David Stacey with tray of cookies

Source: Stacey’s Bakery

Managing director David Stacey is the great-grandson of founder Guy Stacey

Derbyshire business Stacey’s Bakery has revealed how it is managing rising costs and avoiding passing on steep price hikes to customers.

Although the fourth-generation family baker has been forced to raise prices as costs soar, it claims it has not increased them by as much as bigger brand names.

Among the input costs increases the business has faced this year are a 30% rise in the price of flour, 50% rise in whipping cream and 10% rise in premises insurance.

Managing director David Stacey said the business, which operates a bakery and four shops, hasn’t hesitated to change suppliers if it means they will get a better price.

“Because we’re small and my family runs the business, we can make decisions quickly,” he said. “If we get a better price, we don’t have to pass price hikes to our customers.”

He added that although everyone was experiencing energy price increases, Stacey’s had been fortunate that an energy broker had enabled the business to find a fixed tariff.

“Don’t get me wrong, prices have gone up significantly compared to what they were before,” said Stacey. “But we can budget for that, and we know prices are not going to go too silly.”

While the business has raised some of its prices, it has tried to keep this to a minimum and has accepted its profits are going to be lower.

“We can only absorb the price increases so much, but we still want our customers to come back and keep shopping with us and not have to worry about extortionate costs,” Stacey explained.

“All businesses have to decide how much of their cost price increases they pass onto customers.”

Stacey’s charges 84p for a handmade sausage roll that contains meat from the butcher next door to its bakery, which Stacey said is 30% cheaper than mass-produced sausage rolls from a well-known brand.

Despite the wider economic gloom, business has been “buoyant” this autumn, according to Stacey, with efficiency playing a major role in the performance of the bakery.

“Our big thing is working in an efficient way - with a small business we can do that. We have a hard-working, dedicated team who put in the hours, alongside myself,” said Stacey, adding the business is investing in equipment to speed up sausage roll production.