So, I've done cakes for friends and family several years ago......mostly 'Wiltonized' cakes.....but now, I've been buying better supplies and really studying better techniques. I want to do this to make a tad bit of spending cash, as I am a SAHM.

So, this weekend, while driving around I noticed a new cake joint in my part of town.....called them for info.......$1.00 a serving.

How can I complete?

I am SOO discouraged. I know this is silly, and and I should be more resilient.....I just get so self-conscious about price......

Anyone else ever felt defeated when they see the competition?

did they have display cakes? do you know what their cakes look like? at $1 a serving I can't imagine their business could succeed even with sloppily decorated cake! That's barely more than wal-mart charges!

I am a SAHM in the process of becoming legal - but I have felt discourage about price. I had a friend ask how much I would charge for a cake that served 100 people and I knew she wouldn't go vey high so I qouted her 1.50 a slice and she about died - I thought we were going to have to call the EMT's. Anyways I don't have much advice as I need it too, but know your not the only one - hang in there and have fun.

well that all depends.. Are they making the cakes? or are they having them shipped in.. Because we have a small bakery if you call it that in our town only one an they ship their cakes in frozen. thats something you could tell your customers that yours are always fresh.

Do you know what kind of cakes they do? I know a small bakery opened up around here and her prices were insane, but when I started checking into it I found out that she did not do any fondant or gumpaste work, no 3D cakes, nothing special. Her cakes were basically grocery store type cakes with plastic cake kits.

Don't be discouraged. Are there dollar stores where you live? Do you buy all of your necessities there? Or do you go to some other shops. There will be a difference. You KNOW they can't continue and give quality for $1 a slice. Do a little snooping there. Buy a cake. Ask questions like you want to order a wedding cake. Ask about ingredients. You'll get your answer. I'm thinking you'll be in business a year from now.

I don't know if this will help, but don't let this set you back. Go in, check out the joint. Most places like this usually mass produce their stuff. Look at what they offer, look at what you offer or specialize in. When putting out or promoting your product really emphasize what you specialize in, be the best at it that you can be. Keep your price where are. I know you have a great product! People know a good product and will pay for it.
Hammy

I just luv ya'll girls!!! Thank you so much!

Well, I called (and fibbed ).....asking about a cake for DS. She was sweet....told me about their grand opening in July.....so DH and I are going to go check it out and see if I am better

All I could think of while on the phone was......I hope she's not on CC!!!!!!!!!!! LOL!!!!!!!!!!!!!!!!!!!

BTW - get some more cake pics on here!! We want to see more of your work! I love the one you have so far! Great job on all the little details!

hahaha - you are so funny! I understand, though - I look at some of my early cakes and think "ick" that looks awful! And I'm not nearly as good as many are on CC. And sometimes when I have a "disaster" I feel like I don't want to publish a pic because I'm almost embarrassed for others to see it! (there are a few of my old pics I haven't posted) Like my Lightning McQueen - I almost didn't post because his tail end fell! - but I posted anyway - CCers are awesome and I figure someone else might be helped by my booboo! This is also a great way to "document" your progress!

Have fun making all sorts of stuff and POST THE PICS!

Don't complete with their price. Offer a custom made cake creation at your price. At $1 a serving chances are they aren't going to be in business long after the bills start rolling in they don't have the money to cover them.

Set your price to what you need to make it worth while for you. There are grocery store cakes cause there are people that would never pay more than $20 a serving. And there are other cakes for those that want something, bigger, better, custom made.

Think of it like restaurants. You have cheap fast food, decently priced restaurants and then that place that offers three shrimp on a plate for $15. A little something for everyone and their 'budget'.

I would go in and talk about ordering a cake, why not bring in a picture of something fancy you see on here and talk about how much your friend, daugther, etc, would just be ecstatic to have it for their birthday! Get prices, find out what flavors of cake and fillings she offers, do some more research! Just knowing the price is not enough since, as others have said, $1 a serving is not going to get her far!

The cake in your gallery is lovely, I would love to see some more as well! I think you will be fine...

There is quite a bit of competition around here, but everybody offers different twists on their cakes. The most popular cake business here does fondant/gum paste flowers but not figures (at least she has none in any of her pictures). I still get all the business I would want or need and am frequently turning people away!

Have fun decorating a few cakes!! When I was decorating for my classes I would sometimes find a local event/charity to donate to... It's a good way to show people what you can do!

Underpricing is a cardinal sin for decorators, as far as I am concerned.

Yeah, it would be hard to undercut $1.00, but we all know it happens. I was referring to people who do sell at $1.00....it's ridiculous. Unless the product is truly worth a dollar. But that's a whole nother basket of apples.

You just set your prices to whatever they need to be for you and don't think twice about it. This place could be a blessing for you, people will hear $1.00 per slice and know they'll get what they pay for and come running to you! Enjoy the Mid-July entertainment!


Kit

If price was the only thing people based their purchases on, then we'd have nothing but Walmarts and McDonalds on every corner.

"The race to the bargain basement is an easy race to win ... but it's not a race you WANT to win."

I also meant to share a story before I ended that last post.

Today, in my BNI meeting, one of the guys stood up and said he had attended his nephews birthday party this past weekend, ".....and the cake was AWFUL!" (He then quickly pointed out that Debi didn't make it!). He goes on to say that, "Yes, having a good cake IS important." He said he asked his SIL, "Did you get this cake at Kroger?" SIL said, "I wish I HAD got it at Kroger!" (how bad is the cake when a grocery store cake is considered an upgrade? )

Price is not always the final factor.

Don't worry about the pricing. Unless she's a big financial genius, I'm going to be curious on how she can pay commercial expenses on $1/serving!

I will sidestep the baking from home/legality issues, and answer your question.

She may have underestimated her expenses, etc. and will quickly realize that she's not making much profit and will up her prices to a more reasonable figure. Or she may be discounting prices initially just to drum up business and get people in the door and trying her product.

How do YOU compete? You don't. When I set my prices, I didn't bother checking around. I based them on my expenses, how much profit I wanted to make and my skill level (I would have charged less if I hadn't been doing this almost 20 years). I would rather make 1 cake at $3/serving than 3 cakes at $1/serving. I charge more than most people in my town - I don't have a storefront, I don't advertise (I do have a website, and I have done one bridal show), and yet I have no shortage of customers.

don't worry sweetie - if her prices are that low she will be out of business soon or raising them soon. She will realize there is no way you can run a retail location on $1 per serving.