Cake For A $1?

Business By CakesbyMichele Updated 17 Jan 2010 , 1:32pm by mireillea

CakesbyMichele Posted 14 Jan 2010 , 2:12am
post #1 of 7

I'm just writing to vent. It seems no one wants to pay for cakes now! Is anyone else experiencing this? People want elaborate 3D cakes and don't want to spend more than $30!! Are you serious? It's happening with wedding cakes too! I really don't want to lower my prices but I want to have some business. I thought once I went legal and got a website, business would improve but it's about the same as before. I'm just very disappointed and frustrated. I really want to be able to make this a full time thing but it doesn't seem to be happening. Oh well, maybe the economy will improve soon! Thanks for listening.

6 replies
Texas_Rose Posted 14 Jan 2010 , 2:16am
post #2 of 7

It sounds like you might be advertising in the wrong place. If you're advertising on Craigslist (just as an example) you're going to find people who want things cheap or practically free all the time.

Also, if you post prices on your website it might help weed out the time wasters.

spicymustard2 Posted 14 Jan 2010 , 7:11am
post #3 of 7

Yeah, Texas Rose is right. I don't have a cake business yet, but during my business and marketing classes in college I learned you have to correctly position yourself in the marketplace. Dress the part. Present your product like it's the most important in the world. Build value. Stress how it will enhance the buyer's life/special event. I picked up a lot of great sales skills over the years while selling cars, appliances, etc. A little training in this area can go a long way. I'm sure you could find someone selling sales technique CDs or books online.

leah_s Posted 14 Jan 2010 , 3:14pm
post #4 of 7

For me, 2010 is looking better. Much less price shock. More people watching the cake shows on TV and actually already knowing that Duff has a $1K minimum. Makes my prices look like a bargain!

capruitt1 Posted 16 Jan 2010 , 7:04pm
post #5 of 7

I'm getting people who also want the 3D cakes but don't want to pay. These seem to be people who are use to purchasing grocery store cakes for $20 - $30. I just don't think they understand the work involved. I explain that these cakes take much longer to make plus the cost of materials, but that I can make a one dimensional cake in their price range. I've found if I stand my ground on price, people almost always agree to pay more for the 3D cake.
I'm wondering how others are determining price. Hourly price, plus materials? Can anyone give feedback on this? Thanks.

_Jamie_ Posted 16 Jan 2010 , 7:27pm
post #6 of 7
Originally Posted by leah_s

For me, 2010 is looking better. Much less price shock. More people watching the cake shows on TV and actually already knowing that Duff has a $1K minimum. Makes my prices look like a bargain!

Me too. Just over the last 2 weeks, I've been seeing much better "traffic" than this time last year. Plus, the peeps with disposable income are feeling spendy again. Yay!

mireillea Posted 17 Jan 2010 , 1:32pm
post #7 of 7

I have raised my prices considerably in the past two years. And it gave me quite some discussion with my husband: "Should we really do this, can people afford to spend that much on a cake?, Why should they buy a cake here if they can buy it somewhere else for half the price?".
But I believe in what I do and in what I want. I want to make top notch cakes in which I can use all my creativity, the best materials and which I can give a dash of 'luxury'. I started in this business seven years ago, baked nice cakes and didn't ask that much. And it attracted just the same kind of audience: nice people (in general icon_wink.gif ) that didn't have that much to spend.

But my dream has been and still is, making cakes that give oohs and aahs, ridiculously great cakes, sometimes over the top, AND THEY COST! They cost time and materials, but also a creative thinking that doesn't stop when I leave the kitchen. And I truly do believe that my cakes are worth the price that I am asking. So, I raised my prices a year ago, from 2.75 euro per serving to 3.50 euro per serving, and I raised them again in August from 3.50 to 4.50 euro per serving. And now I use 4.50 euro as a starting price. Customers pay 1 to 2.50 euro per serving more if they want sugarart, special designs etc.
My hubby was almost you know doing what in his pants. He thought I had lost it. But you know what? It is January 17 right now, and from the start of this month, I already booked 8 weddings for this year. And that to me is proof that people want to pay for something special. Don't get me wrong, I am not saying that those with lower prices have lower standards. Maybe they bake the best cakes ever. But do they earn anything?
With my new prices I can take the time to make the cakes, take time to be truly creative, use the best materials and in the end make a good living out of it.
Raising my prices considerably has learned me that you shouldn't be afraid to do that. If you are aiming at an audience with a higher income, you should ask higher prices.


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