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💰 Value over Price - How to stand out in saturation.
In this week's Baking it Down Podcast - Episode 201 - Value Over Price, Corrie happened upon a "bomb pop Facebook Live" - and from a marketing standpoint, it's a fascinating business model.
It's a multi-level business model - but that's not what the podcast is focused on. The concept is this: the seller pre-sells 5 bath bombs for $20 a piece - bundle price of $100. Once purchased, she reveals what the bath bomb hides - a piece of jewelry.
After the reveal of each piece of jewelry, the seller exclaims, "Wow - a ring valued at $350! What a steal - you got it for just $20!" And therein lies the key - value. Because we all know that the costume jewelry wasn't worth $350, but value is relative to the perception of the buyer and seller.
In the words of the ever-successful Warren Buffett, "Price is what you pay; value is what you get." The same applies to cookies.
Instead of competing on price (an unwinnable negotiation when Oreos are in play), compete instead on value. By increasing perceived value, we can maintain and even increase price.
Increasing value can be done in many ways - just being readily available or responding quicker than the next baker can increase the perceived value of your clients. It sharpens the industry as competition strives to increase their perceived value over the next baker. The consumer wins, the sellers don't get complacent, and the invisible hand of the economy keeps the wheels turning.
It's increasing value across your brand that makes the big difference between you and your competitor - so always be looking for ways to "up the ante."
But if you'd like a list (because you know the twins like them a list), we've got one for you. Here's the big takeaway though: move every chess piece in "value added" before you move the "price adjustment" piece. Your price is your profitability - messing with that is a recipe for a bad bakery.
💰 1. Increased value through photography.
We buy with our eyes - and our eyes see good photography. By changing nothing but increasing the quality of your product photos, you can increase value without having to decrease price. With high quality standing, images, and backdrops - you can nearly have your cookies jump off the newsfeed and into the hearts ( and wallets) of your customers.
💰 2. Increase value through customer service.
My favorite way to increase value is by increasing the value of your customer service. Answering emails faster, having better ordering guidelines, handing refunds quickly and without opposition, heck - replying to Facebook comments in groups and keeping your branding updated on your page all signal to the client that you're putting a value on customer services (and thus you can charge accordingly).
💰 3. Increase value through decorating skills.
If communication ain't your thang, you can always work on increasing value by increasing your skill set. A better product is a part of perceived value. Couple a stunning product with stunning photography and you've got a match made in value heaven. Being able to accommodate more requests because you possess those skills is a way to carve out your place in a crowded market.
💰 4. Increase value through ease-of-ordering.
A better website, a better organization of products, better website copy, better check-out options, better order confirmation - all of these are methods you can use to increase your value perception within your market.
💰 5. Increase value through customer reviews.
Easy one - have enough other people proclaim your value that other potential clients can't help but increase their perception of you.
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🦫 Buc-ee's - A beaver’s marketing lessons.
In this week's Baking it Down Podcast - Episode 200 - Buc-ee's, Corrie and I took in all that the beaver gas station had to offer in our quick trip down to Nashville, TN this weekend.
If you've not been to the roadside bathroom stalls of your dreams yet (aka Buc-ee's Fuel Stops), you're missing out - it's... I don't know that words adequately describe what a Buc-ee's truly is - but I'll say it's fantastic and overwhelmingly so.
Which is why twin2 and I stood in awe for a solid 10 minutes soaking in all that is Buc-ee's - which makes it so talked about and thus an adequate topic for today's podcast. So yes - instead of "marketing nuggets," this week we're gettin' "beaver nuggets."
Now if you've been to a Buc-ee's, you likely know what I'm going to point out - but we're extrapolating the beaver's marketing to bakeries so pay attention (no - stop looking at the man dressed as a beaver - f-o-c-u-s).
🦫 1. Efficiency - endless fuel pumps (and potties)
If there's one takeaway from the land of to-go, it's the efficiency. If you've not witnessed a Buc-ee's endless line of fuel pumps - their goal is 0 wait times, and boy do they have it mastered. You pull in, get gas, find a spot to park in front of what feels like 3 main entrances, and then you walk into the land of "over-optimized" with endless bathroom stalls, endless soda dispensers, endless selection, and endless check-out lanes.
