I'm curious as to how much everyone has had to raise their prices in the last five years, as the cost of everything else has skyrocketed?
In 2002 I realized I was not charging enough, and raised my prices by 50 cents/serving, and felt like this was about right for my area.
This year, I realized my costs for ingredients and supplies had gone way up, and increased another 50 cents/serving.
I know my prices are very reasonable and I had no choice but to increase, but I am running into significant "sticker shock" with people who had gotten cakes from me before, or been recommended by brides from several years ago, and seem to expect my prices to be the same as back then.
5 years is a pretty big span. EVERYTHING has gone up in 5 years, but the big sticker shock(s) have been in the past couple of years.
I can tell you that my pricing went up, not because of the cost of supplies, but because my eyes were opened when I found Cake Central.
When I joined 2 years ago, I sold cake for $1.75/serving. I'm now at $3.00/serving. I joined CC and saw some of the pricing these folks were getting for cakes. Fortunately, I didn't take the stance of "no way I could get that for MY cakes!" Nope .... didn't go there! I took the stance of "If THEY can do it, *I* can do it!" and my prices took a steady climb to be in line with the true market price.
In June, I had a 20% price increase on my catering, but left my cake price at $3. As I do some pricing evaluations, I might raise it to $3.25 or $3.50 but still maintain it as a flat rate (no nickel and dime pricing to brides). But if I do raise the price, it will be because of a marketing position reason .... not because of ingredient costs.
I've had to adjust my delivery fee because I do a lot of long-distance catering and of course gas is an impact on that (2 vehicles for a one-hour, one-way drive PLUS paying 4 staff members for 2 hours round trip drive time .... the payroll for drive time alone costs me $80).
Even tho' eggs and flour are running away in pricing, those aren't the things killing me. It's the never knowing what my chicken or salad dressing is going to cost from one truck delivery to the next that hurts me.
in the past 5 years i've gone up 50%...i know that sounds like a lot, but i was dumb when i started...and started out way to cheap.
i need to go up more...
We were just talking about this last night. I raised my prices by 50 cents as well, but I also raised my delivery prices quite a bit. My party cake orders have dropped dramitically (I think people just aren't spending the money on parties anymore) but my wedding cakes have gone up. SO I am happy.
I feel very good about my decision as of yesterday to raise my prices. I raised my BC cakes 30%. I left my cookie prices alone for the rest of the year. My pies and cheesecakes are the same also. I almost had a heart attack when I went to the warehouse to buy shortening and it went up $20 per box since June. I said enough is enough. I have no choice but to raise my prices. I am also raising my delivery fee which is going to be called "delivery and setup" on wedding cakes to $40 from $15, especially now that I'm going to be using Sugar Shack's foam core method of stacking. Those boards are outrageous at $6 apiece. And she uses 1 for every tier.
Amber
I just went through a price increase of .25 per serving. now it's $3.75 BC and $4.00 fondant. I refigured the delivery rate also. I charge for RT outside of a 35 mile radius of my zip here. Haven't had anyone really squawk much but, it is still early. I keep watching what everyone on here at CC is doing, and try to find out in my area what the charges have gone up to but not that many decorators in the area.
I have raised the price of my cakes about 30%.I hadn't raised them since I started 7 years ago so it was quite an increase.With the cost of everything rising in the last 2 years I had too!!
I still offer a free anniversary cake....and actually got this email from someone who suggested this wasn't enough:
your cakes look great just wanted to let you know that tradition says the top layer of the wedding cake is to be saved to use as 1st anniversary wedding cake. Suggest you supply free the grooms cake or bride shower cake.
I burst out laughing when I saw that email....Yeah sure...Do people think these things cost nothing???
I've been slowly and gradually raising prices....mine are hard to price b/c I get so many novelty cake orders, not just basic weddings or whatever.
I start buttercream stuff at about $3/serving (once in awhile lower if very plain). I still accidentally undercharge sometimes but am working on it. Fondant starts at $4/serving. 3D cakes start $4/buttercream or $5/fondant. Time consuming 3D cakes range btw $6-$7/serving. I also have minimum orders so that I'm not making some kind of really detailed cake for a party of 6 for way cheap.
