Its becoming harder to design for clients without knowing their budget. With brides its not problem asking. Its the everyday clients.

I naturally design what is usually the more expensive, elaborate cake. Like if you gave me a Vegas theme cake for 50, I would design the really cool elaborate cake. I know I can't always do this, but it would be nice to know the clients budget so that I can adjust the design.

I don't want to make the client feel like they can't afford me either. I don't want to offend anyone. Also if I don't take their order due to other reasons besides budget I don't want them to think that is it, or detour them from future orders. I want to make it a required field on my form, (as I really could use that info), but some may not feel comfortable with giving that info.

Whats your opinion?

I ask people for their budgets all the time, and I'm also not afraid to tell them that I can't do it for their budget price if it's way below what I charge. It saves a lot of time to get it all out in the open and not play little guessing games with them!

I totally agree with Costumeczar.....I ask also because then you don't spend needless time sending pictures etc of cakes they can't afford.When I find out what they intend to spend then I show pictures of cakes I can do for that price and if they can't afford me...so be it..I haven't wasted all that time and the customer understands that you aren't going to provide a cake for $300.00 for their budget of $30.00

Definitely know what they are going to spend for a cake. Then you can show them
cakes in their budget.

I ALWAYS ask the customer for their budget!! It allows me to do a cake within their price range or let them know up front, that you can't do any cake for what they are wanting to pay!!

It is so much easier and saves a lot of time!!

Experienced baker, but just starting my cake business. A friend of a friend contacted me and wants a Lacrosse themed cake for her boys teams end of season potluck. Cake for 50 people.

I asked her what her budget would be, she said $50. The delivery would be almost 50 miles one way for me. I don't see how I can do this and not lose money, much less make any.

I have been doing discounts for friends that help get the word out- so I don't mind a big discount, but I can't have it cost money- I'm trying to come up with money to start a business. I have to call her and break it to her and I'm not looking forward to it.

EGADS!!!!! You can't even feed 50 for $50 with Twinkies, never mind adding a hundred
mile round trip on top!!! QUICK.......call her!!!

I've had this problem also. But I definitely ask what the budget is up front, I too like to go all out on the design, and I've made the mistake before of getting the client all excited about the design only to tell them "ok that one is going to be $350" and they come back and say "I only wanted to spend about $60 total"

I've learned that you have to put your foot down. And I too have been giving "friend and family" discounts as a word- of - mouth advertising and the word is getting around, so not I'm seeing people offering me a budget of the bare minimum and I've been having to turn people away because I will lose money

I can't imagine someone being in sales and NOT asking,"What kind of budget are we looking at?" Even in my job(s) in corporate america, I'd ask my customers "What's your target price?"

I think it's because we are taught that you "never ask people about their money!" As little kids, it's rude to ask "how much did you pay for that?" or "How much money do you make?" Get over it. This isn't a social setting. It's business.

And it's ok to say NO!!! Practice it. Over and over. "NO!!!! I can't make a cake to meet that budget." "NOOOOO!!!!! I can't deliver 50 miles for free." Just. Say. No.

I use car analogies a lot, but how does a salesman know whether to show a potential buyer the brand new $70,000 Escolades .... or the $2000 used Ford Escorts?

You HAVE to ASK!!!!!

I think it's a necessary evil, really. In some cases, it may be the first time the person actually thinks about the possible costs. It has to save you both time and perhaps disappointment, in the long run.

I'm a pricetag shopper. If I go into a store and there are no tags, I leave. I just don't want to be disappointed when the salesperson smiles and say, "Oh, that's JUST $500." when I thought it would be around $50.

I try to let people know what their budget will get them and to then let them know what an extra 10%, 25%, 50% will allow. If they feel that their budget is flexible AND they're interested in certain premium features, they're happy to make extra choices. If a budget is fixed, then they know what they CAN'T have for that amount.

Rae

I always ask too. I don't want to show them the Cadillac cake if they only have a Honda budget, because no matter how nice the Honda is, it's bound to be a let down once they've seen the Cadillac design

I don't make cakes for profit yet, just for friends and things like that right now. (I'm just starting out, ) So I can't give you advice from a professionals point of view but from a customer's point of view. I'd appreciate it if the baker asked me my budget, especially if my budget is something they wouldn't be able to work with.

