You may think that Daisy Cakes are just like any other cake, but the company and its owner have earned their place in the baked goods hall of fame.
Daisy Cakes are expensive because the company only uses the freshest ingredients. Additionally, each cake is handmade and packaged. Quality control is in-house. The owner takes pride in each order. Orders are specially packaged for shipping and currently ship to all 50 states in the United States. From her storefront to quality bakeware, it makes sense why Daisy Cakes are expensive.
1. Farm Fresh Ingredients
Daisy Cakes has chosen to use only the freshest ingredients for its cakes. Not only are they fresh, but the brand sources everything locally, in the United States.
Typically farm-fresh ingredients rely more on human labor than machines to grow and harvest.
This can drive up the cost of fresh ingredients, and the price must be absorbed by the cakes purchased from the brand.
2. Production Costs
Each cake at Daisy Cakes is made fresh and by hand. Each cake carefully follows a family recipe.
They are hand sifted and made from scratch. Currently, Daisy Cakes has produced over 120,000 cakes since being in business, and in one year, it has made over 18,000 cakes. That’s around 350 cakes per week.
At one point during the business, company founder Kim Nelson tried to outsource part of the baking, resulting in subpar products and a massive hit to the company.
Therefore, all these cakes are made under her supervision for quality control. The large volume of cakes they produce and the staffing it takes can drive up the final cost of a Daisy Cake cake.
3. Processing Time
Baking cakes is not quick work. It takes time to gather the ingredients, prepare the batter, carefully mix, and have it baked.
Since all this is done in-house, it can take quite a bit of time to process as many cake orders as the bakery gets.
Considering that Daisy Cakes are custom-made for each order, the processing time directly affects the final cost of the product.
4. Special Kitchen Tools
When baking a cake in your kitchen, you need your spoons, a mixer, and your oven. That is not the case for major bakeries, especially when they must turn out a high demand for their product.
Bakeries must have special ovens and special kitchen tools to create their masterpieces.
This means there must be a fund within the business for these kitchen tools. Sometimes, these tools need to be repaired, replaced, or upgraded.
Since these products are essential for running and maintaining the business, it would make sense that the final cost of the cake bears this in mind.
5. Storefront Costs
Any business with brick-and-mortar premises has rent and other expenses. Having a storefront means that you are paying a mortgage or paying rent each month to occupy the space your business is in.
Additionally, business costs include utilities and other overhead costs. Each part of the business must be paid for with what the company sells. In this case, it is cakes.
The cakes must make enough profit to keep the storefront open, thus directly affecting the final cost of the product.
6. Shipped With Love
Daisy Cakes prides itself in its shipping services.
Each cake can be shipped to all 50 states in the United States. Shipping can be expensive in its own right, but at Daisy Cakes, each cake is shipped with love.
This means that each cake is hand packaged , frozen, packed in a cooler, and dry ice to keep the food cold as it travels.
Each part of the package carries a cost with it. With the extras attached to their shipping, the cakes must be able to recoup the costs for the business to remain profitable.
Daisy Cakes is a popular bakery that started with a historical recipe. Given the integrity of their fresh products and in-house quality control, it makes sense that they have a more expensive product.
When you add in the extra expenses it takes to keep a storefront open, any company must consider what it will take to remain profitable and how they can continue making their products while staying in business.
Furthermore, with specialty shipping and a handmade cake, you will pay a premium. The bakery keeps all production costs in-house as well. However, the promise on the other side of that transaction is delightful.
Today, Daisy Cakes continues to stay in business and is growing in popularity. They are currently bringing in around $1.2 million in revenue annually. Even though the cakes are more expensive, they must be worth the pay!