Business Model

The Jim’s Bakery business model takes advantage of its well-established reputation for quality baked goods and exceptional service. Jim’s brand stands for great food and an enjoyable experience. By offering samples that draw retail customers into our store (the top of the sales funnel), we can introduce them to our products and services in a friendly, enjoyable environment.

Our sales strategy is best seen as an inverted pyramid or funnel where a high number of low-value retail customers enter at the top of the pyramid and a lower number of high-value commercial clients are driven down the pyramid to become committed long-term commercial clients. The goal is to capture commercial clients with less expensive products and services that meet their needs and then to migrate them down the pyramid toward higher value products and services. This approach makes tremendous sense when applied to a recurring revenue model. Clients can (and do) enter at any level but we take advantage of the nature of our products and services to attract a targeted commercial audience. Some customers never progress beyond the basic product while others become long-term commercial BaaS clients.

We draw customers into the pyramid by first inviting them to sample our bakery products for “free,” enticing potential customers to purchase products and converting them into paying customers for our retail products. We invite retail customers to leave their business cards to win free prizes for their office. The goal is to drive down the sales funnel by identifying potential commercial customers over time. We know that everyone will not transition to the bottom, but we believe that even large commercial clients are likely to first become familiar with Jim’s Bakery as retail customers at the top of our sales pyramid. This approach allows us to cast a wide marketing net by first making customers aware of our products and then making them aware of the services we provide.

Jim’s Bakery business model

The growth of Jim’s Bakery may appear to its customers to have occurred organically, but in fact, it has occurred by following a deliberate and strategic business model that has succeeded according to a repeatable and predictable business plan.