Should I Lower My Prices?

Business By ljhow623 Updated 25 Jan 2009 , 9:15pm by chutzpah

ljhow623 Posted 24 Jan 2009 , 9:04pm
post #1 of 10

So I went to two bridal shows a couple of weeks ago as my daughter is in the beginning stages of planning her wedding. The first show only had one cake vendor. The cakes looked like they have been demos for several years as there were chunks of frosting missing and just were not that pretty anymore. The second show I went to there were 6 vendors. Which was really cool as I got to see what it would be like when I do my bridal show.

Anyway, I set my prices at least $1.00 under the main bakeries around my local area (Buttercream $3.50, Fondant $4.50). Well to my shock, I asked the bakers there what their prices were. The majority of them were $1.75 and up.

Im contemplating lowering my pricing so that I can be more compatible with the competition. The problem I have is that I have already booked three weddings with my current prices and I dont want those brides to see that I have lowered my prices.

Any suggestions here?

Thanks,
Lisa

9 replies
Kitagrl Posted 24 Jan 2009 , 9:17pm
post #2 of 10

I wouldn't....are you in a rural area or city area in NY? I didn't think the cost of living was that low in NY....I think your current pricing sounds great, esp if brides are booking with you.

Kiddiekakes Posted 24 Jan 2009 , 9:26pm
post #3 of 10

I too wouldn't lower your prices.Almost everywhere you go and most decoraters you hear from are charging between $3.00-$5.00 a serving..that is the smaller areas as well! $1.75 and up is very vague and could be a simple buttercream cake with no embellishments..It may start at $1.75 but end up being $5.00 a serving in the end!Depends on what the Bride chooses.

__Jamie__ Posted 24 Jan 2009 , 10:11pm
post #4 of 10
Quote:
Originally Posted by ljhow623

Well to my shock, I asked the bakers there what their prices were. The majority of them were $1.75 and up.




Let me get this straight...you say bakeries right? Not bakers? When you say bakery, I take it as a large, informal, mass produced (but still good), no frills kind of buttercream roses and shell piping kind of places. Where they get massive amount of ingredients in bulk, and have high turnover of generally plain jane kind of cakes. So...$1.75, doesn't sound out of line for a place like that to me.

Are you that kind of place? No....you custom make....ok, I don't need to go any further. Don't even think about lowering your price. In fact, just because it is Saturday, raise them .25 icon_twisted.gif

kelleym Posted 24 Jan 2009 , 11:03pm
post #5 of 10

If you're booking weddings and brides are paying your current prices, why on earth would you lower them? 3 brides have basically said to you "yes, you're worth it". That's not an accident. Your prices sound spot on to me.

tannersmom Posted 24 Jan 2009 , 11:19pm
post #6 of 10

I BBF's daughter is getting married in the outer banks (N.C.) and she ordered a wedding cake (from a local baker in the obx) to feed 50. It is key lime with sea shells. Her quote was $8.00 a serving. So $400.00 for a cake to feed 50. They did say that her cakes were absolutely delicious. And worth it. So don't lower your prices.

ljhow623 Posted 25 Jan 2009 , 2:54pm
post #7 of 10

Thanks guys!

You're points are well taken. I was just in shock at the prices.

My prices are staying where they are!

sweetcakes Posted 25 Jan 2009 , 8:16pm
post #8 of 10

yea, it might be 1.75 but wait till they add on for all the decorations. its like buying a car, there's the base price then all the options that add on, no one gets their car for the base price, not once they see what they can have.

indydebi Posted 25 Jan 2009 , 8:31pm
post #9 of 10
Quote:
Originally Posted by sweetcakes

yea, it might be 1.75 but wait till they add on for all the decorations. its like buying a car, there's the base price then all the options that add on, no one gets their car for the base price, not once they see what they can have.




Yep. I am AMAZED at the stories my brides tell me about all of the upcharges they will be billed at other bakeries. Some are justifiable ... and I tell the brides that .... but others just make me shake my head in amazement.

chutzpah Posted 25 Jan 2009 , 9:15pm
post #10 of 10

C'mon over here missy and let me slap you up right good.

How can you even contemplate lowering your price`?

If I charged $1.75 I would be losing money just on ingredients, not to mention labor.

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