Much like "the buc," the baker can sharpen up efficiency with a more streamlined ordering process, a well-thought-out website, a great CRM, and a nice pick-up reminder campaign - the more you optimize, the better your client's experiences, the more competitive you are in your space.
🦫 2. Optimized - NO TRUCKS
Buc-ee's knows that by cutting out catering to semi-trucks, it can keep the flow goin' thus all Buc-ee's entrances have large NO TRUCK signage. Just like Buc-ee's, we can limit our offerings to the products we know generate cashflow. Yes - you'll be turning down orders, but in the long run, like the beaver, you'll be optimized for the products that bring a profit without bringing analysis paralysis to your client base.
🦫 3. Clean and Organized
Ever year, we do a "spring cleaning" curb appeal episode of the podcast (coming soon), but man does the beaver understand what clean floors and cleaner displays do for the buyer's mind. When I see clean restrooms I automatically assume the kitchen is clean. We can borrow from the Buc-ee's here too - keep your front stoop clean, do your hair and makeup on pick-up days (I struggle with this one), and light that vanilla-scented candle for when that customer pops their head inside.
You can organize your digital stoop as well - refreshed social media pages and a clean website have the same "I feel safe here" effect as a bathroom stall with plenty of TP.
🦫 4. Merchandising - refreshed product displays
This is geared more towards the vendor and farmer's market baker, but walking down the Buc-ee's chip aisle, all the products had been moved to the front of the stand. When I snagged a bag (who doesn't like a Ranch Dorito from time to time, amiright?) a Buc-ee's employee was right behind me to refresh again.
🦫 5. Welcoming - WELCOME TO BUCEES
And can we say that Buc-ee's employees are SUPER friendly!? I know it's likely a part of their job description, but every time I walked through the front doors (of which there felt like more than one), a very busy check-out clerk welcomed us each and every time. And bakers can do that too - be super welcoming in your emails, your social posts, your messenger responses, your reminder texts, and your in-person pick-ups. It makes a HUGE difference in how your customers perceive you and your bakery.
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🧐 Are Your Sales Slow? - Here’s how to shift that mindset.
For this week's Baking it Down Podcast - Episode 199 - Are Your Sales Slow Right Now?, we wanted to cover the question that pops up every post-Valentine's Day rush... the nagging feeling that your business feels slow and leads are down.
What gives? 😢 Why does that one baker post that this was their best Vday yet and yet you're nowhere near their "units sold" number? 😓 Is your business dying? 😖 Are you losing your edge? 😩 Is it market saturation? 😭 Is it... time to throw in the proverbial tea towel prop? 🧣
Here's the thing - feelings don't matter. 📉 Metrics do. Are you actually slow? And if yes, what did you water with your marketing efforts?
💦 Corrie pointed out that marketing is like a garden - and we tend to water certain goals. 🌱 If you wanted to teach your first Valentine's Day cookie class, guess what - 📉 your customs are probably down - 📈 because your classes are up.
I posted this in the Sugar Cookie Marketing group this week:
🔍 Perspective is everything. Focus on the right metrics. That's what today's podcast is focused on - focusing on numbers that actually have meaning instead of your feelings which can switch depending on the weather, what's for lunch, and if your spouse was nice to you this morning.
📈 1. Compare your "this year" to your "last year."
Comparing your "this year" to a random baker's "this year" is a recipe for disappointment. You all have nothing in common other than selling cookies. Comparing your market in rural Iowa to my Washington DC market makes 0 business sense. What does make sense? Comparing how your sales were this time last year to the same time this year. You'll be able to truly see if you grew that bottom line.
👉 Remember - your biggest competition is yourself yesterday - beat that baker!
📈 2. Compare $$ to $$.
Instead of comparing "how many customs did I sell," consider comparing, "how much money did I make." The secret is this: if you raised your prices, you may have actually sold less but made more. That means an increase in your bottom line and a decrease in labor costs = a business win. Money matters!
📈 3. Consider where you focused your marketing efforts.
