Morning CC'ers

With the prices of everything going up, it is starting to eat into my profit margin and I am thinking of raising my prices.

Does anyone else feel like they need to start raising their prices?

I raised my prices according to what the supplies cost.

I'm going to have to do the same thing. I've put off a price increase as long as possible, but now it is actually going to have to be a pretty significant increase!

YES.. I am going to have to up my prices by at least $0.50/serving across the board and stop offering free delivery within 20 miles.. gas is just too outrageous.

I increased my prices about 2 months ago....Things like cupcakes and some cake sizes much more than others.I stopped doing cookies for sale as I was losing money and if I were to raise them according to the time put in to them...no one would pay the price per cookie so I said no more!!

I also raised my prices a couple months ago. The prices of supplies are getting ridiculous. I only offer delivery for wedding cakes and even at that, if it is too far away I add a delivery charge!

Prices are going up... nothing we can do about it, just ensure we keep getting paid...

I, as well, have raised my prices. I've also stopped offering free delivery in my town. Now, no matter how close clients are, if they don't want to pick it up I will charge them for delivery. It's so funny now that I have so many pick ups and rarely deliver anymore I should have done this a long time ago.

Same here on prices going up, I scratch bake using national name brand products so my prices have to increase unless I were to switch to generic/store brands and I just don't want to do that not knowing if the quailty of my cakes and cookies would suffer.

and I might have to consider a delivery fee with gas prices what they are

Yes I agree I am going to start raising my prices too, I didn't realize how much certain things had gone up, until I had to make a cannoli cake. I know it cost me in the past to make the filling about $20.00 and when I just made the one it was almost $30.00 YIKES!!! So I will have to pass that onto my customers unfortunately. I am going to have a post on the front page of my website as well, stating that due to the circumstances I have to raise my prices. I have always charged a delivery fee $25.00 for up to 1 hour away, and then additional after that. Wedding cakes are a $75.00 delivery charge. I figure gas or not that is still taking up MY time, so I charge them for it. Hope this helps! Don't feel bad about it, in this economy everyone has to do what they can to survive!

Thanks guys, now I don't feel so bad having to raise them.

It's unfortunate but necessary.

I raised my prices across the board too and I am even thinking of increasing my delivery fee because of gas prices.

When I raised them I told my loyal customers that I resisted as much as I could, but just couldn't anymore.

I raised my prices in Jan. but it hasn't helped any.

I stagger my prices, current customers pay X amount, and new customers pay X amount. I consider this a "reward" for the business and for referring business.

I normally offer free delivery around town, but I am going to have to add something from now on. I was thinking about every order I delivery within town , I add on like $2.00. Not much but it helps and usually I do other errands while there anyway.

It is really going to start affecting things I am affraid.

wow, I'd be afraid to have a different pricing structure for current customers and new ones. 90% of my new customers are referrals from current customers so what to say that the current customers won't place the order for the new customer just so they can get that price? Plus people talk. I also think it would be more confusing to me. I printed my price list and it's SO much easier for me to just pull out that sheet and do what I have to do.

I increased my prices May 1st and remodified my delivery fees. I posted a statement on my website a month before it went into affect.

I learned this from a Paul Mitchell Hair class I attended with my mom, she's a hair dresser.

I actually tell my current customers, they feel like they are special this way. And the next time I raise my prices, which will have to soon, all current will be the same. New customers for 2009 will pay X and everyone else will be paying X.

My prices are low, really low, so we are talking about difference of .50-.25 a serving. If works okay for me, different things for different people.

Oh, don't get me wrong - I totally see how it works! Wholesale vs. retail prices - totally get that!

And I am much more inclined to give current customers a discount (if I'm in the mood) vs. a new customer.

Plus, I get lazy when it comes to pricing

I just implemented a 20% across the board price increase on 6-1-08. On the home page of my website, I put updates regarding pricing and food supplies so brides will understand what is going on.

I keep a big spreadsheet on everything I buy .... with dates on when the prices changed. I just got a truck delivery this morning and posted the pricing. My eggs, which I buy 45 dozen at a time at a truck rate, went up 7.7% in just two weeks!! If you assume a 7% increase every 2 week, that's a 182% annual increase ... using simple math, not compounded math.

The margarine I use (I buy it in 30 lb cases and I bought 2 cases this week) went up 8.6% in two weeks. Crisco at Sam's is up 15%.

I used to do free (catering) delivery within a 1 hour drive (approx 60 miles one way). I'm now down to a 15 minute drive and I charge $1.25/mile if it's over 15 miles (using mapquest to determine round trip miles).

But I tell my brides, "You go to the grocery, you buy gas ... you know what we're all up against." and they understand and agree.

I just raised my prices a month ago. I don't do any free deliveries, and I'm thinking I might have to raise my delivery rate too.

I give current customers price breaks at times, but I wouldn't dare lock them in to today's price for any amount of time. Most of my business is from my current customers and if I have to raise prices to make up for what I am paying out for ingredients they have to pay too.. I wouldn't be fixing the problem if I didn't charge them.

I'll usually tell them well this cake would cost $XXX but for YOU.. I can give a XX% discount. Makes them feel special (because they are) and then I don't have to have new customers feeling like they are footing the bill for the price increase.

With this crazy economy, it seems like prices have to go up. I charge $2.50/serving now, and I'm not sure if people will pay $3. That's the conundrum-people aren't willing to pay $3 for my cakes...
Right now I charge $1/mile for delivery, but gas had doubled since I started a year ago, and am going up to $2.