How Did You Decide On A Price Per Serving....

Business By yelle66 Updated 30 May 2008 , 4:14am by FromScratch

yelle66 Posted 29 May 2008 , 10:03pm
post #1 of 9

and have you raised prices since you started? I want to start out at a decent price so that I don't have to tell customers that I am raising them, but I don't want them to be way too high, either. I'm in Nebraska, so its not exactly a Mecca for high priced baked goods.

I also want to share my website, but I think I'm still too nervous yet. I can't take too much criticism yet icon_wink.gif However I really would like some (nice) opinions on things I could improve. Hmmmm....I may post it tonight. I don't know yet.

8 replies
KoryAK Posted 29 May 2008 , 10:18pm
post #2 of 9

I just kind of picked one in the beginning lol . I think I did call a couple of local places and priced myself in the low middle of that (but I was brand new). That price was $3.25 (or was it $3...?) per serving to start in 2004. I now have my own shop and start at $6.50 for anything tiered. Its about to go up, too.

indydebi Posted 29 May 2008 , 10:41pm
post #3 of 9

When I came to CC just short of 2 years ago, I was $1.75. Then I saw what CC'ers were getting for their cakes and went WOW!! ARE YOU KIDDING ME!!! icon_surprised.gif

Fortunately, instead of taking the view of "I'd never be able to get that for my cakes!", I looked at it with the view of "If THEY can get it, *I* can get it!" Some quick local research and my pricing started to climb.

I'm now at $3/serving and I recently discovered I'm in the "more expensive" category around here. And my wedding-cake-only orders are double what they were last year. (wedding-cake-only is a drop-off cake .... I dont' stay and serve it and I'm not doing the catering.)

SweetConfectionsChef Posted 29 May 2008 , 11:14pm
post #4 of 9

[quote="yelle66"] I'm in Nebraska, so its not exactly a Mecca for high priced baked goods.[quote]

Are you selling baked goods or homemade custom cakes??? icon_confused.gif

yelle66 Posted 29 May 2008 , 11:22pm
post #5 of 9

Custom cakes. I've been looking and even the people who make some pretty cool cakes and have been for years are only starting out at $2.25 a slice.

indydebi Posted 29 May 2008 , 11:54pm
post #6 of 9
Quote:
Originally Posted by yelle66

Custom cakes. I've been looking and even the people who make some pretty cool cakes and have been for years are only starting out at $2.25 a slice.




Doesnt' matter. Two of the places I checked that are only $2 are full fledged bakeries (not grocery store bakeries) that have been around for generations. I am 50% higher than they are and their pricing is not hurting me.

SweetConfectionsChef Posted 29 May 2008 , 11:54pm
post #7 of 9

The reason I asked is because there is a BIG difference in baked goods and custom made cakes. So they are starting at $2.25 per serving? Well, with prices what they are and the wages people need to make the starting price is probably misleading...if they are in fact actually making money. If you figure out what it costs to actually make the cake in ingredients & supplies then figure in a good hourly wage for yourself you will find that it is next to impossible to sell it for less than $3 per serving. If you can come up with a new market product...like I only sell round cakes iced in buttercream with fondant accents (no one else around here has these types of cakes) then you can charge pretty much what you want....people will pay for your product if it is good. I get customers all of the time from a cake shop down the road that only deals in buttercream and charges 1/2 of what I do (they are basically a small cake factory dealing in volume)...they want my product!

indydebi Posted 30 May 2008 , 2:33am
post #8 of 9
Quote:
Originally Posted by SweetConfectionsChef

So they are starting at $2.25 per serving?




Excellent point ....

In catering, I found one that had a buffet that started at $14.95/person. But after you added the 18% up-front gratuity, the 8% delivery fee, the this, the that, it came to over $20.00/person. My comparable buffet was $15.25.....with NO added fees. On the surface, it looked like they were $1 cheaper than me. When you do the math ... they're not.

Cakes are the same way. Base price is $xx.xx. Add a fee for gumpaste, for fondant, for multi-flavors, for delivery, for this, for that ... are they (the competition) STILL cheaper than you after doing all of that?

And as SweetConfections says ... are you comparing apples to apples?

FromScratch Posted 30 May 2008 , 4:14am
post #9 of 9

I figured out how much it costs me to make a cake and figured out what I'd like to make for profit and went from there.

I decided that I make a really good product and that I should be compensated well for it. I am at $4/serving BC $5/serving fondant(or ganache). I wasn't going to lowball myself and fight to raise prices later.

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