I had someone reply to the thread I posted saying, "My sales are down from last year to this year, what gives!" Fortunately, I'd seen their posts that prior month. They had started teaching cookie classes! So yeah - their customs were down (another reason to compare bottom lines) but their class tickets were up. In fact, they'd sold out three Valentine's Day classes - THREE! So where they watered = where it grew. And of course, the counterpoint to that is if you focus on something new, something old may not be in the limelight as much.
📈 4. Look at metrics, not feelings.
A lot of times I see bakers "feel" that sales are slow. Feelings are unreliable - heck, they say if you need to appear before a judge, do so right after lunch because judges with full bellies tend to be more lenient than judges who have grumbling tummies. Focus on metrics. Meta gives us a ton of free, easy-to-use metrics. Google Analytics also allows us to gauge without the grump meaning we know exactly what happened and why instead of goin' on an unreliable hunch.
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❄️ Weather with Heather (and Corrie) - Weather policies 101.This week's Baking it Down Podcast - Episode 198 - Weather with Heather (and Corrie), we talk about the very reason why the Baking it Down Podcast was a day late this week - ❄️ bad weather.
🌪️ They say the only job you can guess wrong every time and still be employed is being a weatherman - 😭 and that's what makes weather events and cookie pick-ups a match made in refund hell.
So - how to predict the unpredictable? 🌧️ Here are our hot takes on cold weather in this week's podcast (🌡️ also yes, I (Heather) wanted to be a weather person because I thought it would be a neat radio tag like to say, "Weather with Heather on the 8's."
❄️ 1. You need a weather policy right now.
Your best friend when it comes to handling bad weather is a weather policy - 📝 a simple page on your website (ideal), a post on your Facebook Page (okay), or even a Google Doc (easy) that states what your plans are in the event of inclement weather can help you set expectations before the flurries fall. If you wait to enact a weather disclaimer after the bad weather hits, 😠 you've got a recipe for a bunch of angry reviews falling from the fingers of unhappy clients.
While you're at it - have a separate policy for both 🍪 pick-ups and 🎟️ classes since both can be different enough that one policy won't necessarily apply to both a pick-up order and a class attendee.
❄️ 2. No one reads - so repeat, repeat, repeat.
Making a single post to your Facebook page about a class cancelation for weather isn't going to cut it. 👓 No one reads (and even if they did, the algos don't let posts reach them anyways), so make sure the weather communication is across the board.
I'm talkin' r-e-p-e-t-i-t-i-v-e as in:
In the world of communication, less is never more - more is more.
❄️ 3. Get in front of weather events.
🥶 When weather is in the forecast, start messaging clients before it starts precipitating. 🧊 You'll know you've not beat the storm communication when it's your clients asking you what the plan is. Don't be that baker - get to them before they start to panic. It'll show that you've got this handled and aren't panicked yourself.
❄️ 4. Offer Refunds / Credits for Classes | Freezing for Pick-Ups
When it comes to cookie class cancelations, I like to offer a full refund or an incentivized option to roll into the next class (and save on their Eventbrite fees). Here's our take - if you signed up for a class that got canceled and you couldn't get your money back, how would you feel? "Do unto others as you'd have them do unto you" - the Bible (🙏 and these bakers).
Now more tricky - 🧊 communicating to the custom cookie order client that freezing a cookie is actually an effective way to keep it fresh. And you'll be able to accomplish this by stating that in your "weather cookie pick-up policy." 🥶🔥 The thought of "frozen thawed" for the average user signals a lack of freshness, so the words you use here to sell them on a delayed pick-up are important.
❄️ 5. Take their orders to them & have insurance.
🚫 Your homeowner's insurance policy will deny that claim made by the lady who slipped on your front porch picking up her cookie order so fast, it'll make your bosch spin. So have COMMERCIAL coverage like Flip Insurance.
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🕵️♂️ Susan Reed - A scammer's lessons in marketing.
Baking it Down Podcast - Episode 197 - Lessons from Susan Reed (now watchable on YouTube, don't forget), we wanted to talk about common scams - but not in the way you'd expect.
We want to find out what marketing tactics make scams so effective. And we've come up with 5 takeaways for lessons we can steal (on brand) from Susan Reed and company.
If you're unacquainted with ol' Suzy, she's the name for a common scam where an event planner reaches out asking for a very specific set for her upcoming corporate event. She names a place, time, and location - ironically exactly in the same city as the unassuming baker.
