Price Shock!!!

Business By masturbaker Updated 16 Dec 2009 , 12:28pm by lchristi27

newmansmom2004 Posted 15 Dec 2009 , 5:29pm
post #31 of 68

If people in your area think your cakes are expensive, they should check out the Perfect Ending Present Cake in the Williams-Sonoma catalog for some perspective. It's a square cake - 5" x 5" x 6" - that feeds 8-10 people and the price is $89.95 (not including shipping)! Sorry, but $8.95 - $11.25 a slice for a cake that's cranked out in bulk and ships frozen is a little crazy.

I'll pay your price for a custom made cake any day! icon_biggrin.gif

Nchanted1 Posted 15 Dec 2009 , 5:31pm
post #32 of 68

I agree with everything that's been said, but I want to add something. You need to add VALUE in ways that the customer will appreciate. My cakes start at $5 per slice, which is on the high side around here. But I lead them to it, and educate them.

I am a scratch baker, I even make my own vanilla. My rum filling is made with Bacardi's, my lemon cakes are flavored with real lemons so there's no chamical aftertaste, I use real vanilla beans in my vanilla cakes, so you can see the little seeds like in premium ice creams...etc. etc. I go through the multiple icing steps, the custom design process, my education and experience, magazine placements, and competition wins.

By the time I am done, they think $5 per slice is very reasonable! I work less and earn more. HTH

Kiddiekakes Posted 15 Dec 2009 , 5:36pm
post #33 of 68

Oh my..I had to take a second look at your name..I thought it said Maturbater... icon_redface.gificon_redface.gificon_redface.gif

I need a coffee!! thumbs_up.gif

newmansmom2004 Posted 15 Dec 2009 , 5:48pm
post #34 of 68
Quote:
Originally Posted by Kiddiekakes

Oh my..I had to take a second look at your name..I thought it said Maturbater... icon_redface.gificon_redface.gificon_redface.gif




LOL - I did the same thing!! icon_lol.gificon_lol.gificon_lol.gif

cocobean Posted 15 Dec 2009 , 6:31pm
post #35 of 68

jopalis, I agree it can depend on the size of your slices. I recently upped my prices but I feel o.k. about it because I offer a REALLY LARGE slice of cake per serving compared to some that might use the Wilton wedding chart or party chart.

For example:
Wilton Wedding Chart 10" cake serves 38 (1x2x4 slices)
Witon Party Chart 10" cake serves 28 (11/2x2x4 slices)

The chart I have switched to (I don't remember where I got it or the name of the chart) has...

a 10" cake that serves 21 pieces or (2x2x4 slices) [b]I use this one for wedding cake pricing. icon_biggrin.gif
OR a 10" cake that can be cut to serve 13 (2x3x4 slices) I'm thinking about using this one for party cake pricing. icon_biggrin.gif

I really like big pieces of cake icon_biggrin.gif (especially if I ever want to compare them to resturant slices of cake).

Thats just me. I think I like it a lot better that way.

When I drop off a cake that costs 450.00 I wouldn't mind them saying well thats a lot of money but this is beautiful, really LARGE cake! icon_biggrin.gif

Nellical Posted 15 Dec 2009 , 6:38pm
post #36 of 68

Yeah, I'm with cocobean on the size of servings. I like cake and when I eat cake, I want a good sized slice. I end up making more than the Wilton chart too.

Mensch Posted 15 Dec 2009 , 6:58pm
post #37 of 68

My prices are my prices.

I have the most expensive cakes in town, and I like it that way. I've had people scream at me and cuss me out when I quote a price at them, and I've also had people not react at all, except for pulling out their wallet.

Me, I'd rather make one cake for $200 than 10 cakes for $20 each.

tonia3604 Posted 15 Dec 2009 , 7:41pm
post #38 of 68

A few months ago, before I really started charging for cakes, I made an Indiana Jones cake for my/husband's nephew. Everyone loved the cake and there was a conversation about what I should charge. After someone else said they would expect to pay $50 for the cake, my sister'n'law (who's son it was for) said she wouldn't pay more than $40 for the cake I had $35.00 in! (I made the cake for free btw!)

