Originally Posted by foodpump
Home bakeries do have a higher rate of fires, and sanitary/storm sewer blockages. Home bakeries do not issue out receipts, therefore there is no trace of a transaction from the seller or the buyer--nothing for the tax man to grasp at. If and when any problem arises, the home bakery is gone--no proof that it ever was a home bakery, while a business always leaves a paper trail.
The fact that they pay no overhead is indeed the basis of this thread. Ingredients may be purchased within the same ranges as legit bakeries, but no overhead means that the home bakery charges less for the product, which puts them at an unfair advantage over the legit baker. This almost always upsets the pricing structure and leaves the legit baker out. True, a good and honest legit baker does not compare thier quality to Costco/Safeway, and because of this can charge a fair price, (which should reflect the quality of ingredients and workmanship) but when compared to the home baker is usually 20-50% more expensive, plus the tax.
In order to play fair, the playing field needs to be level, and it can't be when one pays commercial rent, insurance, property taxes, licenceing fees, minimum wages and above, packaging, visa fees, and taxes, and the other doesn't
Hope this helps
ok, now i am really missing the basis of this or something is getting confused into my own translation. i understand there are underhanded "business" owners out there. but, i find it highly unfair to lump all home bakers the same. i know plenty of home bakers that DO pay their taxes, they DO have receipts for every single sale they make, they DO pay for insurnce, property taxes on their own home, keep things sanitary, one even went as far as to remodel their basement into a commercial kitchen/storage area where their dogs were not allowed to be. they DO pay their fees and visa fees and packaging and what ever else.
this is how i plan to run my own bakery, just as legit as anyone other baker out there, except i won't have the glorified commercial building right off the bat. life is not fair in any direction you go. you will have your brick and mortar businesses and you will have your e-commerce businesses now and home businesses... as long as the law allows it, it will be done. for 10 yrs i have owned a cleaning business. i do not work from a brick and mortar.. i run my business from my house. yes, i am cheaper than a brick and mortar company, but, there is plenty of business out there for everyone.
i guess i am just not understanding why there is a fuss.. ok, i DO understand when they are operating in an illegal state/zone.. yes, i get the fuss then.. but, when it is legal in that area and zoned.. what is the fuss? i have been sitting here for the last 24 hours or so really thinking hard about this and weighing it out etc.. and ya'll make me feel like i am nothing unless i have that brick and mortar.. which, i was wanting some day, but, with a special needs child still at home, i need to start from home. now.. i am 75% sure i will give up this dream and probably give up baking period. this has left a sour taste in me. this makes me sad. i'm a home based business and i pay all my taxes, i pay for a cpa, i pay my insurances, bonding, employees, benefits, vehicles etc.. i pay out just as much as a brick and mortar except i do not have to pay a 3000.00 mortgage.. seems smart to me.. but, i apparently not because it is unfair to those that run out of a wharehouse or something.. it is petty..
as long as the person is running their business properly, it should not matter where they do it from. it really shouldn't. you will find people who are cheaper than others.. being competitive and undercutting.. thats the way of the business world. if we all cost the same.. why would there be so many of the same businesses in one town? it would be pointless.