misc Some realistic questions need answering...

To be able to sell sauce at less cost, you would have to produce in large quantities. Which is hard to do at first. I would suggest checking your local/state laws when it comes to producing in your own home. Several states will send out an inspector, and can license your home kitchen for sauce production. I would not recommend trying to fly under the radar. Especially if you are selling the sauce. If it is in fact a hobby sauce, and you are just going to trade with friends, then it would be ok, but as others on the forum will let you know, you need to do it right. You can find several threads on this forum talking about this issue. Most of them are pretty heated. [no pun intended]

I can see both sides, but if you are starting out, and want to actually turn it into a business, I would suggest dotting your i's and crossing your t's all they way through.

Hi jakkSauce,

this is just my 2cents and hopefully others will chime in with their perspective-


you'll never get rich selling hot sauce on the internet. Shipping is a killer for single bottles.


Take a step back and get local. Find out what your local requirements are for making and selling sauces in your area. Talk to your local health district. The easiest route to get started is to use another commercially licensed facility, don't have to be a processing kitchen, just think outside the box of where to find a commercial kitchen. Or look at a co-packer. There are several threads that talk about this, use the search function. There is also a thread about hobby sauce makers vs legal sauce makers. THat's some good reading also.

Start selling at your local farmers market and get into a couple local grocery or specialty food stores. You'll make a whole lot more money through those routes than trying to sell over the internet.

fwiw- you do not have to be FDA registered to make and sell sauces, you do have to be locally licensed, and for your own protection, you should be insured.

You do not need a bar code, but some larger stores or distributors require one. But it is not legally required. Same thing with the nutrition panel. Research the FDA website for nutriotional labeling requirements and exemptions.


Talk to your local health people, they will be the ones you deal with. Do it right, get legal, don't risk the health of your customers or financial repercussions to yourself by selling unlicensed sauces.

And above all....HAVE FUN! Good Luck, and


salsalady

from PA. Looks like you have a fun ride ahead of you and you found an awesome forum to ride along with you.

I originally started with 8oz. bottles because who wouldn't want more, but then the desire for 5oz(and the seeming industry standard) became apparent. I have all but phased out the 8's now for 5's. Also +1 on what westin and salsalady said.

Hey JakkSauce

If you did around this site a little you'll find a lot of good info about about home kitchens and the FDA.

With respect to making money, here is my experience so far

I also sell my sauce in 120z bottles (its too thick for the 5oz woozys).

I sell it on my website for $7.95 plus $5 shipping for the first bottle, $1 for each additional, so your estimate of $13-$15 is about right. That being said, my website loses money. The $5 shipping covers my costs for "close" (California, Oregon etc) customers, but to ship cross country costs me about $8 so I end up subsidizing the shipping on those transactions.

And so overall, the costs of the website (ecommerce engine, transaction fees, hosting fees, etc) exceeded the gross profits from web sales by a few hundred dollars last year

I still do it because I think having a website is mandatory for any business, although I have considered dropping the ecommerce aspects of it and making it information only - that would reduce my costs a lot

The other part of mu business is selling through local delis, grocery stores, restaurants. Frankly, this is the real business, not selling online. Getting into a local grocery store, and supporting them through local demos and give aways is how you build your brand. Once locals know and like your product, can recognize it on the shelf, and become repeat buyers, then that market becomes self sustaining, allowing you to move on to the next town down the road. Rinse. Repeat. That's the business

Have you considered flat rate boxes?

5.35 - if it fits it ships...

jsschrstrcks said:

Have you considered flat rate boxes?

5.35 - if it fits it ships...

Click to expand...

Yeah, I wish it did, but the 12 oz bottle doesn't fit

First, everyone here took all the good topics, s'what I get for showing up late to the party.

Anyway, 5 oz bottles can ship for $3.50 1st class so long as they're under 12 total (including packaging).

12 oz bottles are tougher because they're already too heavy for 1st class.

Web sales are important in that unles you are fortunate enough to own a brick & mortar, it's the face of your business, and a means for people to try your sauce in markets you're not selling in and maybe learn a little about you & what you're about. I'm looking at farmer's markets & festivals right now. I think it'll be the best way to get product to move in the stores I get into (just got into my 1st store) as folks will be able to try samples.

The challenge with stores though is you're not making much there either. Not until you're in a lot of them and your costs drop for the economies of scale.

I use a co-packer - I've posted a lot about the experience here in other topics. It's been positive but it also requres a commitment - once you go down that road you're committed.

But way way way before getting to that point, you need to address pH, shelf stability, insurance, naming your sauce, label, trademark, food safety, DBA, sales permit, etc, etc, etc. all that stuff above that everyone said before I got here - all 100% spot on.

And before any of that you need to decide if you really want a business or if you want a break even or low profit hobby. If a business You'll new to figure out scale. Make. Plan & stick to it. Figure out a budget that's right for what you want to do.

Don't mean to discourage at all - far from it. Yes, it's possible to make some money selling online. No you probably won't get rich doing it. No, there arent shortcuts to food safety laws or the usual stuff you need to start & run a legal business.

Good luck!