Offering Special Prices to Friends and Family

If you have launched your own home bakery, it is likely that friends and family were some of your first customers. I know that was the case for me. In fact, I had been baking for them long before I began baking for the general public in my area. Thus, once I officially opened my home bakery, the lines became very blurred when it came to friends and family. I was unsure of how to suddenly begin charging them and, to be honest, I wasn’t even sure if I should charge them. I felt uneasy about the topic as a whole and I had no clear plan. Before too long, it became apparent that it would be difficult to draw the line between who I considered a “friend” versus an “acquaintance” versus a “friend of a friend”, etc., and I knew that eventually I’d just be back to baking for free for everyone.

Creating a Plan for Friends and Family

Eventually I sat down and took the time to really analyze how I could bake for friends and family while still operating a profitable business AND ensure that my friends and family saw my business as just that….a real business. The conclusion I came to was that I would always bake for my immediate family for free (or at least for a very low fee depending on what they needed) and, in my mind, I had very clear parameters for who I considered immediate family. Ultimately, my spouse and my children made the list. My parents and my siblings do not live close but if they did, I would include them also. 

For everyone else…aunts, cousins, friends, friends of friends, coworkers, etc., I created a Friends and Family code in which I could offer 20% off my regular prices. I know that sounds a little cold so please know that I didn’t go out and announce this…I just made this determination in my own head. I had to have clear parameters for myself or I knew I wouldn’t stick to it. Then, when someone asked me if I could make them a cake, or if they could order (6) loaves of sourdough bread, I knew I could tell them my price and then follow up with “but, of course, you are on my Friends and Family list so please take 20% off of that”. I also used this discount code often for repeat customers or anyone else that I felt had really supported me and my business. 

Please know that you can operate this aspect in any manner that you’d like. You can make the discount smaller or larger than my standard 20%. You can bake for free for some people or ask them to simply cover the cost of ingredients. Whatever works for you and I found that sometimes I adjusted the discount depending on the person I was baking for. All in all, I have a large family so I just greatly needed guidelines asap before I found myself in a very unprofitable situation.

Why Offering Special Pricing to Friends and Family is a Great Idea

What I eventually found though is that having special pricing for friends, family members, and loyal customers is actually an excellent marketing strategy. In hindsight, here’s what I know now that I didn’t know when I first started:

1. Strengthening Bonds: Offering special pricing on your baked goods to friends and family fosters a sense of closeness and strengthens your relationships. Sharing something you are passionate about and have poured your heart into can create memorable experiences and moments of joy. It’s a way to express appreciation for the support they’ve given you while also treating them to your delicious creations.

2. Feedback and Referrals: Friends and family members are often your most honest critics and reliable sources of feedback. By offering special pricing, you encourage them to try a wider range of your baked goods and provide valuable insights. Their honest opinions can help you refine your recipes, improve your offerings, and address any shortcomings. Furthermore, their positive experiences may lead to word-of-mouth referrals, introducing new customers to your bakery.

3. Testing Ground: Introducing new recipes or experimenting with flavors can be a risk. By offering special pricing to friends and family, you create a safe environment to test out these creations. They can provide feedback on the taste, texture, and presentation, enabling you to make necessary adjustments before offering the products to a broader audience. This approach allows you to gauge the market potential and refine your offerings based on initial responses.

4. Marketing and Brand Awareness: Friends and family members can become your brand ambassadors. By providing special pricing on your baked goods, you create an opportunity for them to share their positive experiences with others. Encourage them to post about your treats on social media, leave reviews, or bring your goodies to gatherings. This organic promotion can raise awareness of your bakery, attract new customers, and expand your reach within their networks.

In conclusion, offering special pricing to friends and family was a fulfilling and mutually beneficial experience for both myself and for others. It also ensured that my time was valued and that my friends and family saw what I was doing as a legitimate business. Hope this helps and I hope you have fun sharing the sweetness with your loved ones!