Once you take her order, she pays you. Which would all be well and good but she makes a mistake and accidentally overpays you - by just a hundred bucks (give or take) on top of the nearly $1k she intended for the baker. The baker is notified of the mistake and returns the overpayment.
A few days later, the baker's bank reports the entire transaction as fraudulent, the e-check bounced, and the baker is out the refunded amount. But the marketing question lies in what made the baker believe the lie? And that's today's podcast.
⚠️ 1. Be Consistent.
If there's one thing Susan Reed is, it's consistent. And in marketing, you have GOT to be consistent. Corrie and I say folks shouldn't worry about an oversaturated market - they should worry about their lack of consistency because it's inconsistency that will lead to someone gobbling up your market share.
The unfortunate part of inconsistency is that its results are not immediate. 📆 That break you took all of January? 😭 You'll see those slower sales in July - when we are truly fighting for each and every baked buck.
⚠️ 2. No is not the Final Answer.
In marketing, "no" just means you've not found a way around an objection. 🛑 "No, we're not looking to switch bakers" should sound like, 👂 "The deal you pitched isn't good enough yet, what else do you have to offer?" A salesperson sees no as the interlude to a yes. Same with Susan Reed. She emails thousands of bakers and keeps emailing - ❌ even if 1000 told her no - 1️⃣ because all she needs is 1 yes.
⚠️ 3. Cold Outreach (on repeat).
Cold outreach ain't for the faint of heart, but it works! 🥶 Cold outreach means reaching out to someone you have no prior relationship with (be careful when cold emailing, there are some laws around this). But reaching out to a 🧊 cold contact is how they become a 🔥 warm contact willing to talk business. Look at Suzy - every baker she reaches out to is a cold contact - it's because her pitch is so desirable that she gets bakers on the hook for hundos.
⚠️ 4. Concise and Clear Communication.
The reason why so many bakers fall for Susan Reed's antics is because her initial email is so clear and concise. ✍️ She tells you what she wants, when she wants it, how she wants it, what she'll pay for it, and how to deliver it. It's such a great approach to emailing: clear and concise.
⚠️ 5. Steal. LoL Jk. Efficient Follow-Up.
Finally - steal. 🦹♂️ Just kidding. Don't do that no matter how tempting. 📧 But the final point is efficient follow-up. While the "Susan Reed" emails are likely a script running to thousands of bakers at all times, it seems like the follow-ups are actual scammers, and they get replies because they reply so quickly. ⏰ They do this on purpose - the less time you have to see if they're scammers, the more likely you are to fall prey to their schemes.
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🤐 Words Matter - How copy can compel cash.
Baking it Down Podcast - Episode 196 - Words Matter (now watchable on YouTube, don't forget), we were a lil' late - and that's because Heather thought she had a bad night's sleep but was actually 🤢 sick-sick and never left her quarantined room for 3 days and nights.
But better late than never, the show must go on... Friday. The message still stands though - your words matter (even if they're three days late).
✍️ Copy is best summarized as any writing that's meant to help you sell or advertise something. That could be the caption on your Facebook post, the text in your email (hey, like this one!) or the ad you took out in the local kids PTA newsletter.
If it's written to sell = it's copy. 💸 And if it's copy, it has to be intentional. Gone are the days of, "Thanks for your order, Cheryl," and here to stay is compelling copy intended to get a person to part with their cold hard cash.
💊 There's no "magic copy pill" that, if swallowed, moves mounds of money (trust me, if there was, I woulda swallowed 1,000 pills by now 💊💊💊). But there are strategies you can mix and match to serve as a guide 🗺️ to finding copy that compels - meaning copy that when read makes people want what ya got.
🪝 Start with the Hook
Consider the hook - you know, that first part they read before social media companies "truncate" (aka anything behind the ...See more text) the post. The first few words in a post that capture the reader's attention to stay beyond just glancing at that stunning photo.
Examples of hooks could look like:
Hooks, 🐺 much like the boy who cried wolf, have to be used sparingly, or eventually you'll exhaust your audience. Additionally, hooks don't have to be dramatic. A simple hook like, "Okay guys - let me give it to ya straight" can even capture someone's attention. 🛑 Don't be afraid of using emojis on social to stop that scroll!
