Did I Charge Too Much?

Business By lizadams Updated 15 Jul 2008 , 1:15am by PinkZiab

lizadams Posted 11 Jul 2008 , 2:49am
post #1 of 28

Hi, I was wondering if I charge too much for a wedding shower cake? This lady wanted a wedding shower cake for 50 people, which was a red velvet cake with a logo name on it. I told her $1.50 a slice and the total would be 75.00 and she thought that was too much! What do you think? Thanks for any comments, I was just wondering if that was too much.
Liz with Denasdelights icon_confused.gif

27 replies
kelleym Posted 11 Jul 2008 , 3:52am
post #2 of 28
Quote:
Quote:

Hi, I was wondering if I charge too much for a wedding shower cake?




No.

The answer is always no.

For $1.50 per person you can direct this woman to the Twinkie/Ding Dong aisle, because that's roughly what she can buy for that price.

mgdqueen Posted 11 Jul 2008 , 12:49pm
post #3 of 28

That's the bare minimum anyone can charge I think. It's disheartening when people say you are too expensive, but they are used to paying for grocery store cakes, not yours. Stick to your guns.

dinas27 Posted 11 Jul 2008 , 1:24pm
post #4 of 28

Hi Dena - I know this is OT but I took a look at your website and noticed a few things, if I may ask.

Do you operate out of a licensed kitchen? I'm not sure of the requirements in your state but most states will not let you run a business out of your own home kitchen. I mention this only because many people do not know the legalities of starting a food service business. Even if you are willing to take the risk getting caught... you have a map of where you are right on the website.

Why do you start wedding cakes at $300? DO you have a serving minimum for wedding cakes? Ask only because weddings are not always very large... I did a wedding cake for a friend for only 50 ppl. As a potential bride I would be turned off that if I called my cake a 'wedding cake' it would definately be $300 but if I called it something else it might be less.

I hope you dont take offense to this, we all learn so much here on CC and like to help others.

emrldsky Posted 11 Jul 2008 , 4:18pm
post #5 of 28
Quote:
Originally Posted by dinas27


Do you operate out of a licensed kitchen? I'm not sure of the requirements in your state but most states will not let you run a business out of your own home kitchen. I mention this only because many people do not know the legalities of starting a food service business. Even if you are willing to take the risk getting caught... you have a map of where you are right on the website.




Unfortunately, I do not think that OK licenses home bakeries according to an "unofficial" document located at the state department of health web site: http://www.ok.gov/health/documents/Retail%20Foods257-2006.pdf

Page 34 of the pdf states:

Quote:
Quote:

310:257-5-2. Compliance with food law * [FDA 3-201.11]
a) Food shall be obtained from sources that comply with law.
b) Food prepared in a private home may not be used or offered for human consumption in a food service establishment.




Food service establishment is defined on pages 5 and 6, and do not include private homes.

Just thought I'd share that.

akgirl10 Posted 11 Jul 2008 , 5:11pm
post #6 of 28

I would charge more than 1.50, but that's just me.

Karema Posted 11 Jul 2008 , 7:24pm
post #7 of 28

Ok im not sure what her being licenced have to do with anything. Yes we all know that there is a great war between people who have shops legally and those that bake at home. I find it hilarious because most people start from home but don't want to admit it. The map doesnt have an adress so how will they know where she is located. I'm not trying to be mean but people will do what they have to do to survive. Especially with gas at almost $5 a gallon and more than half of society being in debt and not being able to afford to open a shop. We can go at this all day but that is not what she asked.

To get back to the matter at hand, I think you charged to little. Red velvet is a specialty cake according to me and could go for at least $3 per serving. IMHO. Maybe look at some of your prices. Ingredients are too expensive and I dont know how people do it for less than $2 per serving. Stick to you guns and you offered a fair price.

darandon Posted 11 Jul 2008 , 7:29pm
post #8 of 28
Quote:
Originally Posted by Karema



To get back to the matter at hand, I think you charged to little. Red velvet is a specialty cake according to me and could go for at least $3 per serving. IMHO. Maybe look at some of your prices. Ingredients are too expensive and I dont know how people do it for less than $2 per serving. Stick to you guns and you offered a fair price.




