This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Black & White Cookie Co.'s New Plan to Roll In the Dough

At first he tried to produce the cookies in New York City but encountered problems while using a shared kitchen. Auerbach realized they would have to make the cookies in their own facility but finding a space in New York City was nearly impossible because of the cost, he says. He decided to move the company to Binghamton, N.Y., where cost of labor and renting a space would be cheaper to set up his own manufacturing facility.

"That was a nightmare," he says. "Basically it's affordable for a reason -- because business was terrible. We moved our oven three times because of one bad lease after another."

Auerbach originally had a vision of both a retail store and offsite production. Because of the real estate troubles he was having, he abandoned the idea of a retail store and sold solely through the website.

In 2008, with new financing promises, he attempted a retail store again, this time opening a caf' in Corning, N.Y. But Auerbach opened his store just as the financial crisis hit and financing was quickly pulled off the table (even with revenue still increasing). He was forced to close the store and his facility in Binghamton in 2010.

Emphasize the Brand
"At the same time I knew the brand was still there. I continued to build brand value. It's the reason why we were able to convert this into a virtual operation," Auerbach says.

Since he no longer had any physical resources -- and frankly no working capital -- he put all of his emphasis into branding and networking to keep the concept visible, particularly on social media websites Twitter, Facebook, LinkedIn (LNKD), and even through Pinterest.

Auerbach says he uses "pre-defined" searches looking for relative tweets and trends and other people just speaking in general about black and white cookies.

The efforts have been successful both on the consumer side and on the professional networking side. He now says there are "deep players" willing to take board positions.

The company has been holding on by working with several cookie manufacturers to sell a product on QVC. (Auerbach says he is currently not making a profit.)

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs