Is A Sale Appropriate?

Business By cakiemommie Updated 19 Mar 2010 , 3:16pm by sweetcakes

cakiemommie Posted 14 Mar 2010 , 8:23am
post #1 of 21

hello everyone!

In an effort to get my cake out there, and hopefully generating some more business, I'm considering offering a sale until the end of the month. All cakes booked by March 31st get 25% off the total cost of the cake.... basically a 2 week special. Is this appropriate? or is it too much of a discount?

thoughts?

20 replies
brincess_b Posted 14 Mar 2010 , 8:54am
post #2 of 21

that is a lot of discount... but as long as you still cover all your costs and at least most of your time, then i guess it doesnt matter quite so much. but the only discounts i have seen have been 10-15%.
xx

Gefion Posted 14 Mar 2010 , 11:37am
post #3 of 21

You need to do a little math and see how much a 25% discount would affect you in terms of covering expenses and still having enough money left to make it worth your while. Then you can determine if it's too much.

Personally I would do a 10% discount.

indydebi Posted 14 Mar 2010 , 3:19pm
post #4 of 21

A very expensive marketing guru (that a friend of mine paid for ... I'm too cheap!) says "Never discount .... always add value."

On a $400 cake, a 25% discount equates to $100 off. It will cost you WAY less than that to offer, for example, 2 dz free choc covered strawberries for the bride and groom (or the head table, if they want to share). Value? $60. Your cost? About ten bucks.

Offer a small, simple groom's cake. 8" round max. size. SImple design (sports theme, for example). Value? $75 to $125. Your cost? About 15 bucks.

Offer two "Parents Cakes": two 6" cakes decorated similar to the weddign cake or just BC iced w/ simple decors. These are gifts to the parents .. a souvenier of sorts of the wedding. With brides trying to buy "jsut enough" cake for the wedding, having an extra cake that mom can take home just for her is something special. Value? $75. Your cost? Under 20 bucks.

See where I'm going here? icon_wink.gif

Chippi Posted 14 Mar 2010 , 3:36pm
post #5 of 21

I believe it is Pink Cake Box that offers a small 1 tiered matching cake for the couples first year anniversary w/ a purchase of a wedding cake. Love Indydebi she is so full of super advice!

indydebi Posted 14 Mar 2010 , 4:28pm
post #6 of 21

I also wanted to add, but forgot it in the last post, that when you give a discount, you are handing them cash back out of your pocket. WHen you give them a gift, it only costs you the wholesale cost, not the retail cost.

The above example of the 25% discount on a $400 cake means you are handing them a $100 bill.

When you give a "free gift", you are handing them something that has a retail value of, let's say, $100 but your out of pocket is usually WAY under that.

Instead of handing them a $100 bill, you're "handing" them just a $20 bill but you've made them very very happy with their $100 gift.

THat's why its much cheaper to give them a $100 value-added gift than it is to give them a cash discount gift.

cakiemommie Posted 14 Mar 2010 , 7:39pm
post #7 of 21

hmmmm... you have a point indydebi. great advice too!

johnson6ofus Posted 14 Mar 2010 , 9:16pm
post #8 of 21

I still want to be indydebi when I grow up... icon_biggrin.gif

sada Posted 15 Mar 2010 , 11:54am
post #9 of 21

Me too, johnson6ofus !!!
My sister in law runs a cloth shop and she said to me, when we were discussing about regular customers and friends discount: "I never give them a discount, I always give them something as gift, if you give them discount they still have to pay and it does not make the same effect in their had as when they get something for free". Plus it is cheaper for you as indydebi explained above.

EatSomeCake Posted 15 Mar 2010 , 2:08pm
post #10 of 21

Great advice Indydebi! As always!

KHalstead Posted 15 Mar 2010 , 5:13pm
post #11 of 21

How about instead of 25% off, you give them like 25 free servings? Something like that! That way they'll feel like they're getting a real bargain!!

tarheelgirl Posted 15 Mar 2010 , 5:28pm
post #12 of 21

Great advice! icon_biggrin.gif I love the gift idea!!

ttehan4 Posted 15 Mar 2010 , 5:41pm
post #13 of 21

I offer something free or a bonus like Indydebi said.

Question for you Indydebi: reading where you mentioned the strawberries at 60.00. I am pricing MOB for bride and groom strawberries for the wedding. She has 300 guest, how many would you suggest she have? Do you charge 30.00 per dozen? I was planning on quoting 24.00 per dozen, but If I can get 30 even better..lol!

indydebi Posted 15 Mar 2010 , 5:50pm
post #14 of 21

I charged $2.50 each ..... $36/doz. Depending on the time of year, to get 300 good ones, you'll need to buy probably 500 berries (figure 4 to 5 flats minimum).

If she is going to set one at each place setting, then one each. If they are going to be part of the dessert table, where guests can help themselves, then I'd plan on at LEAST 2 per person. These are VERY popular and they go FAST! Had one bride who planned a wedding for 100; ordered 100 berries; and there were none left by the time she arrived at the reception.

sweetlayers Posted 16 Mar 2010 , 2:46am
post #15 of 21

Save!

aquamom Posted 16 Mar 2010 , 2:55am
post #16 of 21

IndyDebi--- I learn so much from reading your posts. Thank you so much for all you do!!!

cblupe Posted 16 Mar 2010 , 3:16am
post #17 of 21

Love the ideas in this thread! Great info.

pj22 Posted 18 Mar 2010 , 3:52am
post #18 of 21

Wow indydebi.. I'm gonna remember this advice forever!! icon_biggrin.gif

adven68 Posted 18 Mar 2010 , 11:43am
post #19 of 21
Quote:
Originally Posted by indydebi

A very expensive marketing guru (that a friend of mine paid for ... I'm too cheap!) says "Never discount .... always add value."

On a $400 cake, a 25% discount equates to $100 off. It will cost you WAY less than that to offer, for example, 2 dz free choc covered strawberries for the bride and groom (or the head table, if they want to share). Value? $60. Your cost? About ten bucks.

Offer a small, simple groom's cake. 8" round max. size. SImple design (sports theme, for example). Value? $75 to $125. Your cost? About 15 bucks.

Offer two "Parents Cakes": two 6" cakes decorated similar to the weddign cake or just BC iced w/ simple decors. These are gifts to the parents .. a souvenier of sorts of the wedding. With brides trying to buy "jsut enough" cake for the wedding, having an extra cake that mom can take home just for her is something special. Value? $75. Your cost? Under 20 bucks.

See where I'm going here? icon_wink.gif





great adviceas alwys...thanks!

Loucinda Posted 18 Mar 2010 , 12:18pm
post #20 of 21

Thank you indy!! That is something that a person really doesn't think about - until now!

sweetcakes Posted 19 Mar 2010 , 3:16pm
post #21 of 21

I agree Indy always has the best answer. I purposely look for her replies cause i know its going to be right and good. I wish you would right a book about running a business and all your little sayings, it would be invaluable. please, please please consider it!!!!! icon_smile.gif

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