Home bakers struggle with their baked good prices. They’re always afraid it’s “too much.”

When you only baked for family, friends, and co-workers, you only had to consider the cost of ingredients. You didn’t have to think about labeling, packaging, insurance, fees, and labor.

And neither do those judgmental customers who scoff, “this much for a cookie?”

Like, yes? But, also no.

I’m going to tell you how I stopped getting pushback on my baked good prices.

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Things to Consider

Where you are and who you serve are major qualitative factors to consider.

Although I live in Southern Maryland where it’s pretty farm-y, it’s close to Washington DC so a lot of commuters live near me, meaning prices are driven up.

As background, I sell my 2.0 ounce baked goods for $4 and 3.5 ounce chunky cookies for $6. I recently heard that New York City bakeries have been charging up to $8 for a cookie! So, big city (even being an hour away from one) means big prices.

Conversely, I have heard from home bakers in smaller towns say that there’s no way they could sell a cookie for more than $2 simply because of their economy.

So, there’s definitely nuance.

I created a spreadsheet that helped me price my baked goods. It considers the cost of goods, packaging, and labor and is a great start to ensuring that you will make enough to sustain a business.

Now, onto the good stuff.

Do We Have a Deal?

When I first started selling at the farmers market, I didn’t offer any deals. And for the most part, it didn’t stop people from buying, especially if they were in a big family.

To try boost sales, the first deal I started offering was “Buy 5, Get 1 Free” so you could get 6 cookies for $30, making each cookie $5 each instead of $6.

And no one really took it lol.

I tried marketing that you can freeze these cookies, but for the most part, it’s really hard to convince someone to go from two to 6 cookies.

That’s when I decided to offer a gift with purchase. The first item was a mini lemon loaf valued at $4.

When I began implementing this, I didn’t offer it for individual sale at all. But, the non-cookie items started to become popular, so I expanded my product line-up to include classic cookies at 2 ounces and assorted baked goods for $4.

And if you bought three $6 chunky cookies, then you’d get any $4 item for free.

It was then easier to convince someone buying only 2 cookies to get another one plus a little snack-y snack since it’s a $10 value for only $6 more.

That pushed a lot more product and successful upsells!

Comparison is the thief of… uncertainty

On one of my last days at the farmers market in 2025, a man came up to me to buy just one cookie and acknowledged that $6 is a bit steep (this was after I had implemented the deals), but really wanted something sweet to hold him over.

I pointed him towards the $4 items I had at the time, which were my 2 ounce ginger molasses cookies and hot cocoa cookies. But, then he pushed back on me saying that, “well, these [$6 cookies] seem like a better bang for my buck.”

And it’s like… THAT’S THE POINT! LOL

Having something to compare at your table gives customers something to anchor and make their decision on. People love feeling like they have choice and power.

I know at this point, you may be thinking that they’ll give you the “I’ll come back after I look around” so they can find a cheaper baker.

And they might! They might.

But, you’re also going to have customers who come back, knowing that there are cheaper bakers, because they love your stuff.

Show! Don’t Tell.

Back when I learned how to write essays, it was drilled in that you have to state the obvious because you can never assume that the reader knows what you’re talking about.

For my tent set-up, I tie these dry-erase pocket sleeves (affiliate link) with marketing material to formally introduce my home bakery and products to passerbys.

People don’t like being surveilled or harped on. They just want to look. And I simply make it easy for them to stand in front of my tent without the threat of me talking to them, haha.

I explain the meaning of my business name, the ingredients I’ve chosen to use, and the flavors I offer.

If you don’t tell your customers that Cookie Cazimi is about celebration, good luck, and opportunity or that you use high-quality, premium ingredients or that your chunky cookies use more butter than other chunky cookies for better flavor, then they’re not going to understand why they should buy from you at all.

They want to have a sense of your expertise before experiencing it. Generally, people know that home bakers love baking. But, then what? Why not go to another stand?

I highly encourage you to write some stuff up and hang up signs! They’re really effective.

What if it doesn’t clock?

The latest Justin Bieber meme plays through my head a lot.

The pop singer is confronting paparazzi for stalking him (because they are) and says, “You don’t get it. It’s not clocking to you. It’s not clocking to you that I’m standing on business,  is it?”

I think it went viral because the statement doesn’t really make sense. But, I think that added to the memorability.

Basically, he’s saying that they just don’t understand and never will.

And sometimes, that’s just what it is. There will be people who simply won’t be your customers.

