How much money you make in a bakery business depends on several factors. Who your customers are affect your profit. So does where your bakery is located. What you sell has a major impact as well. Wedding cakes for example, cost as much as $ 15 per slice while muffins as little as a $ 1 each.

Definition of Money
You have to look at what exactly "how much money can be made" means. If you're talking about sales, meaning the amount of money received from customers in exchange for your baked goods, that's a top level number. You could make $ 1,000 a day from sales and end up broke, because your expenses for wages, ingredients, equipment and shipping, cost more than the $ 1,000. You also must consider whether you're getting immediate cash for those sales or if your customers can take up to 90 days to pay. Retail customers pay immediately through either cash or credit card but grocery stores and restaurants take much longer to pay.

Location
Baking out of your home means you do not pay for a retail site, which means your costs are less. You may have to buy more than one oven to keep up with demand and have your kitchen inspected and passed by the health department, but you are not liable for a monthly lease payment.

Wholesale
Providing baked goods for a restaurant, caterer or gourmet grocery store means you'll receive less revenue for those goods than if you offered them to the public at a retail price, often twice that of wholesale. That's because the restaurant has to make a profit on your desserts. There's an upper limit to how much restaurant customers are willing to pay for a slice of cake. The upside is you can significantly decrease your marketing expenses. You only need five or six restaurants to buy from you as opposed to sometimes 100 retail customers a day.

Retail
Selling directly to the final customer results in higher revenues because you can charge more. You receive all the profit. You may or may not have to have a retail location. For example, if you sell wedding cakes you could simply work with a wedding planner, wedding reception site or put your business cards or brochures in bridal gown stores. You go to the bride's home with sample cake slices and a portfolio of different cakes you've baked. If you focus on one type of baked goods, such as brownies or muffins, it's possible to set up a cart in a shopping mall that offer these goods rather than a full-fledged bakery shop.



Source by Dee Power