I totally agree with that you should have charged more - especially a red velvet. She needs to go to her local grocery to see if she can get the same cake she wanted you to make at their prices.

Edit Posted 11 Jul 2008 , 7:40pm
post #9 of 28

The grocery stores around us don't even offer red velvet cake.
Your price was way too fair.

mjandros Posted 11 Jul 2008 , 7:42pm
post #10 of 28

Thanks Karema for posting this part thumbs_up.gif - Ok im not sure what her being licenced have to do with anything. Yes we all know that there is a great war between people who have shops legally and those that bake at home. I find it hilarious because most people start from home but don't want to admit it. The map doesnt have an adress so how will they know where she is located. I'm not trying to be mean but people will do what they have to do to survive. Especially with gas at almost $5 a gallon and more than half of society being in debt and not being able to afford to open a shop. We can go at this all day but that is not what she asked.

I couldn't agree more........ icon_smile.gif

summernoelle Posted 11 Jul 2008 , 7:46pm
post #11 of 28

People just don't understand what goes into making these cakes. It's something you have to learn to accept. The right client WILL come along-believe it or not, people will pay extra $$ for a nice cake. You just have to wait for the right ones to order from you. Be patient-it will happen!

TandTHarrell Posted 11 Jul 2008 , 8:00pm
post #12 of 28
Quote:
Originally Posted by mjandros

Thanks Karema for posting this part thumbs_up.gif - Ok im not sure what her being licenced have to do with anything. Yes we all know that there is a great war between people who have shops legally and those that bake at home. I find it hilarious because most people start from home but don't want to admit it. The map doesnt have an adress so how will they know where she is located. I'm not trying to be mean but people will do what they have to do to survive. Especially with gas at almost $5 a gallon and more than half of society being in debt and not being able to afford to open a shop. We can go at this all day but that is not what she asked.

I couldn't agree more........ icon_smile.gif




Yes I agree. 100%.. Somethings are better left unsaid . SO WHAT..

To answer your question, I think you could have charged more.

icer101 Posted 11 Jul 2008 , 8:04pm
post #13 of 28

thanks kearma, for your input.... yes , lets stick to her question... i don,t think she asked if it was ok if she was licensed or not.... there is other threads that talk about that over and over and over.... what we all do is our business and no one elses on this site.. why get into someone elses business? and as to your question.... no you did not charge too much!!!!

CakeMommyTX Posted 11 Jul 2008 , 8:04pm
post #14 of 28

If it was me I would have charged $3.25 per serving plus the delivery fee for a total of $177.50. So I guess she's glad she did'nt call me. And I'm cheap!

dinas27 Posted 11 Jul 2008 , 8:11pm
post #15 of 28

well I bake from home too!

I wasnt trying to be rude or insulting just that she might want to be a little more careful than placing a map of where her home is! Anyone familiar with the area probably wouldnt have too much trouble figuring out where she lives

I'm really starting to dislike replying to any thread on this site. I mentioned that I was OT (off topic) and was trying to give a little bit on constructive feedback what I noticed on her site. I was just trying to help her NOT get into trouble. Not everyone knows the laws, and she is a newbie on this site and probably hasnt seen the millions of threads on legalities of licensing.

Gale Posted 11 Jul 2008 , 8:16pm
post #16 of 28

Dena,
I don't think you charged to much at all. Red velvet cakes can sometimes be a pain. I see you are a newbie...Welcome to this website. Please don't let the comments of some of those on this site scare you off. I honestly don't get why some people think they have to be the cake police!

Kitagrl Posted 11 Jul 2008 , 8:23pm
post #17 of 28

I've talked to well known bakers who baked from home illegally before buying their shop. They just lay low. Everyone pretty much does it. Who has the money to get licensed before they take their first Wilton class, anyhow? Its nobody's business. I've been decorating now for over 9 years and have only been licensed since January.