That’s not a sign to lower your prices. Let them go.

There’s a saying in marketing that if you’re selling to everybody, then you’re selling to nobody. Because if you’re blanketing details over, no one feels like they’re being talked to.

What if I had tried to talk to anyone who sells things in this blog post? The title would be: How to charge “too much” for your product

I don’t even know what that means. Does that mean to try rip people off?

You’ll see it all the time in home baker forums: “I’m worried I’m charging too much.”

That’s why the current title is the current title. It’s something I’ve grappled with as a home baker. I was nervous being the only baker charging $6.

But guess what? Within a few months, I noticed other home bakers charging $6-7 for their baked goods.

And I don’t think it’s because they realize they can “get away with it” and pocket extra cash. I think they felt the financial squeeze of undercharging out of fear. Because it costs more than just ingredients to run a home bakery.

I also think they saw that my prices didn’t stop customers coming to my booth after checking everyone else out.

Because I’m not selling anything but an experience and my passion.

Selling Your Baked Good Prices Conclusion

As you can see, your baked good prices aren’t really about the baked good itself.

I mean a bag is a bag, yet some are $5 and others are $50,000. Similarly, a cookie is a cookie but people like the ones from home bakers.

People want that sense of connection from you to your product.

Usually the batches are small, which usually signaling higher level of care compared to that from a factory or commercial bakery. Yes, food scientists and pastry chefs may have more education and technical know-how (and yeah, they can be home bakers as well) but they’re human; they can’t look over 10,000 cookies better than they can 10.

I hope this has been helpful for you.

NOT SURE WHAT TO BAKE?

Check out the Recipe Library to see what other bakes you can make in over 25 baking pan sizes!

I’ve officially completed my first year as a vendor at the farmers market!

A little background: I run a home bakery in Southern Maryland selling chunky cookies in a variety of flavors. I started Cookie Cazimi in May 2024, became a seasonal vendor at the oldest farmers market in my area by September, and then was accepted as a permanent vendor the following year.

When I first started vending, I only showed up once a month. Sales weren’t amazing, but I still managed to get two returning customers in just four showings — which felt huge at the time.

In 2025, once I became a permanent vendor, I showed up every Saturday for three months straight. I always knew weekly markets would be hard on me, so when I could feel burnout creeping in, I switched to a bi-weekly schedule, with an extra showing if there were three Saturdays in a month.

Even with fewer showings, it’s been a wonderful and profitable year. And these are the biggest lessons I learned as a first-year farmers market vendor.

This blog post may contain affiliate links, which means a commission may be earned if you make a purchase through these links — at no additional cost to you. Please read the disclaimer policy for more information.

Your Marketing Copy Sells Your Worth

Every home baker stresses about pricing.

No one wants to turn people off because “anyone can bake,” and yes — you could make cookies at home for about $0.85 each. But what people don’t see is the time, money, and effort it takes to bake dozens of cookies, package and label them properly, carry insurance, and show up with a table, tent, and displays.

I sell my 3.5-ounce chunky cookies for $6 each. My reasoning was simple: if people can buy an $8–$9 coffee that’s mostly water, they can buy a cookie made with European butter, premium chocolate, and real eggs for $6.

That logic made sense to me — but when I first started, I heard everything:

“$6 for a cookie?”
“GOOD LUCK WITH THAT.”
“It’s just a regular cookie with more flour, right?”

Older shoppers were often the loudest. Some would scoff, stop mid-conversation, and literally walk away.

At the time, my display was pretty bare. Eventually, I bought pink dry-erase pocket sleeves and added printed marketing materials — my schedule, the weekly menu, and most importantly, two pieces of copy that completely changed things:

• What “Cazimi” means

• The ingredients I use in my cookies

Here’s the thing: you have to tell customers what’s obvious to you.

Of course you’re using high-quality ingredients. Of course you’ve spent hours tweaking your recipe to make it the best thing you’ve ever baked. But they don’t know you.

When you explain who you are and what goes into your product, people become more open — and more confident — about supporting you. Customers want to support small businesses; they just want to feel good about their choice.

Once my marketing copy went up, the pushback stopped.

For a while, I was honestly scared to tell older customers my prices. Now they ask, I tell them, and they buy.

Deals Don’t Just Sell — They Set Expectations

My menu lists all my prices, but I reveal my deals at the table. It feels like a little reward for coming up and buying.

