Changing A Price On A Order

Business By wgoat5 Updated 16 Jun 2008 , 11:45pm by indydebi

wgoat5 Posted 16 Jun 2008 , 7:18pm
post #1 of 19

How do I go about calling the MOB to tell her my price increased?

Let me start out by saying...

#1 I don't want the order but feel I need to complete my promise.

#2 To make any money at all now due to gas increase I need to up it... from 2.50 to 3.50.

I have no contract with her yet... but this will be a lot of work AND running in the car...

7 dozen tuxedo strawberries
50 bride dress cookies
and a cake for 150

Is this unreasonable for me to do? The wedding is Aug. 30th. She hasn't finalized a contract yet. Nor has she told me style .. she said BLUE is all... so I really don't feel bad.. but.. what are your thoughts on this?

18 replies
authress Posted 16 Jun 2008 , 7:24pm
post #2 of 19

Easy--nothing is guaranteed until a contract is signed and a deposit paid. Now, I didn't say that saying it would be easy icon_biggrin.gif But, if you don't want the order anyway, isn't the worst thing that could happen--cancellation--actually the best?

abw2005 Posted 16 Jun 2008 , 7:34pm
post #3 of 19

If she wanted all of that for the price you quoted her, she should have paid you right then and there. I agree - no contract, anything goes!

johnson6ofus Posted 16 Jun 2008 , 7:42pm
post #4 of 19

No $$$, no contract --- it is all just "talk". With the price of EVERYTHING going up, we all expect price increases, do we not?

cakesbycathy Posted 16 Jun 2008 , 7:50pm
post #5 of 19

Dear MOB,
I am just checking to see if you are still interested in the order we discussed on XX. If so, I must tell you that due to the rising cost of gas and food, your srawberries, cookies and cake will now cost $350.
If you would like to place your order, please contact me no later than XX so that we can sign a contract and you can get me your deposit.

Sincerely,
Christi

If she gives you a hard time, then you can always very politely point out that "I'm sure it's costing you more to fill up your tank and buy your groceries these days. Well, it costs me more as well."

BTW for all that work you are WAY undercharging!!

tiggy2 Posted 16 Jun 2008 , 7:53pm
post #6 of 19

If there wasn't a contract and a deposit the price wasn't guranteed. Until you have a contract I wouldn't even consider it an order. I would call or send an email quoting increased prices and a deadline for payment. If you don't hear from her by that date I wouldn't consider it an order.

ccr03 Posted 16 Jun 2008 , 7:58pm
post #7 of 19

Yeah, I completely disagree. As it has been stated on here before 'cake cilivans' don't know the 'ordering process' - especially on wedding cakes.

You're talking about at least another $150 bucks. I totally understand teh need to increase prices - I've done it myself - but to just automatically increase it w/o giving proper notice.

I am HUGE on customer service and always try to put myself in my customers shoes. Can I offer a suggestion? Instead of spurring this increase on her, let her know - and all of your customers - that

"Due to raising gas and raw material prices, you have been forced to raise yours as well. This price increase will go into effect immediately. Any outstanding quotes must be ordered by XX date to receive the priced quoted. Any quotes ordered after that date are subject to reflect the current price increase."

Honestly, I think it just shows bad customer service to increase a price w/o giving the customer time to respond - especially when they already have a quote from you.

just my little ol' opinion!!

gottabakenow Posted 16 Jun 2008 , 8:00pm
post #8 of 19
Quote:
Originally Posted by cakesbycathy

Dear MOB,
I am just checking to see if you are still interested in the order we discussed on XX. If so, I must tell you that due to the rising cost of gas and food, your srawberries, cookies and cake will now cost $350.
If you would like to place your order, please contact me no later than XX so that we can sign a contract and you can get me your deposit.

Sincerely,
Christi

If she gives you a hard time, then you can always very politely point out that "I'm sure it's costing you more to fill up your tank and buy your groceries these days. Well, it costs me more as well."

BTW for all that work you are WAY undercharging!!




Christi didn't mention what she charged her. she said the cake is for 150 servings, is that what you were talking about?

