Having A Hard Time With Prices.

Decorating By CakeMama625 Updated 30 Apr 2010 , 7:55am by karateka

CakeMama625 Posted 30 Apr 2010 , 6:15am
post #1 of 5

I am just beginning to sell cakes and I came up with my pricing. I am (as far as I know) the cheapest in town because I am just starting out and don't have THAT much experience. By the time I add up how much everything will cost the price just seems outrageous to me and I end up cutting the price almost in half. A lady wants a 10" round fondant cake with a fondant ladybug on the top......pretty simple. According to my prices, thats $142! So I told her it would be $65. I know I need to just suck it up and stick with my prices. Does anyone/has anyone else felt this way just starting out? Does it get easier?! lol

4 replies
Cakechick123 Posted 30 Apr 2010 , 6:53am
post #2 of 5

you are shooting yourself in the foot with the attitude of "im not experienced, so I must be the cheapest" . Its very difficult to lose the CHEAP CAKE LADY badge once its been pinned to your name!!!

You have to sit down and consider if you want to make money with this ie run it as a business or if you are just doing it for fun. If its for fun then by all means, do the cake for $65 and be happy with the $5 you made for all the hours work. BUT if you want to make money you are going to have to put your big girl panties on and act like a business person. You set your prices and those that doesnt like it can go somewhere else. It will take a while but if you have a good product they WILL come. and pay your prices.

With the above cake you are charging $1.70 per serving! Im not in your country, but from what I've seen on here, that is very low. The $142 price will give you $3.75 per serving, much more realistic IMO

KitchenKat Posted 30 Apr 2010 , 7:01am
post #3 of 5

If your pricing came out to $142 the why in the world would you lower it to less that half the price? You just paid somebody to be your customer!

Stick to your guns girl! You're already way ahead of beginning decorators because you can at least figure out how much you should charge.

When I started out I squirmed and fidgeted about price too. My cakes were at least 30% more than the average cakes on the market. But the customers who truly believed in me and in my cakes never batted an eyelash at my prices. And those whom I really, really liked (e.g. a good friend or one of my children's teacher's) I offered a 10% discount.

Believe me, after working 12+ hours on a cake and realizing how little money you actually got for it, smart pricing and profit maximization will get REALLY easy.

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CakeMama625 Posted 30 Apr 2010 , 7:43am
post #4 of 5

Thank you for the feedback. I think you both are right. My plan was to have my first few cakes be fairly inexpensive to get some referals, and so far I have gotten a few because of it. I think that alot of businesses start of that way, then once they get a customer base, they raise their prices. So, I figure with my next cake I will charge my full price.

karateka Posted 30 Apr 2010 , 7:55am
post #5 of 5
Quote:
Originally Posted by CakeMama625

Thank you for the feedback. I think you both are right. My plan was to have my first few cakes be fairly inexpensive to get some referals, and so far I have gotten a few because of it. I think that alot of businesses start of that way, then once they get a customer base, they raise their prices. So, I figure with my next cake I will charge my full price.




Problem is, they are referring them to you for a cheap cake! Trust me...stick to your pricing. If you undersell they will expect it all the time.

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