I think the original poster was discussing the fact that an "illegal" home baker does not go through the same hoops as a "legal" baker (home based or otherwise). There will always be those who "do cakes" out of their home - if they are licensed and subject to the same rules and regulations as a brick-and-mortar bakery, I don't think it makes much difference. A home baker will always have limitations in terms of volume (I have the space to do 12 weddings in a weekend, most home bakers don't) and there will always be customers who are looking for the lowest price. It's the people who don't get the right permits, licensing, training and are flying under the radar that are the problem.
Getting Fed Up with ILLEGAL home bakers - Page 3
I noticed you are in Dallas, TX. Here is the information on the Texas Cottage Food Law, which was passed.
It is not illegal for home bakers to sell out of their homes in Texas. I operate a cake business out of my home. I have a Food Manufacturers Licence through the State of Texas, registered my business through the county, have a state tax ID and follow all the guidelines of the Texas Cottage Food Law. I'm sure there are some at home bakers out there who do not follow the guidelines, but I follow them. My business and operations are legal. I can understand the frustrations of at home bakers taking away some of your business, but everyone has to start somewhere and if it ends up being at home, and it's legal, then there is nothing wrong with it. At home bakers also cannot do the sheer volume compared to a Bakery. I refer all my clients to local bakeries if my schedule is booked for the date my client needs. Supporting the local home bakers might be a good thing in your situation, because if they knew you supported them, they might send you some business. Bashing other people's businesses is not a good way to have supporters.
It will soon be legal to bake from home in Oklahoma. I'm pumped, as I'm an at-home baker.
Panini, After reading your original post is sounds like you are not doing much to market your product. You are doing everything the correct way and it seems these illegals are doing better nut because of pricing but because they are going where the people are. It is hard to compete with someone who has a friend or relative that can do the same thing for free or cost, but I gather we are not discussing that avenue here. Controling costs are hard enough when prices are going up and profits are going down, but getting your product out there is how you attract business. These crooks seem to be willing to market themselves and sounds like some are doing it in a shady kinda way but you need to look at getting your name in front of larger audiaences.