📝 Follow a Formula
Copy formulas can help guide your vibes. I use them so often that I don't even realize they've become a natural style of writing for me. AIDA is a great one to start with. Attention, Interest, Desire, Action. Let's try it out:
"🆓 Get a FREE transfer sheet! How about a free sheet every week? All you have to do is sign up! ✅ Here's the link: [link]"
Let's break that down by the AIDA formula:
The AIDA formula is a fan-fav because it walks the user through a really short copy funnel with a clear call-to-action. It's a great foundational formula to start with - highly recommended.
📞 End with a Call
End with a Call-to-Action that is (don't worry, I hate calling on phones too). Call-to-actions (also called CTAs in marketing jargon) tell your customer where to go and what to do (like give you their money).
Some CTA examples for bakers would look like:
Copy missing a clear call-to-action doesn't accomplish a goal. So tell your audience what you want them to do next.
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🚫 The TikTok Ban - And the diversification of your marketing.
In this week's Baking it Down Podcast - Episode 195 - The TikTok Ban, continuing with last week's theme - ❌ the TikTok ban went into full effect on Saturday night for... ⏰ like a few hours?
It was odd as the platform kinda shut down features over an hour then a pop-up blocked access for some, then others, then it came back, but not. That said - it did happen though, which is the topic of conversation in our podcast (which - ahem - you can now watch on YouTube - heads up, you still won't be able to read these lips unfortunately).
😤 "Never downloaded TikTok and never will..." no - that's not what we're talking about. 👂 And frankly, if you're saying this, you definitely aren't using TikTok as a lead source which means you're even less diversified.
What we're talking about is this: 👋 You don't own any platform from which your business gains leads - and that's evident by this TikTok ban.
📧 Your emails can be blocked, your Facebook page hacked, your YouTube shut down, your Instagram suspended, your TikTok banned, and your best word-of-mouth lead source can move away.
🥚 So what do? 🧺 We diversify is what we do.
📊 First, we need to understand our current marketing landscape. Yours won't look like mine. 🤔 Where are most of your leads coming from? If you don't know, start adding that question to your intake form - the data you get from it is worth its weight in marketing gold.
🔍 Once the data comes in - how diversified are your lead sources? If 90% of people are coming from your Facebook page - 📈 guess what, you're not diversified. I'd like to see at least 5️⃣ 5 channels (3 if you're too busy) bringing you in leads. And note - not all those channels can be owned by the same company (ahem - Meta). 👻 Remember, not only did TikTok play Houdini, but so did CapCut (the editing software folks were using even outside of TikTok but also owned by TikTok's parent company, Bytedance).
💻 We'll also want to focus on a website, an email list, and a Google Business Profile. Yes - again, stuff we don't technically own, but hey - they work a lot different than social media algos, and they're owned by 🗽 American-based companies that aren't just Meta. Remember - it's all about d-i-v-e-r-s-i-f-i-c-a-t-i-o-n.
🥚 The less "single egg basket" our marketing is in, the more likely we are to weather any cybersecurity storm. 🥚🥚🥚🥚🥚🥚
⏰ Email aka a newsletter is an even better backup tool to have in your marketing chest because it's one of few marketing avenues that still work chronologically (meaning the emails are listed in the order they are received) unlike social media which is dictated by fancy hard-to-understand algorithms where only the best content gets the viral win.
If you only have time for one social platform, 2️⃣ try to borrow from the time spent on that sole source of leads to start working on a second social profile - that way if your primary source goes dark, 😢 you're not left in the red (bottom line, 💔 I mean).
As marketers, 🥺 we're merely slaves to the whims of social giants and social issues - and roll with the punches we must. 🪦 The graveyard of social media that "once was" grows every year, and leaves creators and businesses who were too invested in a single lead source in the dust. ⚰️
👂 Snag this podcast on any major podcast player (Spotify, Apple Music, Audible, Amazon Music, or watch it on YouTube) by searching for Baking it Down - Episode 195 - The TikTok Ban.
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✔️ Meta Verified - The pros / cons of the blue check.
