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MrsMom
Frequent Member
Joined: Sep 14, 2006
Posts: 450
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 Posted:
Fri Apr 25, 2008 12:20 pm |
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OK, so I've only sold 1 cake before. This week I got an email from my SIL saying one of her friends saw pictures of some of the cakes I did for my SIL for her DD's bdays and that she gave her my email address. The friend emailed and is interested in a cake for her DD's 3rd bday and one for a baby shower. According to my SIL she also has her mom's surprise bday party coming up in June but she didn't want to overload me with cakes at once.
Now my dilemma. What do I charge? The one cake I sold, I got $60 for 50 cupcakes. I had originally quoted a lower price for less cake but once the lady found out "how cheap" I was she added more cake on and spit out the $60 price which I agreed to.
Anyway.....the lady that is inquiring now wants a cake for 40-50 people and when I asked her if she had a budget in mind she said $40. Now, I know I am just starting to sell, but that seems a bit low. On the other hand it would be nice to get the experience...it sounds like I could get quite a bit of business from her...2-3 cakes at least.
Sorry to make this so long, but would you do it for $40 if you were just starting? Do you start cheap to get people interested and slowly raise prices or ask for a bit more to start? How much?
I called the bakery she usually gets her cakes from (my SIL gave me the inside info where she gets them...SIL said her friend said they were cheap there but she didn't like the taste) and an 11x13 (about 35 servings) is $40. |
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tiggy2
Forum SuperStar!
Joined: Oct 07, 2005
Posts: 2494
Location: Omaha, NE
Birthday: Aug 13
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Fri Apr 25, 2008 12:37 pm |
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That's a $1.00 or less per serving! I'd show her the twinkie aisle at walmart. |
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MrsMom
Frequent Member
Joined: Sep 14, 2006
Posts: 450
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Fri Apr 25, 2008 12:45 pm |
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Yeah, I know.  I was thinking $1.25-1.50 would be fair since I haven't done a *ton* of cakes yet, but then she came back with that price and I'm a little bummed about it. I don't know if she was low-balling so there would be some negotiating room or what.... |
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crisc23
Junior Member
Joined: Jul 24, 2007
Posts: 71
Location: Oklahoma
Birthday: Jun 12
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Fri Apr 25, 2008 12:54 pm |
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I understand your concern about getting experience and just starting out, I remember being at that same spot. But you can't let anyone expect a specialty cake for less than she would pay at the bakery where she doesn't like the taste.
I learned the hard way, when I first started I was selling for very cheap prices and after doing that, it's extremely difficult to raise your prices since the customers are used to paying the low prices.
I have also learned that my prices dictate the type of customers I get. When I got confident and my prices went up, my clientel also changed and I got bigger, more profitable orders. I guess that crowd figures they get what they pay for and grocery store prices weren't tempting them.
Another thing to think about is the fact that this woman is a friend of your sister. Has your sister told her she would get a "friend" discount or do you feel like you would give her a discount for being your sister's friend? If so, then quote her the real price and then tell her but since she is your sisters friend you will be happy to try and work within her budget this time.
The price all depends on the detalis of the cake.... if it is stacked or has a lot of detail it will cost more. Obviously a sheet cake would be cheaper than a stacked cake, etc. Once you get the details of what she has in mind, you can come up with a design and quote her a price.
Remember, just because you wouldnt pay a lot for a cake doesn't mean others wont. You have to cover the cost of the ingredients and also the time you spend decorating.
Good luck! |
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MrsMom
Frequent Member
Joined: Sep 14, 2006
Posts: 450
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Fri Apr 25, 2008 1:06 pm |
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I don't think my SIL made her think she'd get a discount because she is my SIL's friend. However, I do think that maybe she made it sound like I would be cheap because I'm just starting. I called SIL to tell her I got the email from S (her friend) since she had given me the heads-up and she said something to the effect of "I told her you were looking to build your portfolio."
Ugh....it's such a sticky subject. |
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MrsMom
Frequent Member
Joined: Sep 14, 2006
Posts: 450
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Fri Apr 25, 2008 1:55 pm |
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Oh, and crisc23...I know you are right. I can't give the cakes away.