But, I guess making cakes for family is somewhat of a different subject!!!!

zulema Posted 15 Dec 2009 , 7:50pm
post #39 of 68

A mi me pasa algo parecido con los precios...cuando estoy haciendo el presupuesto de un pastel, creo que es mucho (probablemente yo no gastaria tanto en un pastel, afortunadamente yo no soy mi mercado), pero una vez que estoy haciendo el fondant, horneando, enbetunando y decorando...vuelvo a pensar en el precio y entonces creo que es poco, jeje...

Como alguien de arriba menciono, lo que hacemos es un arte, y hay que cobrarlo como tal.
----------------------------------------------------------------------------------------------------------------------------------------------------

Something similar happens to me every time I am doing a cake budget, i think it´s too much (I probably wouldn´t expend so much in a cake, but fortunatly i´m not my target market), but once i start doing the fodant, baking, and decorating...I think over and the price looks very low, jaja.

Like someone here told, what we do is art, and it has to be charge like that

__Jamie__ Posted 15 Dec 2009 , 7:51pm
post #40 of 68

I'll make a cake for family super cheap if I'm getting a cut on a service they offer in their respective professional occupation. icon_smile.gif

CakeForte Posted 15 Dec 2009 , 8:21pm
post #41 of 68

You are not marketing to the right clients, that's why you're getting this sticker shock. One you decide who your market is, you have to focus your business efforts in that area.

Walmart shoppers would never go to Nordstrom's.

tinygoose Posted 15 Dec 2009 , 8:21pm
post #42 of 68

Colette Peters quote. "People balk at the lowest prices." And it is soo true. You could charge $1 a slice and some people would still remind you that flour, sugar, eggs doesn't cost that much.

Stick to your guns. It's no fun working for next to nothing.

Deb_ Posted 15 Dec 2009 , 8:24pm
post #43 of 68

Anyone else think the OP's screen name is hilarious? icon_lol.gif

Mensch Posted 15 Dec 2009 , 8:27pm
post #44 of 68

Me.


I've been wondering when the churchy types would start getting their panties all up in a twist.

tripleD Posted 15 Dec 2009 , 8:42pm
post #45 of 68

I can say it must be the tight wades of Ohio.
I Also am in ohio. I had these people call me wanting a sculpted cake for about 25 people and say Thats only like $20 bucks right? When I tell them The price they yell at me.
I tell them they pay 4.95 for a desert at a restaurant. look at what it would cost to serve there party from from a menu. then They relize im not as bad as they think.

indydebi Posted 15 Dec 2009 , 8:43pm
post #46 of 68
Quote:
Originally Posted by tinygoose

Colette Peters quote. "People balk at the lowest prices." And it is soo true. You could charge $1 a slice and some people would still remind you that flour, sugar, eggs doesn't cost that much.

Stick to your guns. It's no fun working for next to nothing.



A-freakin'-men to this!!!

I've told folks, "Not everyone can afford me, and that's ok!"

One lady wanted a unique cake, involving fondant work with a special theme. When I asked her how much she was looking to spend, she hesitated and I said, "Let me just tell you that you won't find any Walmart prices with me ..... but there's no way you'd find my style of cakes at Walmart, either!" I actually have something similar posted right on my website (The Dessert Cakes page).

And to those who tell me "it's just a cake!", I reply (and yes, I HAVE said this to people), "Ohhhhhh! You'wanted "just a cake"! Walmart .... Aisle 8 .... knock yourself out!"

because keep reminding yourself .... if it's "just a cake", then they are implying just anyone can do it ... so they should have no problem doing it themselves! icon_rolleyes.gif

Mike1394 Posted 15 Dec 2009 , 8:58pm
post #47 of 68
Quote:
Originally Posted by Kiddiekakes

Oh my..I had to take a second look at your name..I thought it said Maturbater... icon_redface.gificon_redface.gificon_redface.gif

I need a coffee!! thumbs_up.gif




That just means they fly solo when doing a cake icon_biggrin.gif

Mike

masturbaker Posted 15 Dec 2009 , 9:27pm
post #48 of 68

Hsha indydebi you're a trip!

