mean I'm always right. But if you talk to any baker, (or anyone in business, actually) they will tell you the money is in wholesale. So if its money your after, focus on that. If its providng excellent customer service, focus on the small orders.

Hope thus helps,

right now I'm just starting small by renting a kitchen 2 or 3 days a week while I got my day job during the week

what is the difference between wholesale and direct sales for packaging?

I'm thinking of doing 12 small cookies in a heat sealed plastic bag and put it in a box

is wholesale like a big bag of cookies and put in a big cardboard box?
 
5,551
991
Joined Oct 10, 2005
Difference is bar codes. No retail store will take new products without a barcode and a best before date. An ingredient list and nutritional table are also neccesary. Cheaper and less labour to have all that printed on the box than it is to apply stickers to the box. For a run of a thousand boxes, maybe 70 cents ea. For a run of 5000 or higher of the same boxes, maybe 20 cents ea.

How to price? Figure out your costs and mark up. No retail store will want your product if they can't mark up at least 35%, its a delicate balance....
Don't have anything nice to say about distributers, but they usually want their mark up of 30-40%

Hope this helps
 
70
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Joined Oct 9, 2017
Difference is bar codes. No retail store will take new products without a barcode and a best before date. An ingredient list and nutritional table are also neccesary. Cheaper and less labour to have all that printed on the box than it is to apply stickers to the box. For a run of a thousand boxes, maybe 70 cents ea. For a run of 5000 or higher of the same boxes, maybe 20 cents ea.

How to price? Figure out your costs and mark up. No retail store will want your product if they can't mark up at least 35%, its a delicate balance....
Don't have anything nice to say about distributers, but they usually want their mark up of 30-40%

Hope this helps

understandable on retail store situation... quite a bit of hurdles to go over

seem easier to deal local or small businesses to start like coffee roasters, tea, catering, wine people, restaurants etc

wow thats a major price difference on boxes... I was wondering if it look unprofessional by doing a clear plastic bag, heat seal it and stapled a fold over paper tag (business name, logo and flavour on the tag) on the excess plastic above the heat sealed line.

I found a rental kitchen, rate is $18/hr, dry storage $15/month and fridge storage $25/month .. in canadian currency
 
5,551
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Joined Oct 10, 2005
Bags sre not a good idea. Cookies crumble and the crumbs will smear the bag. Also, you will observe many people poking and prodding your product through the packaging.

Cheapest option would be a clear clamshell type box, even clear beverage cups with dome. Next best would be kraft type cake boxes.

Smaller businesses are great to start off with, but they won't do a lot of volume.

Hope this helps
 
70
7
Joined Oct 9, 2017
Bags sre not a good idea. Cookies crumble and the crumbs will smear the bag. Also, you will observe many people poking and prodding your product through the packaging.

Cheapest option would be a clear clamshell type box, even clear beverage cups with dome. Next best would be kraft type cake boxes.

Smaller businesses are great to start off with, but they won't do a lot of volume.

Hope this helps

i don't know man ... hard to say no to the bags ... under 2 cents each

not a fan of clamshell or beverage cups because they don't have a tight seal to make the cookie shelf life lasts longer. I like to do the heat sealed bag at least for the shelf life and maybe do the kraft cake boxes depending on the price

was thinking something like this that I saw on the net ... https://www.elmhillcookies.com/shop/ ... I'm curious about that metal punched holes that hold the paper to the plastic bag.. what is it?
 
5,551
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Joined Oct 10, 2005
Rivets. Easily done with a pliars type tool.

Yes bags are cheap, but they offer no protection. And in any case you will need ones with a cardboard bottom so they sit stable, and those aren't 2 cents each.

Ah, nothing like the stench of the heat sealer and melting plastic in tbe early morning.....
 
5,551
991
Joined Oct 10, 2005
Oh, heat sealing won't do anything for shelf life. They'll stale with or without a welded seal. Might help keeping odours and moisture from entering, but does nothing for shelf life.
 

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