My pricing looks like this:

• 3.5-oz chunky cookies: $6

• 2-oz classic cookies & assorted bakes: $4

My deals:

• Buy 3 chunky cookies → get a $4 item free

• Buy 5 chunky cookies → get 1 free plus a $4 gift

Funny enough, not many people choose the buy-5-get-1 deal, even though it’s technically the best value. The deal that moves the most product is the gift-with-purchase when you buy three chunky cookies.

People love free stuff. They also like feeling in control. It’s easier to spend $18 than $30, even when both options offer value.

It’s also way easier to convince someone buying two cookies to add one more than to jump from two to seven.

This is another benefit of pricing your products appropriately. I’m not a millionaire because my cookies are $6. When I first started, they were $5 — and I sell more now at a dollar higher.

Because my pricing works, I can offer deals without stressing. I can give more to my customers because of their collective support.

Abundance Is a Feeling, Not a Table Setup

When I first started, my table was simple: a white tablecloth, acrylic signs, and one cookie per flavor.

People constantly asked, “Is this all you have left?”

No — I just wasn’t showing everything.

Other vendors suggested shelves or decorations, but I’m not a decor person. I knew I’d probably hate it and feel like I wasted money.

If you’re like me, here’s the good news: you don’t need decor to look abundant.

The biggest change I made was putting out more product. Showing three cookies per flavor instead of one instantly made my table feel full and plentiful — at zero cost.

It also helped with flow. If someone bought a cookie, there were still two left on display, and I didn’t have to stall while digging through storage.

With my marketing materials up front, my table finally looked complete — and abundant.

Good Photos Start the Sale Before the Market Opens

I used to take photos in my kitchen, but everything was brown and flat. The cookies were visible, but there was no feeling.

Now, I take photos and videos of my cookies outside in the sunlight on a pink tray.

The difference is wild.

Yes, it’s a little annoying hauling everything outside and back in — and cloudy days suck — but the payoff is worth it.

You don’t need much. I use a phone stand and a tray for branding, but honestly? You mostly just need sunlight.

I use these photos on my preorder page, Instagram, and Facebook. Facebook is especially powerful for local community groups — everyone posts that they’re selling baked goods on Saturday.

So how do you stand out?

By posting good photos.

One market, five people told me they came because of my Facebook post.

You’re welcome, everyone else at the market

Now my photos actually create an experience and everyone benefits!

Some People Will Be Rude — That’s Part of the Job

People have told me my cookies are too expensive. Cool — they’re not my customers.

My customers understand the work that goes into what I do. They know I’m not getting rich, but I’m also not drowning. And no one wants cookies from a sad person.

I am not sad. I’m very happy with how this year went — and that energy translates into better food.

That said, I won’t pretend rude comments didn’t hurt. They did. Putting yourself out there is vulnerable, and being shit on for it sucks.

You don’t think it’s worth the price? Fine. Think it and move on. You don’t need to say it out loud.

If this happens to you, write about it. Journal it out. Your feelings are valid.

It’s not a fun lesson — but it’s a real one.

Concluding My First Year as a Vendor at the Farmers Market

I hope this was helpful. I still have a lot to learn — I’ve only sold at one farmers market so far. I also did a fall bazaar at a senior center, which ended up being a surprisingly fruitful day.

If you’re thinking about vending, starting small, or raising your prices — I hope this gives you a little clarity and confidence.

I didn’t think I would start a home bakery in Maryland when the New Year rolled around. But, life has a way of surprising you, even if you feel like you’re starting over in your 30s.

This blog post may contain affiliate links, which means a commission may be earned if you make a purchase through these links — at no additional cost to you. Please read the disclaimer policy for more information.

Not Professional Advice: For informational purposes only. Please read our disclaimer policy for more information.

Why I started a home bakery in Maryland

I baked from time to time in high school, but I really got into baking in college!

I would host friends for dinner and always prepared dessert. When I wasn’t hosting, I would bake and saran wrap individual portions to give out to friends on campus.

A good friend of mine that I’m still in contact with today was always flabbergasted by the fact that I would just pull out muffins from my bag

Granted, I baked mostly because I wanted to eat what I made — first and foremost. I’m not that nice LOL

The problem was (and still is) that most, if not all, recipes feed about 6-8 people and I didn’t know how to convert my favorite baking recipes into different pan sizes yet.

Anyway, flash forward to Christmas 2023, I decided to bake cookies for the close friends I made that year, mostly from my MMA gym, and before you knew it, non-rumors circulated about my affinity for baking.

The following May, I was out for an injury and one of my jiu-jitsu instructors reached out asking how I was and when I was going to post more cookie content to my stories!

