Sales Models and Channels For Home Bakeries

Once you decide what system to use to accept orders and payments for your home bakery, the next step is choosing how those orders move from your kitchen to your customers.

You should start by understanding these two concepts: your sales model and your sales channels.

Your sales model will define how you plan production and accept orders. They control your rhythm in the kitchen-when you shop, mix, bake, and hand off.

Sales channels define where and how customers receive or buy your products. They control your points of contact-pickup spot, delivery route, market booth, or wholesale partners.

Sales Models

Let's chat about how you will be planning your production and accepting orders, and I am not referring to the system or platform you will be using to take the orders and payments, that's a different topic.

There are essentially two sales models you can follow: Pre Orders and Bake-To-Sell

1. Pre Orders

Customers place orders in advance, allowing you to batch and fulfill them by a set date.

Pre Orders can be On-Demand or Scheduled Drops

Pre Orders / On-Demand:

Customers place orders at any time, and you fulfill them as they come in. This is a common model used by custom cake or cookie bakeries.

Pros:

• Flexible schedule and capacity
• Convenient for customers with on-demand orders

Cons:

• No set schedule can be overwhelming
• Hard to track and predict demand
• Stressful during sudden influxes of orders
• Limited ability to plan bulk ingredient purchases

Pre Orders / Scheduled Drops:

Open limited ordering windows during which customers can secure their orders. This is a common model used by sourdough bread bakeries, like mine, Leaf and Loaf.

Pros:

• Efficient use of time and ingredients
• Orders can be batched for streamlined production
• Less waste due to baking to exact orders
• Easier to plan bulk ingredient purchases
• Predictable schedule, reducing last-minute stress

Cons:

• Limited flexibility for customers who miss the order window
• Requires advanced planning and organization
• Potential loss of spontaneous sales

2. Bake-To-Sell

Also called Hope-To-Sell, this model involves baking in advance and selling what you have on hand at markets, pop-up events, farm stands, or directly from your location.

This is a sales model you can use when you are first starting out and do not have a set customer base yet, so that people get to know your products and you get to know what the demand is like in your area.

You can also use this sales model whenever you are unsure of what your baking capacity will be from week to week due to your other commitments.

And, of course, this is the sales model you would use if you are selling from a farmers market, pop-up event, or from a honesty system farm stand.

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Sales Channels

Now let's chat about how will your bread and bakes be made available to your customers?

i recommend choosing one primary sales channel and adding a second as you grow, keeping everything compliant with your cottage food laws.

Here are the most common alternatives:

1. Pickup

Customers collect their orders from your home, farm stand, or a community location. This is the sales channel I mostly use and I love it because people come to me.

2. Delivery

Products are delivered directly to customers' homes or designated locations. I offered local deliveries during the first couple of months before it became too much (everyone wanted delivery) but I can see how this option could be great for a lot of people.

3. Wholesale

This model involves selling baked goods in bulk to retailers, coffee shops, or other businesses.

4. Farmers Markets and Pop-Up Events

Selling directly to customers at public markets or temporary pop-up locations can provide immediate exposure and sales opportunities.

5. Farm or Bread Stands

Farm stands or honesty-based systems allow customers to pick up products and leave payments.

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Fulfillment Methods Based on Home Type

The kind of home you live in can impact the logistics of how you fulfill orders, particularly when it comes to pickup, delivery, and storage options.

Here's a breakdown of fulfillment considerations for different living situations:

1. Country Home / Farm

Country homes or farms often have larger spaces for storage, baking, and customer pickups.

Fulfillment Options Available:

• Delivery
• Wholesale
• Pickup
• Farmers Markets
• Pop-Up Events
• Farm or Bread Stand

2. Home in an HOA (Homeowners Association)

Homes in HOAs may have stricter rules on commercial activities, so coordinating pickups carefully or focusing on deliveries can help avoid conflicts. Following HOA guidelines is crucial to maintaining good relations with neighbors.

Fulfillment Options Available:

• Delivery
• Wholesale
• Pickup
• Farmers Markets
• Pop-Up Events

3. Apartment or Townhouse

Space constraints in apartments or townhouses may limit large-scale production and on-site pickups. Instead, delivery or partnering with community events (like farmers markets or pop-up events) can be more practical.

Fulfillment Options Available:

• Delivery
• Wholesale
• Pickups might be limited
• Farmers Markets
• Pop-Up Events

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Ready for the next step? Explore my favorite how-to articles for home bakers: How to Legally Sell Baked Goods From Home, Process to Make Sourdough Bread in Bulk, and What to Know Before You Buy a Bread Oven.

For a more comprehensive learning experience, checkout my mini course Launch A Bakery From Home.