In this week's Baking it Down Podcast - Episode 194 - Meta Verified, TikTok is about to have a big, public breakup with its avoidant soon-to-be ex, the United States. And whether or not we like this coupling, it comes down to the Supreme Court's decision - who needs reality tv when you've got this?!
As we see content creators scrambling to dust off their Instagram backups, it may be a good time to consider standing out among the masses with Meta Verified.
Meta Verified is that neato 🔵blue check mark that you see next to some pages and profiles (go check out Sugar Cookie Marketing's Page for a real-life example). And it's more than just an icon, actually - which makes it a possible contender for your marketing budget in 2025.
Quick backstory on 🔵blue checks: Back when Twitter was, well still called Twitter, accounts that were verified as professional or famous profiles received a 🔵blue check next to their handles to signify that this was the legitimate profile of the business or creator. It was a manual application process and it was hard to get accepted into. Elon buys the failing Twitter and converts it to X takin' the 🔵blue checks away and offering them as a subscription to anyone who had about twenty bucks.
While verification is still required, the exclusivity is long gone. Meta followed suit a few months later for personal profiles and mid-2024 began offering 🔵blue check subscriptions to business pages.
Meta Verified pages do get some added perks though - so let's take a look at them (we'll focus on the plan I paid for to test this - the Business Plus plan - although all the plans include the 🔵blue check).
But first - let's see the pricing for these Verified tiers:
Yeah - so, like not chump change at all - and this is per profile meaning that yes, Facebook and Instagram are considered two profiles even if the Facebook and Instagram accounts represent the same business and are connected. But the good news - there's a yearly discounted option, a bundle
✅ Meta Verified Business Plus - $44.99
You're reading that right - you can actually email or chat with a support rep (for that one profile) if you sign up for Meta Verified. If you upgrade to Premium or Max, you can talk to someone over the phone - a rarity with these social media giants.
But there's more - you also get "enhanced" profiles on Facebook (if you pay for Verified on that platform) or on Instagram. Instagram will give Business Plus subscribers the ability to add pictures to their bio links as well as link 3 additional accounts in the area under the profile bio.
Facebook pages with the 🔵blue check will show up in horizontal scrolls in feeds as "Recommended Meta Verified Businesses." Hey - it's like a free ad included in your not-free subscription. Beggars can't be choosers, right?
Impersonation protection is a neat feature - basically no one can spoof your Business page. Does that mean that past hacked pages have a chance of being reunited with their original owners? Not a clue - but it's worth a shot if you've completely lost access to your Page.
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👶 SMART Baby Goals - Taking small bites out of a big goal pie.
Onesday Thursday? Sorry - ❄️ we had a big snow storm (big for the Washington DC area is anything over 3 inches, and we ended up with 8 - 10 inches, ☃️ so rest assured, my car won't be clean again for 2 months).
In this week's Baking it Down Podcast - Episode 193 - SMART Baby Goals, 👶 we cover a better baby way to tackle big goals - and that's by not making them big, but making them rather small.
Let me jump right into an example of my own. ✍️ Last year (and for the last 5 years before that), I had the goal to learn Procreate (the iPad app that redefines digital drawing). 🎨 I'd bought the top-of-the-line iPad, the fancy Pencil, and Procreate... and proceeded to say each year, ✏️ "I'm going to learn to draw."
But my goal wasn't S-M-A-R-T. It was too broad. 🤓 S-M-A-R-T stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
My "I wanna draw" was not specific. 🤷♀️ Draw what? It wasn't measurable because you can't measure "can I draw yet." And because it wasn't broken down into steps, it thus became unachievable, and "sometime this year" was not a viable option for "time-bound."
My goal was running before it could crawl, and thus it never got any traction. We have to make it small (baby) before we can make it big. 🏃♀️💨
🤱 A lot of time, we see bakers say BIG goals - 🤑 "I want to increase sales by 50%," or 🔟 "I want to teach 10 cookie classes this year." Love them - but those are really easy goals to say and really hard goals to beat.
What if we made these goals smaller? 👶 Baby...ier? What if "I want to increase sales by 50%" was, "I'd like to sell 1 more dozen each week this year than I did last year." Still pushing you, but definitely S-M-A-R-T because it's smaller and a lot more specific, we can measure it, we know we can do it (hey, what's 1 more dozen), it's relevant to our business, and it's time-bound (each week).