The customer is pretty open to anything, as long as it is snail-themed. I just really want to do something custom and not a plain sheet cake. I want to show her what I can do but get a bit of $ to make it worth it at the same time. |
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evaruggiero
Junior Member
Joined: Jan 11, 2007
Posts: 64
Location: Carrollton, TX
Birthday: Jan 30
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Fri Apr 25, 2008 2:19 pm |
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I just started taking cake orders and i honestly tell you set your price right from the start. What i've been doing is charging $1.50 for buttercream and $2.00 for fondant, bows or fondat toppers priced separetly. At first I felt weird about pricing but as everyone else says here on CC you have to chardge for you time, this is art!!! |
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merissa
Forum SuperStar!
Joined: Jun 07, 2006
Posts: 4415
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Fri Apr 25, 2008 2:21 pm |
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If you WANT to do it, then do it. But I would tell her that you are doing it for a deep discount for the experience. The next cakes are going to cost more. |
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poshcakedesigns
Frequent Member
Joined: Jan 15, 2008
Posts: 478
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Fri Apr 25, 2008 2:25 pm |
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Don't sell yourself short. You are already at the 'advantage' point because she doesn't like the way the other bakery makes their cakes.
I have learned just because someone says their budget is one amount doesn't mean they aren't willing to pay more if it's something they really want.
I would draw up some ideas and present them to her. Show her several design options to choose from and tell her the price for each one (you can vary the prices). If she see's one she likes she will more than likely come up with the extra cash to get it.
I agree with the others it's hard to raise your price on a customer after they already got one deal. They will expect it each and every time. |
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indydebi
Forum SuperStar!
Joined: Jul 07, 2006
Posts: 15085
Location: Indianapolis IN
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Fri Apr 25, 2008 2:32 pm |
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| tiggy2 wrote: | | That's a $1.00 or less per serving! I'd show her the twinkie aisle at walmart. |
What I call a "Twinkie Budget Bride" mentality!
nothing wrong with saying, "Oh gosh, for that kind of money, your best bet would be walmart. Thanks for checking with me!" |
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abw2005
Junior Member
Joined: Oct 22, 2007
Posts: 34
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Fri Apr 25, 2008 2:36 pm |
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Whether you are just starting out or not, you are still a decorator and should charge accordingly. I am 'just starting out' as well and doing my first wedding cake for 300 people at $800 - and that's for MY friend! I personally wouldn't go much less than $2/serving, your time and effort is worth more than $40 for 50 servings!!! |
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fiddlesticks
Forum SuperStar!
Joined: Aug 05, 2006
Posts: 3833
Location: Indiana
Gallery Supporter Member
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Fri Apr 25, 2008 2:37 pm |
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If I have someone ask about a cake style and they want some ideas, I email them different cakes and add the price next to it, that way they know what they can get for what amount of money! and they also have some choices of design that they probably have not thought about ! even if you dont have many to send out yet you can find some pic,s anywhere and say they are just samples and wont look just like that! You will make it your own design but its good for ideas ! and prices to ! Works for me anyway ! |
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gr8yf
Junior Member
Joined: Sep 27, 2007
Posts: 76
Location: Arizona
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Fri Apr 25, 2008 2:49 pm |
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Less then $1. is not a business it's a charity. |
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jkalman
Forum SuperStar!
Joined: Mar 12, 2007
Posts: 4226
Location: Southern New Hampshire
Birthday: Oct 28
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Fri Apr 25, 2008 2:55 pm |
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| abw2005 wrote: | | Whether you are just starting out or not, you are still a decorator and should charge accordingly. I am 'just starting out' as well and doing my first wedding cake for 300 people at $800 - and that's for MY friend! I personally wouldn't go much less than $2/serving, your time and effort is worth more than $40 for 50 servings!!! |
 Ditto 100%
Doing cakes for less than $2/serving you won't make enought money to make it worth all the time and effort. It takes time to shop for ingredients, bake, level, fill, decorate, clean up.. you get the picture. It wuld cost me $40 to make a cake for 50 ppl in ingredients alone. |
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pjmw
Frequent Member
Joined: Jan 03, 2008
Posts: 242
Location: Illinois
Birthday: Jul 29
Gallery Supporter Member
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Fri Apr 25, 2008 2:58 pm |
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Supply prices are going up across the board. Make sure you are making what you need to make. Even new decorators need to be paid for their time and skill. It's a weakness of mine too to want to undercharge, but have learned that I just have to be compensated for my ability and time. If that is not in their budget, then they will have to eat overprocessed icky icing from a chain bakery. |
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