LOL.. you all are so nice and funny. And yes, I know my username is a bit.. risque! but I thought we could use some naughtiness... And some of you have referred to me as "she" and "her", but I'm a man.. ha.. i know we're a rare breed around here so I forgive.

And I know I need to upload pics, but just haven't out of sheer laziness.

Well, I have been sticking to my prices but it's hard. Someone here said that I'm not marketing to the right people.. and I totally agree.. where can I find "the ladies who lunch"?

CakeForte Posted 15 Dec 2009 , 9:48pm
post #49 of 68

That was me referring to the target market. That's where your homework comes in. And I was in the same boat myself....so I feel you.

First...I started looking where other "high end" companies were advertising, then I worked backwards.

I also started to gear my marketing to vendors instead of brides. (this part is IN progress....as my lightbulb came on only a few months ago LOL) I joined several wedding vendor associations, as these are the people that are meeting the brides/ large party clients first. Wouldn't you know.....I'm the only cake person in two groups, and one of two in the other. So 2010 and beyond looks promising!

Joyfull4444 Posted 15 Dec 2009 , 9:57pm
post #50 of 68
Quote:
Originally Posted by dkelly

Anyone else think the OP's screen name is hilarious? icon_lol.gif




I guess I must be from the old school. I don't see any humour in the OP's screen name at all.

Joyfull4444 Posted 15 Dec 2009 , 9:57pm
post #51 of 68
Quote:
Originally Posted by dkelly

Anyone else think the OP's screen name is hilarious? icon_lol.gif




I guess I must be from the old school. I don't see any humour in the OP's screen name at all.

karateka Posted 15 Dec 2009 , 10:22pm
post #52 of 68

I'm in Ohio too. I get the same thing. I actually had a lady tell me that my prices I was quoting was the same as the other bakers in town, and since I was a home baker, they should be less! The nerve. I told her I coudln't charge any less and make money and she hung up on me. NEXT!

I do know some who charge less around here, one even in my little town (and I've lost some weddings to her) but I won't back down. I don't want to be so busy that I end up hating this job.

And yes....I think the OP's name is pretty clever.

-K8memphis Posted 15 Dec 2009 , 11:04pm
post #53 of 68
Quote:
Originally Posted by masturbaker

And I know I need to upload pics, but just haven't out of sheer laziness.




I mean I haven't either for the same reason but at least I have a web page etc. So get with the program--with your screen name you need the credibility yes?

So an idea for you is to target florists and venues and other wedding vendors. Because it's not just the ladies who lunch it's the ladies who celebrate in style. But I mean I not only don't know if you do weddings I don't know how you do them. I might be just wasting my type.

browniebatterer Posted 15 Dec 2009 , 11:26pm
post #54 of 68

Or take away credibility after we see what those photos look like. icon_lol.gif

sugarlover Posted 15 Dec 2009 , 11:29pm
post #55 of 68

I Live in Michigan and get the same thing. I had young lady ask for a baby shower customed designed of course. I gave her a price and said that's expensive! then she turns around and asks for a cake that looks like the bottle of 1800 tequila. I nicely told her if you thought the baby shower cake was expensive then you're definitely won't want the tequila bottle cake for me. My attitude is go to Walmart, Sam's Club and get your cake. HA!

Jenn2179 Posted 16 Dec 2009 , 12:04am
post #56 of 68
Quote:
Originally Posted by ziggytarheel

I did, however, want to mention something about the restaurant cake analogy. As a consumer, that particular explanation wouldn't work for me. When I go out to eat, part of the way that I always justify the expense is knowing that the price of my food is based on much more than the actual food itself. On top of the labor to produce the food, there are other salaries to pay (low as they may be), there is the lovely table and table ware, the dishwasher has wash not only the food prep materials but also my eating utensils, there are utilities to pay not only in the kitchen but the dining room, the dining room decor has a price, the extra large parking lot has a price, etc. This is why I pay more for their dessert in the restaurant. It does cost more to provide a pleasant place to eat my food than to take it home to eat it.

