How to Keep Your Home Cake Business Afloat in a Tough Economy
Running a home cake business is a labor of love—but lately, that love comes with a higher price tag. With ingredients like butter, eggs, and flour costing more than ever, many bakers are feeling the pinch. If you're wondering how to stay profitable (or just keep baking without burning out), you're not alone. Here's how to survive—and even thrive—when everything costs more.
1. Track Your Costs (Even the Small Ones)
Every cake has a cost. Start tracking ingredients, packaging, electricity, and time spent. Use a simple spreadsheet or app to calculate your real profit per order. You may be surprised what’s actually making (or losing) you money.
2. Simplify Your Menu
Focus on your bestsellers and profitable items. It’s okay to say goodbye to that one complex design that takes hours but sells once a year. A smaller, streamlined menu helps you buy ingredients in bulk and waste less.
3. Buy Smart, Buy Bulk
Team up with other bakers to split wholesale orders or search for bakery suppliers in your area. Even switching to generic brands for some items can save a lot without affecting taste.
4. Raise Prices—And Be Honest About It
Don’t be afraid to charge what your work is worth. Be transparent: let your customers know prices have changed due to rising costs. Most people will understand. Your time, skill, and passion deserve to be valued.
5. Add Small Upsells
Little extras can boost your profit without much added work:
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Personalized cake toppers
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Matching cupcakes
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Delivery fees
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Rush orders
These mini-upsells add up.
6. Use Your Loyal Customers
Word of mouth is still gold. Ask your regulars to leave reviews, tag you on social media, or refer a friend. You could even offer a small discount as a thank you.
7. Explore New Income Streams
If you have the bandwidth, consider:
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Selling digital products (like stencil designs or tutorials)
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Teaching cake classes
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Collaborating with local cafes or event vendors
These side streams can bring in steady income with less ingredient cost.
8. Remember Your “Why”
This business likely started from your love of baking and making people smile. That joy is still there. It’s okay to adapt, take breaks, or shift your focus. You don’t have to go big to be successful—you just have to keep going.
You’ve Got This.
Baking in this economy is hard. But with smart planning, a strong community, and a few small changes, your business can still rise. 🍰
What changes have helped your business lately? Drop a comment below or tag us on Instagram @lacupelladesign to share your story.