Funnily enough, I baked cookies for my cousins that very day.

Refusing just to take what was left over, he insisted on paying for them and encouraged me to make it a business.

And I did with Cookie Cazimi because I gave up on life (not really) and I stopped taking myself seriously.

What does Maryland consider to be cottage food?

One of the first things I did after I decided to start a home bakery in Maryland was to look into what I’m able to sell from my residential kitchen in my home state.

The Maryland Department of Health (MDH) outlines what foods are allowed for cottage food businesses.

So, don’t think you have to wing it and just hope you don’t get in trouble!

Please note that I’m mainly going over and focusing on what stood out to me as someone who primarily sells chunky New York City-style cookies in the Guideline for Cottage Food Businesses — I highly recommend bookmarking this resource by the way.

If you want to sell other items, by all means, do so! Hopefully what I go over will still answer some of your questions regardless.

Anyway, the State of Maryland defines cottage food as “non-potentially hazardous/non-perishable” meaning the food item must have a low water activity and/or a low pH (aka be acidic) in order to be “stored under normal conditions without refrigeration.”

Examples of allowable foods are listed. You can make baked breads, cookies, pastries, hot-filled canned acid foods, and non-potentially hazardous candy to name a few.

And they use the word “allowable” rather than “allowed” because this is a guideline, not a strict rulebook. You could make something that totally falls within the stated definition but they just didn’t list it!

But, of course, the devil is in the details and I have some more background information to share on what foods you are allowed to make and sell for your home bakery in Maryland.

What is not allowed under cottage food law in Maryland?

The Maryland Department of Health writes that “baked goods that require any type of refrigeration” cannot be allowed as cottage food.

The MDH also lists the “potentially hazardous topping or fillings” you can’t include either. So, delicious custards, meringues, or buttercreams using cream, cheese, cream cheese (lol), and fruit curds are not allowed because these all need to be refrigerated!

They also explicitly tell you that you aren’t allowed to use vegetables, meats, fish, etc. but if you’re thinking about starting a home bakery in Maryland, it’s like, “duh…”

But, of course, we must cover all our bases.

Oh, you also can’t make chocolate, meaning taking a freakin’ cacao bean and doing who knows what to make it into chocolate. I don’t why the hell you’d want to do that, but you can’t.

You can, of course, use commercially made and available chocolate like a normal person.

What kind of fruit can I use for my cottage home bakery in Maryland?

Previously, I said water activity and pH determine whether a food item can be stored at room temperature, so how is fruit allowed since there’s typically a lot of water in fruit?

It’s the pH! You’re allowed to use acidic or high-acid foods with a naturally low pH of 4.6 or less.

Some fruits that are considered highly acidic are apricots, apples, blueberries, citruses, cranberries, pineapples, pomegranates, raspberries, and strawberries.

And, that’s also why foods like bananas, pumpkin, and zucchini are not allowed to be used in your baked goods.

You can still make a mean lemon loaf though!

This is a bit of a sidebar, but if you want to make a glaze for the lemon loaf, be sure to only use lemon juice and not water because water will make it susceptible to bacterial growth (because we’re increasing the water activity) whereas lemon juice is too acidic to let things grow even if there technically is water in it.

Personally, I like to use commercially freeze-dried versions of these fruits (minus the citrus) in my baked goods because the moisture from my cookie dough will give them a wonderfully chewy texture.

You still have to use high-acid fruits so freeze-dried bananas or mangoes are not allowed because they’ll be slightly reconstituted after baking and won’t have the correct pH (in theory, but I did confirm this information with the MDH as well).

I also like to use citrus-flavored extracts or emulsions because fruit is expensive! And I can’t buy a million lemons just for the zest… because I don’t sell glazed lemon loaves… I was just letting you know you could do that in the state of Maryland lol.

What commercially made foods does Maryland allow in cottage baking?

Yes! You are allowed to use commercially manufactured food items as long as they don’t need to be refrigerated after opening.

So, while you can’t make, use, or sell your own caramels or marshmallows or foods using them without testing, you can use commercially available caramels and marshmallows that can be found in the aisle section of any grocery store that don’t need to be refrigerated after opening.

I love using chocolate stuffed with creamy caramel as a filling for my chunky cookies!

This also applies to commercial peanut butter, chocolate hazelnut spread, cookie butter, and pistachio butter/cream as long as the instructions or company tells you to store at room temperature.

Are there any exceptions as to what I can sell as cottage food for my home bakery in Maryland?