And I have been starting my prices at $2.50/serving. Makes a simple round bakery style cake awfully expensive, but then that's really not what I'm here to do...I'm here to make things you CANT get at the local bakery. If they want a simply bakery cake, I still have to charge my prices.

Karema Posted 11 Jul 2008 , 8:28pm
post #18 of 28

Dena I am sorry that you took offence to my comment. I didnt mean to offend you. That's why I said I wasnt trying to be mean. I just dont like when every topic turns into a war about legal and illegal. It seems that those who bake from home always are getting bashed and its nobodys business. I bake from home also and I have business cards and I dont have anything on there except for my phone # and city, state and zip. Thats it. But I thought it was weird that it took that turn because there was nothing on her website about being in a shop or not. Her website was very vague. Actually it said stop by and taste so it lead me to believe that she has a shop. If she doesnt thats still her problem. So Dena I do apologize if it sounded like I was coming down on you. Advice OP I saw your prices, look at a few things and maybe you can change a few things. Also to have wedding cakes listed at a minimum seems odd. But that is all your business and what you want to do, you decide.

Nyma Posted 11 Jul 2008 , 8:55pm
post #19 of 28

I truly believe that those kinds of replies that are OT and might put the person on the spot can be communicated thru a PM so nobody gets offended and we don't deviate the topic.
Just a thought!

buttercream_dreams Posted 11 Jul 2008 , 9:17pm
post #20 of 28
Quote:
Originally Posted by kelleym

Quote:
Quote:

Hi, I was wondering if I charge too much for a wedding shower cake?



No.

The answer is always no.

For $1.50 per person you can direct this woman to the Twinkie/Ding Dong aisle, because that's roughly what she can buy for that price.



LMAO!! I ABSOLUTELY love it! The next time my clients piss me off (yeah thats right, i'm biting the hand!) i'm totally using that one.

Not to badger the topic, as I know most of us hate to have contention around here, but I actually find the whole licensing argument quite fascinating.

I live in Canada, and while I may be entirely wrong, it seems things here are quite a bit more relaxed as far as licensing goes. I also do nails, and network on beautytech.net where most on the technicians (from all over) are quite annoyed by HBB that are unlicensed.

I understand it from the standpoint that the licensed techs/decorators have worked their asses off to become licensed and get that far, but that was also their own choice.
They could be baking "illegally" and working as often or as little as they like, and most likely charging less because of this if they were, and as such possibly appealing to a larger demographic etc etc...which leads me to the main question behind my fascination-
is it most annoying because they are baking from an "illegal" environment, and offering the same things you do from a "legal" one, and possibly creating a bit of competition?
or is it because of the actual legal aspect of it, and you think it is truly wrong?

If its because of the competition all i have to say is, there is more than enough. there is always enough to go around!

if it is because of the law, then i also understand this fully too, but give us (the law breakers) the benefit of the doubt as most of us I'm sure, are doing our best to be complient as far as health and saftey goes in our unlicensed environments.

jmh-yet long-o
icon_wink.gif

btw-i also do not claim any of my unlicensed earnings, which is also a big perk. icon_lol.gif

lizadams Posted 11 Jul 2008 , 10:19pm
post #21 of 28

Hi everyone, icon_smile.gif
I want to thank you all for your comments! I can't believe how much has responded. I didnât think I was charging too much. I am not angry or offended to others who state that I shouldn't be doing my business in my home. I take you information as a way of learning. I do understand the laws in Oklahoma but I am beginning to wondering if our government and the health Department think money grows on trees. I have tried to get a business loan but the banks around here state that in order for them to loan you money you have to be in business for 2 years, which on one hand is understanding but on the other hand is flat out stupid because if you can't get the capital to build your business then how can you be in business for 2 years when you have to be doing it in a commercial kitchen?? Also I have looked everywhere for a place to rent with a commercial kitchen and nothing is available. I have put an ad in the paper. I have even sent letters to many churches requesting to rent their kitchen but have only receive one responds. which was no. I do have a building on my property and hopefully be turn into a commercial kitchen, but right now I can afford it. I mean has anyone seen how much commercial equipment cost!! So yes I know right now what I am doing is illegal but this is the only way I know how to save money and hopefully soon get a commercial kitchen. I do understand that there is hard working businesses out there that are doing it the right way, but we all know that they started at the bottom too. Either someone such as a relative or friend loan them money, or they were rich to begin with, or they have 700 or better credit score that banks are happy to see them. So I am not going to give up. I believe God has a purpose for everyone and this is my purpose in life and my way to provide for my family. Thank you all again for your comments and I am grateful to find this website! Have a great weekendicon_smile.gif

