Olga Khodyko I started making cakes 6 years ago. Now she makes painted gingerbread and custom cakes. But in recent months her business has begun to lose customers.
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Why did you decide to become a pastry chef?
I am an engineer-technologist of the production of bakeries and sweets. Total over 10 years of work experience. I developed recipes, came up with a design and it was close and clear to me. But since she has never worked with her hands in production, she watched with pleasure and interest how they make this dessert-decorator. I thought I would never be able to do it myself, but it all started during maternity leave when I decided to make a cake for my baby’s birthday and it became a masterpiece for everyone. Later, I took this seriously and, in addition to sweets, I started baking gingerbread cookies and coloring them. As a result, I developed my perfect gingerbread recipe, which my clients loved. So since 2016 I am obsessed with sweets at home, and I have 2 years working full time.
At the moment it is not absolutely stable. I lost almost all corporate clients (companies closed, someone changed their location, someone’s financial situation worsened). Revenues have fallen since March. On March 8, for example, there was no single corporate order. Since I could make good money with gingerbread, the income is quite modest. In March, there were 3-4 orders, as in a normal month, with an average check of 50-100 rubles. The average price for a gingerbread is 5-6 rubles. It can be higher or lower depending on the complexity. I make cakes, but the costs are very high, so it is not entirely profitable to just make them. In one month, income hardly reaches 1000 rubles. I still pay tax on this money – about 77 rubles came out last month, taking into account the benefits for large families (I have three children).
Will there be a price increase?
A couple of months ago, I raised the cost a bit due to a very sharp rise in prices for inventory, raw materials, packaging. The price for 1 kg of cake is now 50-55 rubles, but it was 48-55 rubles. Due to the fact that I do not rent premises, I have no employees, the price is 10-20% lower than that of my colleagues who work in the store.
Who are the customers?
Mostly mothers. They buy cakes for kindergartens, schools, just as a gift for children. Brides order wedding gingerbread. I also work with organizations and companies.
Problem number 1. Customer breach
When I sent offers to my clients until March 8, the answers were: “Unfortunately, we are no longer in the country”, “I really want to order, but my financial situation does not allow me”, “My husband’s company stopped working, we do not know what to do, so next time for sure. ”Also, the coronavirus has cut off acquaintances with various people, events have been canceled. hard, that now is not the time for vacation.
Problem number 2. There is no support for advertising and information
I do not have the financial means, for example, for targeted ads on Instagram. Now the income is very volatile, so there is simply nothing to invest in promotion and risk. I periodically displayed ads on Instagram. A year ago, I decided to take a chance and use the services of a targetologist. I took 2 weeks of testing, unfortunately, no layout worked.
What it takes to develop
needs Information support. I am ready to offer my product for advertising and listen to all suggestions. In addition, I do not have an understanding and vision for the business process, I need help in business development to move from the “home” format to the “commercial” format. To do this, I would like to get expert advice. You also need a partner or a small team of helpers. Maybe an investor.
Dreams and plans
The main dream create a creative workshop! In the heart of the city, bright, spacious. With a special baking area where I can be creative without being distracted from housework. I would also like to put into broadcast both the master class and the corporate team building. I want to be a sought after mentor and have a team.
You can check out Olga Khodyko’s work on her Instagram page – @ ox.cakes.