Remember, the Guideline from MDH said that low water activity and/or low pH determine whether a food can be “stored under normal conditions without refrigeration” and if it can, it is considered a cottage food.

Well, if you can prove this cheesecake has a water activity of 0.85 or less, a pH of 4.6 or less, or both then you are able to sell that product as a cottage food business in the state of Maryland.

Cheesecake is a bit of a stretch, but you get what I mean.

If you can prove it, you can use it!

You don’t have to send anything in. Just have them ready to show when asked.

And while I’ve never sent anything out for food laboratory testing yet, I have heard good things about the University of Arizona and Midwest Laboratories.

How to package and label cottage foods in Maryland?

The Guideline for Cottage Food Businesses states that “[a]llowable foods produced under the cottage foods regulation must be prepackaged at the cottage food business and labeled…”

So, I can’t just have my chunky cookies out in a case and put them in a little baggie like that coffee chain we all think of when we think of coffee chains lol.

I package my cottage baked goods in cellophane cookie bags and use printable stickers for my labels.

In regards to how to label your cottage foods in Maryland, you have to include the following:

1. Business name
2. Residential home address you’re baking out of
3. Name of the cottage food product
4. Ingredients (and sub-ingredients) in descending order of the amount of each ingredient by weight
5. Net weight, count, or net volume of the cottage food product. I personally use “Count 1” for my cookies because if you go by net weight or net volume, you will have to be exact.
6. Allergen information as specified by federal labeling requirements. If any health or nutritional information claim is made, you will also need to include nutritional information as specified by federal labeling requirements
7. The statement, “Made by a cottage food business that is not subject to Maryland’s food safety regulations” in a 10-point or larger font size in a color that provides a clear contrast to the background of the label

Do I have to put my home address on cottage food labels?

Yes, but you can replace it by applying for a unique identification number from the Maryland Department of Health.

Go to the Cottage Food Business Request page and follow the instructions.

This process can take up to twelve (12) weeks. Although your experience may vary, I received mine in about a month.

What if I still have questions about what I can do as a cottage food business in Maryland?

The State of Maryland has an FAQ page answering the most common questions regarding Maryland cottage food businesses.

You can also email the MDH Food Plan Review at mdh.foodplanreview@maryland.gov for more clarity on your specific questions if you don’t find the answer you’re looking for. I reach out to them all the time for clarification.

Shout out to Ashley!

Do I need an LLC to operate a home bakery in Maryland?

No, you do not need to file for a Limited Liability Company (LLC) to operate a home bakery in Maryland.

You can make money as a sole proprietor and file for one (or any other business structure) later down the line.

Personally, I did hire Northwest Registered Agent to file a Limited Liability Company for my cottage food business (and this blog).

Do you need to open a business bank account?

I’m not a tax professional nor do I do my own taxes, so I can only tell you what I did and what I was advised for my particular case.

My tax lady advised that I open a business bank account pretty much as soon as I make money, which was right away since I started with the encouragement of my friends.

She told me that we would file a Schedule C since I am the only one running my LLC.

I also want to mention that the bank I work with also requires an LLC to open a business bank account. I think if I hadn’t decided to file for an LLC right away, I would have asked my tax person about opening another checking account to strictly do business out of so my personal finances didn’t mix, but this is completely a hypothetical of what I would have done and not legal advice!!

What about sales tax?

Maryland Taxes has a list of what you need to charge sales tax on. As of writing this blog post, the sales tax rate in Maryland is 6%.

For myself, I do not have to charge sales tax on the baked goods I sell.

Do I need food liability insurance to run a cottage food bakery?

You don’t really need anything beyond following the guidelines for cottage foods, but I highly recommend getting food liability insurance lol. I use FLIP.

It is commonly misunderstood that an LLC will protect your personal assets even if you’re found liable for injury from your cottage food products. But, I don’t believe so.

Again, not a lawyer and this is not legal advice.

But, I’ve been told that if you only have an LLC and don’t have food liability insurance, you would still be financially responsible for legal claims or settlements even if your business is bankrupt. You would still be on the hook.

Concluding how to start a home bakery in Maryland

And that’s everything I know so far about starting a home bakery in Maryland that complies with the state’s cottage food laws.

I can’t wait to share more about my experience as a farmer’s market vendor with you all very soon!

WANT FREE RECIPES FOR EVERY PAN SIZE?

Check out the Recipe Library to see what other bakes you can make in over 25 baking pan sizes!