FromScratch Posted 16 Jun 2008 , 8:01pm
post #9 of 19

Tell me that's per serving right?? Not like Cathy said and $250 total.. I'll slap you up goat lady.. icon_wink.gif

Easy though.. she had no contract and you hadn't discussed her specific design so there was no price guarantee. Simply tell her for what you are asking for it will be $3.50 per serving on the cake and $4 per cookie and $4 per berry..

jennifer7777 Posted 16 Jun 2008 , 8:01pm
post #10 of 19

I think the OP is saying that the cake is for 150 people, not all of that for $150...am I correct?

I think cakesbycathy had perfect wording to use. However, if this lady gives you a hard time..."Well Ma'am, I'm sorry I will not be able to accomodate you order at this time. May I refer you to 'X', and maybe they will better suit your needs. Thank you for considering me though"

That's it, that's all.

poshcakedesigns Posted 16 Jun 2008 , 8:06pm
post #11 of 19

Tough one...I kinda see it from both sides.

No she didn't sign a contract so she could be out of luck.

but then from the business stand point to keep 'good' relations. I would maybe send her an email and say the price I quoted you is only good for the next 3 days after that date our prices will be increasing across the board due to the economy and daily price hikes.

LeanneW Posted 16 Jun 2008 , 8:22pm
post #12 of 19

I increased my prices three weeks ago. I have a bride in the ordering process and I had told her my original price per serving, then I increased my prices.

I had 3 options:

1- charge original price
2- explain prices went up and charge new price, since we hadn't signed anything
3 - (this is what I did) Explain prices went up and that I understand we had originally discussed pricing at $x.xx. I created a proposal based on meeting in the middle (split the diference) and gave her a deadline to book under that price. Basically the proposal had an expiration.

If she signs it and pays the deposit with in 7 days she will get a cheaper price and if she doesn't I will draw up a new proposal at my full new price.

She loved the idea of splitting the difference and understood that the cost of business goes up and therfore so does the price. She was very good about it.

it's all in how you present it to the customer, giving them a deadline to lock in a lower price gives them an opportunity but doesn't leave you on the hook for $2.50/srv unitl August.

costumeczar Posted 16 Jun 2008 , 8:25pm
post #13 of 19

I think that the assumption that people don't understand the wedding cake ordering process is wrong...People are pretty well-educated on the wedding thing these days, what with all the magazines and books there are out there. The idea of a contract shouldn't be so foreign to them that it would take them by surprise that they should have had a signed contract to hire a vendor.

I'd email her and tell her that the price has gone, up, and that you need to hear from her in xx number of days to assure her a spot on your calendar. If you don't hear from her, then she was never your customer anyway. For all you know, she hired someone else already! Just because you give out a quote, it doesn't mean that you've booked the business. That's what deposits are for, and people who are planning weddings know that. Don't kill yourself worrying about it if she doesn't get back to you, it just means that she's gone somewhere else.

michellenj Posted 16 Jun 2008 , 10:02pm
post #14 of 19

Does this client think she's booked?

I'm sure that she will understand that prices are going up.

snarkybaker Posted 16 Jun 2008 , 10:15pm
post #15 of 19

Unless you have a deposit, at our bakery, it is not an order, it is a quote. It is easy enough to to send out an email, to ALL of your clients, that explaining that due to rising commodity prices, all of your prices have gone up $.50 a serving.

indydebi Posted 16 Jun 2008 , 10:31pm
post #16 of 19

"All pricing subject to change without notice".

If I'm shopping for a dress, and I try on one that is $20, and I DON'T put it in lay-away, and when I go back 4 weeks later and it's now $25, it's no one's fault but mine and the store owes me no explanation.

As I tell my brides/MOB's regarding pricing, "you buy groceries and gas ... you know what we're all going thru." And they quickly agree. This wording kinda puts us "on the same side" .... just two ladies trying to survive in a world where everything is going up on EVERYONE.

