Question About Pricing...

Decorating By Ruby2uesday Updated 15 Jun 2008 , 2:59am by CharmingConfections

Ruby2uesday Posted 15 Jun 2008 , 2:00am
post #1 of 10

Ok, so i have a coworkers mom who asked me to make a couple grad cakes for her daughter and 2 friends grad party. there's going to be about 150+. This is really going to be my first "selling" cake so i went around to the local areas (walmart and the local bakery) to price before i gave her a quote... Walmart 1/2 sheet was $21 for a single layer. the local bakery was 33 for a single layer. I was going to make 2 double layers and one is a from scratch recipe that they gave me. So if they bought at least enough for 150 (in my estimates) at the other places with single layers (and i knew they weren't wanting walmart) they would have paid at least 120-150ish. i told her $100. i knew she would "cough" at the price but she didn't say no. she said she'd talk to her dh and call me on monday. (cakes are needed by July 5th) i didn't want to sell myself short, but do you think i over priced??? i hope not! I was going to do buttercream frosting w/ Fondant accents (grad cap and such) on one and then something cool i hadn't decided on for the 2nd. I got a free riegn type of thing. anyway, thanks for listening!! icon_smile.gif

9 replies
smab109 Posted 15 Jun 2008 , 2:06am
post #2 of 10

IMO, you didnt over price, you under priced! Less than $1 per serving for a cake with fondant accents..?

pinklesley1 Posted 15 Jun 2008 , 2:07am
post #3 of 10

i dont think that you over charged... u undercharged her if anything.
she is getting 150 silces for 100 ... thats .67 a slice....
she would be craxy not to do it.. i would...

Ruby2uesday Posted 15 Jun 2008 , 2:20am
post #4 of 10

well it does make me feel a little better. at least i didn't overcharge! But i figured, this was my first cake for "profit" and 150-200 pairs of eyes will be seeing it so if it's good with word of mouth it could generate some more offers! Ya know!

pinklesley1 Posted 15 Jun 2008 , 2:23am
post #5 of 10

i was like that with my first three cakes, just charged for what it cost me ... but then sometimes people take that over board... and want you to keep charging them that cheap... some people just dont think ... they want you to work for free...

just dont keep charging that cheap....

remember that you put in heart and love ... charge for that...

TexasSugar Posted 15 Jun 2008 , 2:36am
post #6 of 10

Two of the most important things to think about when you charge...

You are NOT Walmart. You can not compete with their prices. Walmarts cakes are delivered frozen and their icing comes in buckets. Their employees spend the least amount of time decorating the cakes that they can. They do not have the over head that you do, so they can charge less.

Yon on the other hand are baking custome cakes to order. You have to use your eletricity and water along with everything else you put in the cake. You will spend hours working on this cake where as Walmart would probably spend less than an hour. You are giving them fondant accents, can Walmart?

The next thing to remember is your costs. Have you sat down to figure out how much it is going to cost you to make these? The price of eggs and everything else is just going up and up and up! Once you start figuring in all the little things you realise that it costs alot more than even you thought of.

Yes 150 pair of eyes may see the cake. And you may even have some ask her about the cake, and when she tells them she only paid $100 for it, then they are going to come to you wanting a grand cake for peanuts.

CharmingConfections Posted 15 Jun 2008 , 2:43am
post #7 of 10

If she decides she wants you to do it, i would mention to her if anyone else asks her about the cake, that you are doing it for a discount for her. If someone else is interested the price would be higher. That way those that see it and ask her wont be expecting you to make a "grand cake for peanuts".

Ruby2uesday Posted 15 Jun 2008 , 2:52am
post #8 of 10

Texas... i just have to say first of all i love that cake in your avatar

and Charming... i was thinking that too!!! i really need to hammer down a price matrix. so that way it's there and not so negotiable! ya know! lol

moxey2000 Posted 15 Jun 2008 , 2:54am
post #9 of 10
Originally Posted by CharmingConfections

If she decides she wants you to do it, i would mention to her if anyone else asks her about the cake, that you are doing it for a discount for her. If someone else is interested the price would be higher. That way those that see it and ask her wont be expecting you to make a "grand cake for peanuts".

Excellent advice. This is what I've done with cakes that I've heavily discounted. I consider it advertising my talent and give the customer the credit for allowing me to do that. I make sure to tell them the price they're getting is because of the advertising opportunity and to please don't share that price with anyone who may be interested. It sort of makes them feel like they're doing me a favor and they're happy to cooperate.

CharmingConfections Posted 15 Jun 2008 , 2:59am
post #10 of 10

Yeah, the pricing thing is hard for me. I have gone through all my costs and have figured It COSTS me about $1 per serving to make.
I want to charge "what I'm worth" but then I feel like no one would order anything from me! I already have had some people ask me a price and then never get back to me.. but I am only making maybe $5 an hour on detailed cakes! A few others have told me I need to raise my prices and I've even been tipped because I was "too cheap!". What I've noticed, is that brides looking for wedding cakes have a better idea of prices for custom cakes and are the ones who say that my prices need to be higher. Those people who want a party cake usually think my prices are too high. I guess when it's just a birthday party a cake from Wal mart for $20 bucks sounds great compared to $2.+ per serving for a custom cake. People are willing to spend more for the big events in life. Anyway, good luck!

Quote by @%username% on %date%