It's The Economy Stupid

Business By izzybee Updated 15 Apr 2008 , 5:07pm by deb12g

izzybee Posted 15 Apr 2008 , 1:16am
post #1 of 10

OK, for all you full time cake decorating business out there:

I decided to enter the wedding market last year, and so far so good. However, this year, I have noticed my other special occasion cakes, for instance birthday cake orders, have really dropped off. People that used to always order birthday cakes, have not come to me this year after years of ordering. I did have to raise my prices .5%.

So my question is, have any of you noticed a difference in the type of orders you are getting this year vs. last?

Am baffled.

9 replies
indydebi Posted 15 Apr 2008 , 1:54am
post #2 of 10

First, did you mean you raised your prices 5 percent? or half of five percent? (.5% is half of one percent). icon_confused.gif

Considering that eggs are up 78%, flour is up 35%, cheapo margarine is up 15%, gas is going up daily, I think 5% (if that's what you mean) put you 1 step forward and 3 steps back. YOur customers should be happy you're only up 5%. icon_biggrin.gif

Are my orders different? Yes ... weddings seem to be getting bigger.

Average headcount for wedding cake orders last year was 111.3
Average headcount for wedding cake orders this year is 116 (up 5%)

Average headcount for catering orders last year was 102.9.
Average headcount for catering orders this year is 132 (up 30%)

The range for headcount for events range from 15 to over 600.

Last year I rec'd inquiries valued at over $351,000.
This year I've already rec'd inquiries valued at over $450,000.

I've already posted on my website that I'm doing a 20% price increase eff 6-1-08. Ironically, even tho' eggs and flour are up terribly, I am able to keep the cake pricing the same ...... for now.

littlecake Posted 15 Apr 2008 , 2:23am
post #3 of 10

I raised my prices across the board, no one seemed to notice...

GeminiRJ Posted 15 Apr 2008 , 11:58am
post #4 of 10

I know we've heard horror stories about the economy, but I haven't noticed much difference in my lifestyle or those around me. We're in the midwest, so that could be a deciding factor. Yes, everything is going up, as it always does. But around here, if it's something soembody really wants, they're still buying it.

aligotmatt Posted 15 Apr 2008 , 12:14pm
post #5 of 10

I've noticed a big change in my clients, but my business has drastically increased. I raised my prices in January from $3 a serving (for buttercream), to $3.25 and then again in March to $3.50, and I'm thinking by june they will be $4.00.

I have this on my website "All cakes consist of 4 layers of cake with 3 layers of filling and start at $3.50 per serving. Fondant covered cakes start at $4.50 per serving. All 3D cakes are priced based on design.

Due to the rapidly increasing cost of ingredients, the price of cakes is constantly being reassessed. The only way to guarantee a price is by putting a 50% deposit on your cake. "

Kiddiekakes Posted 15 Apr 2008 , 12:28pm
post #6 of 10

I think the economy everywhere around the world has risen...here in Calgary groceries have risen 40% in the last 5 years..Housing is unreal...the average starter home price here now is $435,000.All my baking stuff like shortening,flour etc has risen $3.00-$4.00 each so yes..I have raised my prices also!!Some cakes as much as $10.00 and forsure my cookies after that big order I did at Easter...I lost my butt on those but I had never done them at that quantity before...Tremendous amount of work!!

cocorum21 Posted 15 Apr 2008 , 1:30pm
post #7 of 10
Quote:
Originally Posted by aligotmatt

Due to the rapidly increasing cost of ingredients, the price of cakes is constantly being reassessed. The only way to guarantee a price is by putting a 50% deposit on your cake. "



I like that saying hope you don't mind if I use it?

aligotmatt Posted 15 Apr 2008 , 2:07pm
post #8 of 10

Use away!!

indydebi Posted 15 Apr 2008 , 2:28pm
post #9 of 10

Alison, I like that phrasing too! It's really good!!

deb12g Posted 15 Apr 2008 , 5:07pm
post #10 of 10

I'm in Louisiana, and the only thing I've noticed is that even though I raised my prices, business is much more brisk than last year. People don't seem to be in a bind for money. Also, weddings are larger, too - I do both cakes & catering, and things are really hopping!

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