I'm getting pretty good about charging for my work, but sometimes I mess up charging for ingredients. I find myself sometimes undercharging when the person orders something more expensive like ganache or something. I just charged a lady 3.50/serving for a larger wedding cake that is nothing put poured ganache and a border...realized that for supplies I should have charged like $4/serving even though the cake itself is simple.
I still offer a free anniversary cake....and actually got this email from someone who suggested this wasn't enough:
your cakes look great just wanted to let you know that tradition says the top layer of the wedding cake is to be saved to use as 1st anniversary wedding cake. Suggest you supply free the grooms cake or bride shower cake.
I burst out laughing when I saw that email....Yeah sure...Do people think these things cost nothing???
GIve them this history and tell them when THEY have their child right away for the "traditional" christening, then you'll start giving them the free cake now: 
There is hardly a bride today who can't resist saving the top layer of her multi-tiered cake. Most couples freeze the cake with the intention of sharing it on their first wedding anniversary. The tradition has its roots in the late 19th century when grand cakes were baked for christenings. It was assumed that the christening would occur soon after the wedding ceremony, so the two ceremonies were often linked, as were the cakes. With wedding cakes becoming more and more fancy and elaborate, the christening cake quickly took a back seat to the wedding cake. When three-tiered cakes became popular, the top tier was often left over. A subsequent christening provided a perfect opportunity to finish the cake. Couples could then logically rationalize the need for three tiers --- the bottom tier for the reception, the middle tier for distributing and the top for the christening. As the time between the weddings and the christenings widened, the two events became disassociated, and the reason for saving the top tier changed. Regardless of the underlying reason, when the couple finally does eat the top tier, it serves as a very pleasant reminder of what was their very special day.
I've had a couple brides say they meant to save the top tier but instead started craving it after their honeymoon and ate it all up. LOL.
I don't really offer the free top tier...I just provide a box and wrapping instructions if they decide to keep it. I figure its too many logistics to keep track of a year later. I think its neat though.
[quote="loriemoms"]I still offer a free anniversary cake....and actually got this email from someone who suggested this wasn't enough:
your cakes look great just wanted to let you know that tradition says the top layer of the wedding cake is to be saved to use as 1st anniversary wedding cake. Suggest you supply free the grooms cake or bride shower cake. 
The nerve of some people!! I would love to know your response. I can only imagine what mine would have been.
I've had a couple brides say they meant to save the top tier but instead started craving it after their honeymoon and ate it all up. LOL.
I don't really offer the free top tier...I just provide a box and wrapping instructions if they decide to keep it. I figure its too many logistics to keep track of a year later. I think its neat though.
OMGosh..this reminds me of a funny story, a couple of years ago a woman called me...kinda frantic..."do you remember the so and so wedding you did about a year ago?"...of course i didn't.
she was in desperate need of a 8 inch round that matched it exactly....i told them i could if they brought me a pic (i don't even take pics of my wedding cakes bad me)
then it hit me..."you guys ATE the anniversary cake ,huh?
"yeah, it was my sister's wedding, she kept the cake in my freezer since hers was to small....my husband and i didn't think much of the guy she married....anyway one night we got a craving...he said "she'll never be married to that bum a year...let's eat the cake!"
then she goes..."now their anniversary is next week...SHE'LL KILL ME!
well she brought i the pic, i made the cake, she took it home and froze it...and we all lived happily ever after...
i just thought it sounded like a plot off seinfeld...lol
I can tell you that my pricing went up, not because of the cost of supplies, but because my eyes were opened when I found Cake Central
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I totally agree. I hadn't raised my prices in 4 years. I finally did raise them this Summer. I went up $10.00 on every cake size. I went up to $3.00 per slice for wedding cakes. All of my customers have gladly paid the difference...without complaint. I have been very blessed for that. Plus, it has given me a new vigor to work on the cakes. It feels good to get paid what they are worth.
I raised my prices and I'm the most expensive in the area and my business has not declined. If anyone complains I just explain to them that due to the increase in ingredients and delivery fees ( if I can't buy it locally) that my prices need to increase.
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