Anyone Raising Their Prices?

Business By Jessica1817 Updated 30 Dec 2008 , 3:39pm by FromScratch

Jessica1817 Posted 26 Dec 2008 , 3:05pm
post #1 of 14

I'm debating with raising my prices. I don't want to scare anyone off with higher prices in this economy, but have kept pretty busy with the way the prices are now (mainly weddings) I don't know why, but going to $3 per serving from $2.75 seems like a big jump, even if its only a $0.25 increase. I want to be fair with what my work is worth, its just a hard call. Any suggestions?

13 replies
aligotmatt Posted 26 Dec 2008 , 3:56pm
post #2 of 14

I'm not feeling very organized in my thoughts right now, so I'm just going to ramble...

First, no I will not be raising my prices right now, I raised them about a $1 per servng over 2008 just to keep up with ingredient prices. They have stayed the same over the last couple of months, so my price stays the same, if the ingredient price changes, so will mine.

You have to determine what your price per serving makes you per hour, and with constantly increasing skills, you may be due a raise. Nobody is going to give you a raise in this business but yourself. No bride is going to ask to pay more per serving and most likely, nobody will tip you. When I started paying myself I looked around and found out that grocery store bakery employees in my area make around $9.50 per hour, so I certainly would NOT make less than that. So, once my cost, electric, gas to go shopping for the stuff... was covered, I started off paying myself $10 per hour. As my skills have gone up, I've raised my prices, giving myself raises. Often the cost + my pay is less than what the customer pays - there needs to be extra for advertising, equipment failure... so as not to make no money on the week my mixer breaks.

I don't think 25 cents per serving will scare anybody off though...

indydebi Posted 26 Dec 2008 , 10:21pm
post #3 of 14

Basically, you had a 10% increase.

Now let's see what prices have been raised on YOU ...... !

Per my excel chart that I live and breathe by, eggs went up 78% in a 6-month period. They seem to have stablized a bit now, but I take nothing for granted anymore.

The 50-lb bag of flour that I paid less than $6 for just 2 years ago now costs me about $27. That's .... what? ..... a 400% increase?

In 8 months, my sugar has gone from $22 to $29 per bag. That's about a 32% increase.

So if your and my suppliers have no problem passing on 30-70-400% cost increases to THEIR customers (us), I can't see why you are worried about a 10% increase to your customers.

I understand the economy effect and all of that, but the cost "is what it is". If I'm do a 10% increase and my costs are going up 30%, guess how long I WON'T be in business anymore? I'm sure your local grocery store, gas station, etc., are setting their pricing based on their costs.

I already did my price increase from $3.00 to $3.50 so I don't project doing a cake pricing increase anytime soon.

FlowerGirlMN Posted 27 Dec 2008 , 2:15am
post #4 of 14

I recently went from $5.00 to $5.50

Most of it was rising costs of ingredients, etc.. but part of it is that I can't afford to be looked at as the cheapest one. I don't want to undercut the other cakers in my skills range, and I definitely don't want to be the same price / cheaper than the crappiest place in town.

Yes, the one I have drama with, for those keeping score. LOL.

FromScratch Posted 27 Dec 2008 , 2:40am
post #5 of 14

LOL.. check one for FlowerGirlMN.. you *know* I'm keepin' score. icon_wink.gif

I haven't decided what I am going to do this coming year. I recently restructured my pricing. I am closed up for the holidays right now so I am going to sit down and calculate my costs and think about it over then next week and some.

leah_s Posted 27 Dec 2008 , 2:20pm
post #6 of 14

I had two price increases in 2008, so I'm planning to hold the line at least until mid year. I am thinking about putting in a minimum, though.

aligotmatt Posted 27 Dec 2008 , 3:11pm
post #7 of 14
Quote:
Originally Posted by leahs

I had two price increases in 2008, so I'm planning to hold the line at least until mid year. I am thinking about putting in a minimum, though.




I've been trying to come up with 2 minimums, one for April, May, June, September and October, and then another for the other months. I did 30 weddings in May '08, but 15 of them were under $250! When I'm slow in February, I wouldn't mind picking up a $250 cake, but not other months. I know I could just TELL people that, but if it was on my website, I think it would save some trouble.

indydebi Posted 27 Dec 2008 , 3:41pm
post #8 of 14
Quote:
Originally Posted by aligotmatt

When I'm slow in February, I wouldn't mind picking up a $250 cake, but not other months. I know I could just TELL people that, but if it was on my website, I think it would save some trouble.




It's not uncommon. There's a big caterer in town who has on their website that any wedding bookings May thru Sept must be 200 people minimum.

-K8memphis Posted 27 Dec 2008 , 3:55pm
post #9 of 14
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by aligotmatt

When I'm slow in February, I wouldn't mind picking up a $250 cake, but not other months. I know I could just TELL people that, but if it was on my website, I think it would save some trouble.



It's not uncommon. There's a big caterer in town who has on their website that any wedding bookings May thru Sept must be 200 people minimum.




Here's my question, when you set an amount of people as a minimum, you are locking out someone who wants a $10 per serving cake to feed a 100 folks kwim? Most of us will bite for a $1,000 order but if we set the bar at 200 servings, she's going elsewhere with that juicy order. So me I would set a dollar amount.

Just a minimum thought for you. (ha)

leah_s Posted 27 Dec 2008 , 4:05pm
post #10 of 14

The only other cake designer in my area who has a minimum, it's a $ minimum. That's what I was considering.

Cascades Posted 29 Dec 2008 , 9:34pm
post #11 of 14

I too was thinking about installing a dollar min. on my cakes. I charge $4 a person for B/C and $6 for fondant. Here in the San Francisco bay area that is still at least $1 to $2 under most. I was thinking of charging a flat $5 for any cake in the hopes that more people will order fondant instead of B/C. I would prefer to do fondant cakes. If they see they can get the fondant for the same price, maybe they will go for it.

I think in this economy though, instead of price increases. I might go more for having a Min. dollar amount on all wedding cake orders.

aligotmatt Posted 29 Dec 2008 , 9:51pm
post #12 of 14

My fondant and buttercream cakes are the same price per serving. I did that this fall, and have only booked fondant cakes since!

FlowerGirlMN Posted 29 Dec 2008 , 10:18pm
post #13 of 14

I charge more for buttercream cakes icon_smile.gif

FromScratch Posted 30 Dec 2008 , 3:39pm
post #14 of 14

Cascades... that's exactly what I did.. raised my base price to $5/serv and included fondant. More people will go for it if it's not an extra charge. You can leave it off if you really want, but it won't decrease the price any since BC is harder to get really smooth than fondant.. especially sine I use SMBC and there ain't no Melvira-ing that stuff. icon_lol.gif

I also have a $100 minimum order. It's a must. I hated doing all the work for $50. Now I don't care if you want just a 6" cake.. you pay $100. Not that anyone has gone for THAT deal.. icon_wink.gificon_lol.gif

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