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Hi, I have an idea for a side business and was hoping for some feedback.
I read a book called freakanomics and a guy started selling bagels that he bought in office locations just out of a box and the honor system. He would swing by and replenish the goods and take the money.
So....
I kinda like baking.
So...
I want to bake scones, cookies, and maybe some other items like bagels and leave them in a box with the honor system.....I think I can make the money work and sell them at a price that would bring in more than their cost....assuming I sell about 75% I think I break even, because I would offer the businesses half the profits for letting me place the foods....But if I sell less than that...I would think I would lose money because of buying ingredients etc.
I am kind of ambitious, because I am a bit poor...
I would want to ask my boss...
My boss owns a tourist store, a restaurant, and several vacation rental properties..... I am 18, I've worked for him for 3 years, and he has always liked me....a catch is...I just recently started dating his son and I don't want to ask him to do this if he feels like he can't say no.....
Is it okay to ask my boss given the circumstance? Or should I try to cold call a store I don't know with some free samples?
Do those locations sound okay to have this placement if so?
I think it would be easier to have a smaller portion item that went for $1 than a larger portion item that sold for more, because it seems like change would be easier to make for some random guy dropping money in a box. Is that wrong?
I think my homemade appeal would help sell more too, especially if I personalized it.
I remember Panera did something where at some stores you paid what you could for their items. They closed down after a while because they were unprofitable....
You should go with this! Another suggestion would be to speak to the managers of a local gas station/grocery chain that sells coffee (we have Cumberland Farms and Stewart’s). Perfect for what you are suggesting. Then, if it takes off, let your boss know about it and see if he would like to participate. Be careful mixing money with friends or family. Best of luck to you!
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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At an office where I used to work we had a vendor doing that with snacks, and after a few months we cancelled it because so many people failed to pay. The "honor system" to many means "free stuff."
I want to bake scones, cookies, and maybe some other items like bagels and leave them in a box with the honor system.....I think I can make the money work and sell them at a price that would bring in more than their cost....assuming I sell about 75%
If your time is worth $1/hour then this will work. Realize this is a low barrier to entry endeavor; any illegal alien can undercut you. Also, are you going to have health department and FDA approval?
First check the regulations for selling food commercially. In Oregon, you must have a commercially license kitchen and there are regulations about what sort of flour you can use and everything has to have a nutrition label.
I suspect that many other states are the same.
You can only sell baked goods made in a home kitchen for non-profit activities like a church bake sale.
Now, if you can get legally set up to sell home baked goods, I have made this observation: there was a lady who made really lovely sandwiches and she would go around to various business carrying a cooler and selling sandwiches at lunch time. She had a regular route and the customers would be waiting for her and counting on her.
Also a man doing the same with commercially made candies and nuts that he bought in bulk and repackaged in small servings. He had a much larger territory because he only visited each location twice a month, not daily.
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