I say all that realizing that I would pay the same for take out (sans tip). Maybe no one else would think that way, but I do. I always think about that in wedding cake pricing threads, since the bride is probably paying separately for the place for people to eat, for the dishes they eat the cake on, for someone to wash those dishes, etc.




There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.

sugarlover Posted 16 Dec 2009 , 12:23am
post #57 of 68

I was told by a business associate if your cakes are worth $200 then you charge $200 because when that person income increases they will go to the next person and pay more for that cake because you will be known as the CHEAP cake lady. In others words charge what you are worth either they take it or leave it! HA!

CeeTee Posted 16 Dec 2009 , 12:29am
post #58 of 68
Quote:
Originally Posted by Jenn2179


There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.




AMEN Jenn! The restaurant analogy does work with home or independent bakers because they too have employees to pay, equipment and supplies to buy, utilities to pay...just because they are not part of a restuartuant chain doesn't mean that they don't have expenses too. Usually their expenses are higher than a restaurants because prices do down when volume goes up. Home bakers who rely on retail or club warehouses for their ingredients often have the highest base cost for cake supplies.

If a baker is a single-person unit (either home baker or with a small store front) Their job is not just the baking and decorating of the cake only. They are also their own delivery driver using their own vehicle (gas/car maitenence expenses), their own dishwasher, promoter, advertising department...it's only ONE person doing the job of many people!

ziggytarheel Posted 16 Dec 2009 , 12:49am
post #59 of 68
Quote:
Originally Posted by CeeTee

Quote:
Originally Posted by Jenn2179


There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.



AMEN Jenn! The restaurant analogy does work with home or independent bakers because they too have employees to pay, equipment and supplies to buy, utilities to pay...just because they are not part of a restuartuant chain doesn't mean that they don't have expenses too. Usually their expenses are higher than a restaurants because prices do down when volume goes up. Home bakers who rely on retail or club warehouses for their ingredients often have the highest base cost for cake supplies.

If a baker is a single-person unit (either home baker or with a small store front) Their job is not just the baking and decorating of the cake only. They are also their own delivery driver using their own vehicle (gas/car maitenence expenses), their own dishwasher, promoter, advertising department...it's only ONE person doing the job of many people!




But, my point had nothing to do with cakes coming from a huge storefront bakery or a home bakery. It has to do with comparing it to a restaurant with a dining room. In those restaurants, you are also paying for the table you sit at, your waitstaff, busboys, hostesses, place setting, decor, large parking lot, etc. When you buy a cake, you are then providing those things yourself. A bride is paying for a venue, table and linen rentals, etc. That's my point. There are expenses in the kitchen of the restaurant just like their are expenses in the bakery "kitchen". I was talking about the rest of the cost of that restaurant cake, expenses the customer covers one way or another. That's all. Maybe I'm the only one who thinks that way, but I think the points are worth remembering.

indydebi Posted 16 Dec 2009 , 1:21am
post #60 of 68

Restaurants have lower per-person overhead costs. Their desserts are 99% of the time frozen from GFS and Sysco .... that is not a guess. I go to the food shows, I see what's there, I see the exact same things in restaurants. Restaurants are not meeting their overhead on a slice of frozen cake .... they are meeting their overhead on the big meal they just served to the 4 people at the table.

Restaurants may provide the table and the waiter to bring it to you, but I'm providing the delivery vehicle and the delivery person to bring it to you. And I'll bet your a$$ that my delivery person makes WAY more money than a wait staff person in a restaurant (payroll ... not tips, because tips do not come out of the restaurtant's overhead). I'm also using that delivery vehicle to make 1 to 3 wedding cake deliveries on a Saturday .... the restaurant gets to use that table 20 or more times a day. My van costs way more than a table. The restaurant recoups it's cost of the table in a VERY short time. And the restaurant doesn't have to pay commercial auto insurance on that table.

Yes .... it is a VERY good comparison.

(I've also had restaurant people tell me "I'm not working for you .... working for a caterer is WAY harder work than working in a restaurant!". icon_biggrin.gif )

Quote by @%username% on %date%

%body%