Its better to know right off the bat. If my budget is less than your minimum it would be important to know that so I can continue to search. I also wouldn't want to go through the whole process just to find out that you've produced a cake that I can't afford and its too late. I would never be offended by someone asking me my budget.

Just today I had someone email me about setting up an appointment for a wedding cake tasting. They have a large guest list and she said "we're on a tight budget," so before I set anything up I emailed her back to see what budget she wants to work with.

Sometimes when people have 250+ guests they want to cut back on everything BUT the guest list, so they start shopping for price point alone. I'm not going to schedule a tasting if she can't afford my pricing, it's a waste of her time, my time, and it costs me money to provide the samples.

If she comes back with a budget that's under what I'm willing to work for, I'll have no problem, telling her that I can't do the cake for the budget that she wants to work with.

And I'm booked solid through October, and I turn down about 4-5 people on average every day because I'm already booked, so if you're worried about losing business because you have firm pricing, don't be!

Totally agree!! Thanks everyone!! This is soooo helpful. I too am pretty new at this and I feel like I am constantly in the hole with pricing!! I end up going down on prices just so I don't see the disapointment in the customer's face or so I don't have to hear how rediculous it is to have a cake priced so high, but as my demand is going up, and after reading this, I will def. be upfront with pricing and stand my ground!!

I should have learned my lesson but I didn't.... I had a consult for a bridal shower... we didn't discuss pricing until AFTER I spent hours working on a design... they loved the design and the free tastings also.... when I quoted the price... then they said they had seen someone else that was willing to do the cake for them for almost 50% less than what I charge... I sent them an email... congratulating them on the great deal they got and advising them that they should go with them for sure because there was no way that I was going to be able to math that price.

I find myself talking about $$$$ AFTER I do the sketch and the sketch IS time consuming and gets me all exited to work on that cake only to have it be a turn down due to budget...

I MUST keep in mind that I should ask about budget in the same sentence as when is the cake due lol

lemme ask u this... what if you ask them what their budget it and they come back with: "How much do your cakes start at?" what/how do you do/do you handle this???

Me: What budget are you trying to stay within?
Them: How much are your cakes?
Me: It depends on how many people it needs to serve and where the reception will be for the delivery charge. How many guests do you think will be there and where would I be delivering it to?
Them: Uh, I don't know.
Me: If you can give me a general idea I can give you a rough estimate, but unless I know that I can't tell you the price range without it just being a guess.
Them: Say about 100 people.
Me: For 100 guests you'd need X number of servings and it would be somewhere around $X.


Sometimes you have to drag it out of them because people are trained to think that if they set a price, the professional will sell right up to that limit. It could go like this:

Them: I don't know where the reception will be yet, or how many guests we'll have.
Me: It could be anywhere from $200 to $800 depending on what the specifics are. Do you want to get back to me when you have a better idea of what you're looking at, and I can try to give you a price range then?

I am new to this whole thing, so mine is not a professional opinion, but I absolutely agree with the person who is a "pricetag shopper". If the prices aren't posted, it makes me nervous because I feel that the price I hear will be based on what they THINK I can afford, and not on a specific standard. So, having written price guidelines and some photo examples will help a lot to reach a middle ground where everyone is happy.

I do, however, know a little bit about Sales & Marketing and know that you should strive to not discount your core product, but can add-on things to increase perceived value. I.e., do not discount your cakes, but you can offer free delivery or something like that to enhance the overall value.

Well put Sunnycakes!! I will NEVER sell myself short again!! Thank goodness!! I think this is what lead to my major cake decorating burnout a while back. I thought I would never enjoy making and decorating cakes again, but now that I'm back into it, I really think it had something to do with not charging enough.

Debi.... u r so so right... I think it's just that I am not thinking of this with the same frame of mind as I did when I worked for the corporate world.... and I need to understand that it's still a business and everything that happens as a result of that order/inquiry should be treated as time that needs 2b compensated.... thanks a lot.... I will make it a point to actually think like you said... how are the big timers doing it? I bet they won't do a sketch without knowing they got that order booked....

I would much rather be asked my budget up front than end up feeling foolish and awkward later on when the cake (or item) is WAY out of the budget range. Also, if one did not truly have an understanding of what a custom cake should/would cost, this would be a great time for a gentle education (done in a manner so as not to make them feel foolish).

You're right!! I guess I was too focused on telling her that the larger the servings, the larger the price.