Do you ever find your heart breaking over a, well, manufacturer's problems?

This is about a food at the bottom, so I guess it belongs here, though it feels more like MPSIMS to me.

A long-term friend’s daughter’s business is teetering on the edge. I’ve know her since she was 12. She’s always known what she wants to be. A baker! She started by practically begging her way into a counter job at a little independent bakery when she sixteen, and kept it up thereafter, despite some setbacks, mostly due to family troubles that weren’t her fault at all. She learned about baking, about customer service, about handling staff, about figuring out what customers want, about adjusting for changes in demand, about advertising on a microscopic level, about buying ingredients and gear and ghod knows what all.

She progressed from counter girl to eventually assistant manager, and then when age/ill health pushed the owner to retire, she stepped up, went into major debt (for someone of her resources) and bought the store. Success! Right?

Well, sorta. If you count making a modest living while having to fill in every time an employee let her down and never taking a vacation. But she carried on. The heart of her shop was a particular cookie recipe she developed. Basically a chewy macaroon cookie loaded with coconut, nuts, and dates. I’m not saying this was some major innovation, similar cookies have been baked for centuries, probably, but hers were truly wonderful. Nothing but the best ingredients, and her customers raved. And they sold.

In fact, so well she dreamed of taking it further than just her shop. She contracted with another company, I don’t remember what she called the type of business, but basically they had a full-on factory. They would produce the cookies in larger quantities than she could manage in her shop, using her recipe exactly and their own staff, and package them for commercial sale. (Not just for her, obviously, they made at least a dozen other products for other companies.)

And so she started approaching stores, everything from little bodegas to giant chains, samples in hand. It was slow, but she had some success and the cookies were well received, and she gradually got more outlets.

And then this whole current disaster of an economy struck. She can’t no longer make a profit selling under the terms that had worked. The factory raised their prices … well, who can blame them given inflation, and especially the cost of gas? Delivery costs more. The price of just about every ingredient has gone up.

But what can she do? Raise the final price? But they’re already somewhat of a luxury item. People are trading down a step or two. Maybe that bag of bulk ordinary commercial cookies isn’t any where as delicious, but if it now costs only 1/3 of what she charges? What if her sales drop so much the store won’t even bother carrying them any more?

Or else she could go the ‘enshitification route. Does it really have to be nothing but grade A butter? Maybe fewer pounds of nuts per batch, less dates? But at what point do the cookies stop being special, the very thing that made them worth buying?

And she’s utterly sick about it all. She did nothing wrong, and she’s looking at closing the whole business down. Yeah, she’d still own (maybe) her original bakery, but all her work and dreams and plans…gone.

I hate this so much. She’s a wonderful, hardworking woman who had done everything right – and is still looking at basically failing.

Yeah, I know, Nabisco and such are probably facing scaled up versions of the same thing. But I doubt anyone at Nabisco is weeping into their pillow at night.

Sad.
We buy a butt load of groceries every week.
Garden extensively.
Yet we’ve cut back on any and all treats.
People, children and pets.

Even the simplest cookie or chip is outrageously priced.
I’m sorry, but $8 for corn chips is just crazy.

I can’t imagine I would buy luxury macaroons, very often.
Too bad. Any other time she coulda made out like a bandit.

I have no answers, but her story reminds me of a short story I read in high school: “Quality”, by John Galsworthy.

https://americanliterature.com/author/john-galsworthy/short-story/quality

The bad economic times won’t last forever. She could temporarily cut back or suspend production of her fancy macaroons, while selling more prosaic items at her bakery, and then resume the macaroons when conditions improve.

Business, and smaller business especially, is backbreaking heartbreaking work.

Success is as often a matter of not encountering bad economic times during your scale-up as they are anything to do with your decision-making or product. Many, many fine and deserving well-run businesses are scraped out of existence every week during hard(er) times. Said another way: the incoming tsunami sinks most boats. And a fair few ships too.

As @Chronos wisely says, the philosophical key is to recognize that the product, good as it is, cannot be a success right now. For reasons external to your product and its production and its marketing.

So do not expend your last spare measure of sweat and dollars trying to prove the impossible. Cut and run. “He who fights and runs away lives to fight another day.” are words for businesses to live survive by when times are hardening.

That sucks. I think about small businesses a lot lately. Every little thing costs more and I’m sure margins are always thin. They are thinner on the edge of a bubble. With huge companies slurping up everyone and everything, I don’t know how small businesses that manufacture anything survive. I see lovely new independent products pop up in my grocery store all the time, while I think “awww…bless 'em” and walk past because I can’t afford what they need to sell them for.

Thanks for the sympathy for my poor baking friend. And I suppose good points that maybe it’s just “not now” vs. “not ever.” It’s just tough watching it happen to someone you care about – she’s sorta like a niece to me.

Something I didn’t mention before, is that I was always worried about her chances of success. Macaroons are sort of a niche product. They aren’t all that many people’s favorites, plus they’re sort of satiating. At least for me, even though they honestly taste wonderful, it’s such a distinct, striking flavor. Hers are large and thick and chewy … you eat one, and you’ve had your fill for a while. It’s not something like a shortbread cookie, or even an oreo, where you can settle down in front of a movie and munch your way through a whole stack of them.

Sort of the opposite of “I bet you can’t eat just one.” Maybe I should encourage her to invent yet another version of the chocolate chip cookie.

Right now, encourage her to invest in selling necessities, not indulgences. They can be a nicer version of necessities versus the crappiest crap Wal*Mart can put out. But right now her world can probably absorb a $5 loaf of nice bread. It won’t absorb a $5 cookie.

I don’t think that’s how the world works. I think people will buy the cheapest machine-made bread and splurge on a tiny luxury.