It's also why I keep very detailed spreadsheets on my supplies, so I can tell them SPECIFICALLY that my flour went up 35% in 3 weeks, eggs are going up 20% monthly, throw in conversations that include info you heard on the Wall Street Journal Report citing how bread, milk, eggs and cheese went up 18% in one month and "....they said high food prices are here to stay."

I also post this stuff on the front page of my website, so they know WHY they are paying the price they are paying.

Doug Posted 16 Jun 2008 , 10:33pm
post #17 of 19

guy's perspective ... and ladies can relate too.

so, this past Saturday I took my car to the shop, it need an oil change and "something" wasn't right w/ the a/c and suspension seemed a bit iffy too -- oh and are the brakes ok??

after sitting the waiting room for about an hour, the service tech comes and asks me to go look at my car (dum-dum-dum -- this can't be good).

so off I go... well, the "something" turns out to be:
broken motor mount causing problems w/ both radiator and a/c. Do I want to fix it -- DUH! yes!

back to waiting room.

1/2 hour later -- service tech is back -- with demeanor of concerned doctor about to lay the "C" word on you.

well, Mr. F...., our guys are recommending --long list with a few items we hadn't discussed previously. What do you want to do?

me: order the parts and let's get it fixed -- I've got a long trip this summer! BTW: how much?

Tech: these are the estimates on the parts and we won't know labor until we fix it.

Me: ok, call me when the parts are in. Oh and I'll need a loaner!

-----

now -- I have a VERBAL contract w/ the company to order the parts which in good faith I should pay for.

and I have an "understanding" that they'll repair it ASAP and of course I will pay for labor.

but do I have a final price --- NOT ON YOUR LIFE!

I'll have a better idea of that when a) the parts are in and b) they consulted the "standard" rate book for car repairs (it lists the "standard" time it takes to do a repair -- they make money by working faster!

-----

so....applying to cake.

no contract -- just an ESTIMATE


and you of use hasn't had plumbing, electrical, etc. done based on an ESTIMATE and then paid MORE?????

----

customer wants a firm price -- customer signs contract and puts $$ in my hand.

until then -- ESTIMATE!

and those can change by the minute!

(did I tell you about the day I hit the gas station 1 -- that's right 1-- minute before the price went up 5 cents!?!?!?!? -- they were walking to the sign to change the price and couldn't legally change the pumps before the sign* -- one minute later and my estimate on how much the cost of filling up would have been TOAST!)

*drat - the stations around here are putting in electronic signs they can change almost instantly! -- there goes beating the price change!

wgoat5 Posted 16 Jun 2008 , 11:19pm
post #18 of 19

Ok guys here is my cost to her...

3.25 per slice is 525 for the cake that feeds 150
2.50 per strawberry (I know.. SLAP me) but this is just a estimate as it will be on a seperate order because I don't know what strawberries will be a day before the wedding... 7 dozen strawberries at 2.50 a strawberry (so far) will be 210.00
50 cookies at 2.50 a piece is 125.00.

This was before I canceled her order..

she was already complaining on the phone... MOB couldn't tell me a exact date the bride would be in ... a month before at least she said... she then said she decided NOT to do the cookies... I decided this MOB was someone I didn't want to deal with...

Sooooo.... canceled the order

She was starting to be hard to handle.. wanted a round stacked cake to feed 150 but in 3 tiers NOT 4... she said NO to the 4th tier.. I said I cant make it look right in 3 tiers..


SO no more worries.. this bride is GONE

I can relax now

Thank you all for your advise and I do understand what each and everyone of you have been saying icon_smile.gif

indydebi Posted 16 Jun 2008 , 11:45pm
post #19 of 19
Quote:
Originally Posted by Doug

and you of use hasn't had plumbing, electrical, etc. done based on an ESTIMATE and then paid MORE?????!




The build out on my shop .... estimated at $15K ..... I paid $28K.

Doug, hubby works at a car dealership. Used to work in the service dept office. He would just want to hug an understanding customer like you! Example that happened a LOT: Guy has a coupon for a $39.95 oil change. Hubby bills him $42 and some change, after adding sales tax. Guy hits the roof because "...the coupon SAID $39.95!"

In general .... people are idiots. icon_razz.gif

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