Episode 192: Baking it Down - Workin' Burkin
Release Date: December 31, 2024
Hosts: Heather and Corrie Miracle
Introduction: The Final Podcast?
00:00 – 00:48
Heather and Corrie Miracle kick off the episode with playful banter, teasing the notion that this might be their final podcast. They emphasize the podcast’s roots as a spin-off from the Sugar Cookie Marketing Facebook group, highlighting their commitment to identifying and discussing prevailing trends within the baking community.
The "Working Birkin" Trend: A Metaphor for Market Segmentation
01:05 – 05:11
The hosts delve into a fascinating TikTok trend where Walmart introduced a counterfeit version of the iconic Birkin bag, dubbed the "Working Birkin." Heather explains, “There is a brand of high-end purses called Birkins. So if you've seen any celebrity, they've been walking around with a Birkin” (02:19). The conversation shifts to how this trend mirrors the baking industry’s dynamics between established, premium bakeries and emerging, more affordable ones.
Understanding Market Segments and Pricing Strategies
05:11 – 16:50
Heather and Corrie draw parallels between luxury brands and bakeries, stressing the importance of maintaining distinct market segments. Heather notes, “To compete with Walmart, Hermes completely appends the marketing strategy that's positioned it where it is. Really high-quality products that are hard to get” (28:58). They discuss how established bakers might feel threatened by lower-priced competitors but assert that both can coexist by serving different customer bases.
Corrie adds, “The invisible hand of the market always even it out” (15:23), emphasizing that quality and perceived value will naturally sustain premium businesses despite the presence of cheaper alternatives. They caution against lowering prices to match underpriced competitors, highlighting the risks of reduced profits and compromised quality.
Navigating Competition and Market Saturation
16:50 – 38:14
The conversation progresses to handling competition and the often-cited notion of market saturation. Heather challenges the idea of saturation by comparing it to the abundance of gas stations, each serving different customer needs without directly competing (38:14). They argue that in the baking industry, there’s always room for new entrants without undermining existing businesses.
Corrie advises against engaging in negative marketing against competitors, stating, “Would you rather tell your audience why the other bakers shouldn't be charging as little as they do or would you rather book your January out?” (18:30). Both hosts advocate for focusing on self-improvement and differentiation rather than deriding competitors, suggesting that enhancing one’s own skills and offerings is a more productive strategy.
Focus on Self-Improvement and Differentiation
38:14 – 57:04
Heather and Corrie emphasize the importance of internal growth over external competition. They discuss how investing time in learning new skills, such as advanced cookie decorating or diversifying product offerings, can set a bakery apart. Corrie shares her experience with red light therapy for hair care, humorously tying it back to personal and professional growth (76:27).
Heather adds, “If you find something you can control, make your photography better, making your florals better” (36:58), highlighting actionable steps bakers can take to enhance their businesses. They stress that perceived value, built through quality and uniqueness, is crucial for attracting and retaining customers.
Listener Q&A: Shifting Business Focus
58:08 – 61:44
In the Q&A segment, Heather addresses a listener named Heather from New Orleans who is considering discontinuing custom cake orders to focus solely on sugar cookies. Heather advises, “If you're like, I have to make more money or I can't keep doing this” (27:38), recommending a strategic approach:
- Update Online Presence: Remove references to cakes from websites and social media.
- Cross-Sell Alternatives: Instead of outright rejecting cake inquiries, offer sugar cookies or recommend other bakers.
- Leverage Existing Content: Focus on showcasing products that align with the new business direction.
This approach ensures a smooth transition without alienating existing customers while opening doors to new opportunities.
Community and Growth: Embracing New Trends
61:44 – 77:22
Towards the end of the episode, Heather and Corrie discuss the importance of community engagement and staying updated with industry trends. They introduce initiatives like the "Touch a Challenge," encouraging bakers to declutter their storage or enhance organizational systems to improve efficiency.
They also highlight the significance of perceived value in products, comparing custom-decorated sugar cookies to luxury gifts. Heather states, “The perceived value that that new baker, that undercharging baker, they'll either book out, they'll quit or they'll raise the price” (32:56), reinforcing the idea that quality and unique offerings naturally attract customers willing to pay a premium.
Conclusion: Moving Forward with Confidence
77:22 – End
Concluding the episode, Heather and Corrie reflect on personal growth, community support, and the ever-evolving landscape of the baking industry. They encourage listeners to focus on what they can control, continuously improve their craft, and maintain a positive outlook despite challenges.
Heather humorously wraps up with personal anecdotes about personal care routines and the importance of setting realistic, achievable goals for 2025, underscoring the episode’s central message of self-improvement and strategic growth.
Notable Quotes:
- Heather: “The invisible hand of the market always even it out.” (15:23)
- Corrie: “Would you rather tell your audience why the other bakers shouldn't be charging as little as they do or would you rather book your January out?” (18:30)
- Heather: “To compete with Walmart, Hermes completely appends the marketing strategy that's positioned it where it is. Really high-quality products that are hard to get.” (28:58)
- Corrie: “The perceived value that that new baker, that undercharging baker, they'll either book out, they'll quit or they'll raise the price.” (32:56)
This episode offers valuable insights into navigating market dynamics, emphasizing the significance of maintaining distinct value propositions and focusing on personal and professional growth to thrive in a competitive baking landscape.