dinas27 Posted 13 Jul 2008 , 4:31pm
post #22 of 28

Sounds like you have it all figured out and I hope your dream comes true. I hope that I didnt come across as offensive in my post and I am glad that you didnt take it that way.

Ignorance of the law is not a defense against the law. When I first started baking cakes I thought it wouldnt be an issue to sell out of your home because of all the farmers markets out there. I even sold one cake before I saw on earlene's website about the licensing issues! That was long before I discovered CC. I mentioned the license stuff just like I would if I was fishing with someone without a license - if you know you can make an informed decision. We have all made our choice and take the risk of getting caught. Very few home bakers seem to get caught - and most of the big names have started 'somewhere' too so maybe someday we'll see you on TV icon_lol.gif . Good luck!

poshcakedesigns Posted 13 Jul 2008 , 7:20pm
post #23 of 28

I don't think you charged enough. Let the WM shoppers go - they aren't your target market anyways. The right customers will come along - you just have to find the right ones and word about your cakes will spread like crazy.

I don't like doing cakes for those that balk at price because they will end up being a pain in the rear to deal with. They always try to find ways to get something extra for free because they think they are paying to much.

Btw - you do nice work.

CocoaBlondie Posted 13 Jul 2008 , 8:00pm
post #24 of 28
Quote:
Originally Posted by poshcakedesigns

I don't think you charged enough. Let the WM shoppers go - they aren't your target market anyways. The right customers will come along - you just have to find the right ones and word about your cakes will spread like crazy.

I don't like doing cakes for those that balk at price because they will end up being a pain in the rear to deal with. They always try to find ways to get something extra for free because they think they are paying to much.

Btw - you do nice work.




My thoughts exactly thumbs_up.gif It is what it is, if you don't like it go to walmart honey!!

imanah Posted 13 Jul 2008 , 9:27pm
post #25 of 28

legal or not...You are not being fair to yourself by charging $1.50 per person!

Yor time is more valuable then that, unless this is a freebe by means of getting more business. If that is the case then always charge the normal price then show the discount & the new price. You don't want this lady going around saying she found the best cheespest cake lady and refer all her cheapo friends to you icon_smile.gif

lizadams Posted 14 Jul 2008 , 1:13am
post #26 of 28
Quote:
Originally Posted by imanah

legal or not...You are not being fair to yourself by charging $1.50 per person!

Yor time is more valuable then that, unless this is a freebe by means of getting more business. If that is the case then always charge the normal price then show the discount & the new price. You don't want this lady going around saying she found the best cheespest cake lady and refer all her cheapo friends to you icon_smile.gif


That is so true. She called me back and stated that 1.50 a slice, (75.00) was more then what she wanted to pay, so I just told her nicely well good luck with finding you a cakeicon_smile.gif! I know that I am cheap because I look at other prices and I am like whoo, and she was complaining about 1.50!! I total agree that I am glad I didn't do it for any cheaper because she would probably told everyone how cheap her cake was and then I would be getting all these calls to do wedding cakes for 40 bucks or less, haha lol. Some people just want cakes for little as nothing!
Liz with Dena's Sweet Delights

CocoaBlondie Posted 14 Jul 2008 , 11:07pm
post #27 of 28

Good for you, I'm glad you stuck to your guns thumbs_up.gif Sorry, you lost an order though, don't worry more appreciative people will come a long, not cheapskates icon_lol.gif

PinkZiab Posted 15 Jul 2008 , 1:15am
post #28 of 28

Good for you for standing strong. I definitely would have charged more... I won't get out of bed for less than $3.50/serving lol and that's a bare-bones BC layer cake.

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