🎨 That's what I did with my lofty "learn how to draw" goal. Instead of "take 1 Procreate class a week," I switched it to, "Just ✨open✨ the Procreate app once a day." Whatever happens after that - it counts. Because the goal is so small and easy, it's easy to tackle, but it's not impressive.
And therein is the key - 🔑 small goals aren't sexy, but they are attainable, and completing 100 small goals this year will get you so much further than not completing 1 giant goal.
🧠 Small is Smart. 🤏
Here are some small crawling goals that you can use to get your goals to toddler stage.
👶 1. Social Media - Consistent Posting 2x per Week
👶 2. Financial - not "all the money" but rather "1 extra dozen per week"
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👜 Workin' Burkin - How kelly hands kompetition.
In this week's Baking it Down Podcast - Episode 192 - Workin' Birkin, we're following a pretty funny story taking over TikTok.
You see - 👜 Hermes is a line of really high-end luxury items like purses and belts. And if you have a Birkin bag, you're looking at tens of thousands of dollars alone. But the king of the Birkin bags? The Kelly Bag - a bag that you have to be invited to be able to buy... 💰 for almost a hundred thousand dollars.
But last week, ⏰ a TikTokker discovered that Walmart has launched its own Birkin of sorts... a knockoff the internet how now dubbed the "Workin' Birkin" from "Walmes."
Hilarious doesn't begin to describe it, but what's even more interesting is the marketing lessons we can pull from 🤑 Walmart's mass-produced copycat Kelly.
Is Hermes going to shift its marketing strategy to compete with the behemoth of Walmart? Is Walmart testing its entry into the luxury designer bag market? No and no - here's why.
👛 1. Different Market Segments
Hermes sells to really rich people. Walmart has built a brand on the savvy money-saving shopper. Their market segments never overlap. The person who wants an authentic Kelly bag won't even glance at a Walmart's sliding doors. The price-conscious Walmart shopper ain't gonna be clickin' to Hermes website. Their market segments aren't even in the same parking lots.
And you shouldn't worry when a new baker starts posting in your community groups - they're not sharing your market segment. You're years into this - your skills are honed, your prices are set by your defined costs. You know exactly what it costs to stay in business, and you charge a profit accordingly. The new baker? They can charge a lower rate because they do produce a different product that does attract a different buyer. Don't you worry about them - the market takes care of everything.
👛 2. Supply and Demand
Hermes could ramp up production to compete with Wally World's massive production empire. Scrap the hand-made and sub it out for the mass-produced, right? WRONG. The more supply available of authentic Birkins, the less valuable each Birkin becomes. That's the law of supply and demand. The more supply, the less demand for it. The more demand, the less supply around to fulfill it. It's the invisible hand of the market at work.
👛 3. Costs Covered
You can't work for less than it costs to make, right? You'd be losing per order. So let your costs dictate your pricing. Same with the newbie. They can charge less because their labor rate is lower, they have lower indirect costs, and they don't have as much overhead. You - you can't. You have that Eddie to pay for, that Universal Bosch to keep powered on, and that Heavenly 70 Amerigels to use. You gotta cover your costs + profit - no if, ands, or Birkins.
👛 4. Exclusivity means Money
The higher your prices the more exclusive you're able to make your order inquiries. Hermes hand-makes each bag - taking up to 20 hours to produce. They can charge more for their lack of availability. That translates as "exclusivity" to your marketing. If Birkin can slap a $100k price tag on something that a grocery bag can functionally replace - why are you so worried about pricing lower than your competition? Price HIGH. Get EXCLUSIVE high-paying customers. We aren't selling food - we're selling a luxury edible product.
️👛 5. Perceived Value in Luxury Pricing
Finally - the perception of value creates money. Oreos are cookies. Your custom-decorated dozen is cookies. Why can you charge 20x the price of Oreos?
From the publisher's feed
👋 Hey - Heather and Corrie here with the Baking it Down Podcast with Sugar Cookie Marketing (a group on Facebook full of sugar cookiers turned business owners).
🍪 We're here to help…
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