Where Do I Even Start??

Business By Donnabugg Updated 29 Jun 2010 , 3:54am by Bunsen

Donnabugg Posted 29 Jun 2010 , 12:52am
post #1 of 8

Hi everyone. Looking for some input sorry if this is long... I became addicted to caking about a year and a half ago. I am now in the process of becoming licensed to be able to do so from home in my spare time. Up till now I've done them for friends but mainly practice cakes.
First and foremost I am really unsure about my pricing. I've shopped the local bakeries and the going price seems to be $3.50 for buttercream & $4.50-$5.00 for fondant. My question is my experience compared to theirs is minimal so how much lower should my prices be? For instance if someone called me tomorrow inquiring about a wedding cake...first of all I would panic..second I would drop over!! lol But we all have to take the plunge at some point right? So I am thinking $2.50 or $3 for BC and $4 for fondant.
Secondly, what would I say when they ask "you've done wedding cakes before right"?
Feel free to look at my pictures in order to come up with a price you feel it's worth...I don't bruise easily! lol (Unless you base it off the first two cakes I did in class which I'm sure you can pick out! lol)

Oh yea, another tricky part that confuses me is how much extra to charge for the extras..like fondant figures or that sort of thing?? Thanks for any and all input!! thumbs_up.gif

7 replies
BeanCountingBaker Posted 29 Jun 2010 , 1:06am
post #2 of 8

There's tons on here about pricing. I think IndyDebi has some posts. First and foremost cover your costs. A simple spreadsheet can help you be sure your ingredients are covered.

jillmakescakes Posted 29 Jun 2010 , 1:09am
post #3 of 8

Ah, welcome to all of the questions that we've all asked ourselves.

Unfortunately, this is one question that we can't really help you with. YOU have to decide what YOU think your work is worth and price accordingly.

I'm assuming that you've run your numbers to determine what kind of profit you will make at the various price points. If you haven't, you definitely need to do that before you can even think about how much to charge.

You also need to consider when you raise your prices, how will your customers react? How much work do you need to do to get to a point where you do raise your prices?

Lastly, as IndyDebi is fond of saying, you want to keep the company of those you want to be like (I don't remember the exact phrase, help me out Debi!). If you want to be considered in the same league as the $4-$5 per serving crowd, you need to KNOW that you do $4-$5 per serving work.

jillmakescakes Posted 29 Jun 2010 , 1:11am
post #4 of 8

Sorry- forgot to address the "You've done wedding cakes before, right?"

You can always tell your first bride "Even a surgeon has a first patient." If you find it necessary, offer to do one or two deeply discounted cakes to get live practice (probably can find a taker on CL), but definitely do a few dummies first and at least one real cake practice.

cheatize Posted 29 Jun 2010 , 1:32am
post #5 of 8

If you have done stacked cakes, but not wedding cakes, I would use that. "While I haven't had the opportunity to create a wedding cake just yet, I have done several stacked cakes [show the client those in your portfolio]. The only difference is that wedding cakes take longer to create due to the size and complexity."

Donnabugg Posted 29 Jun 2010 , 1:34am
post #6 of 8

I've spent hours and hours reading posts about everything from A-Z and plan to continue because frankly...I can't get enough! lol I'm sure every baker out there had these same questions and maybe even doubts in the beginning....
Oh...great idea about the CL thing!

indydebi Posted 29 Jun 2010 , 3:33am
post #7 of 8
Quote:
Originally Posted by cheatize

If you have done stacked cakes, but not wedding cakes, I would use that. "While I haven't had the opportunity to create a wedding cake just yet, I have done several stacked cakes [show the client those in your portfolio]. The only difference is that wedding cakes take longer to create due to the size and complexity."


I would suggest to keep it even more positive than that. Never use a negative. Such as "Yes, here are photos of my wedding-style cakes that I've done."

One line I always taught my new hires in my customer svc unit was how to use the word "yes" when telling a customer "no". The best line ever is to practice saying, "Yes! We have no bananas! We have no bananas today! We can ship you bananas tomorrow!" Positive all the way. thumbs_up.gif

To the OP, I looked at your cakes and you have a number of stacked cakes that either are or can be viewed as a wedding cakes, so I don't think you actually have any problem in that regard. thumbs_up.gif

Bunsen Posted 29 Jun 2010 , 3:54am
post #8 of 8
Quote:
Originally Posted by Donnabugg

My question is my experience compared to theirs is minimal so how much lower should my prices be?




You don't necessarily charge less, but you might pay yourself less. If your product is of the same standard as a competitor, charge the same price. However it might take you 5 hours to make compared to their 3 so you would be paying yourself a lower hourly rate. As you get quicker with experience you will be able to take on more cakes and your profits will rise without having to up your prices.

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