Underquoted A Client, Now What?

Business By BethLS Updated 19 Nov 2010 , 4:13am by classiccake

BethLS Posted 13 Nov 2010 , 1:18pm
post #1 of 17

Hi guys,

A long while back I recieved an email from a potential client on a price quote. I quote her not really thinking. Now that she's coming for a tasting soon, I went back through to her emails and I'm shocked at what I gave her.

Would you just best advise if she wants to book, that I go ahead and just suck it up and take the loss, or tell her due to XYZ I had to impliment a slight price increase?

16 replies
leah_s Posted 13 Nov 2010 , 1:36pm
post #2 of 17

We've all done it at one time or another. Suck it up and count it as part of your tuition in the school of "I won't do that again."

PS on my written quotes, I put an expiraton date on them.

aligotmatt Posted 13 Nov 2010 , 1:50pm
post #3 of 17

I would put an expiration date on it even in an email. But, you have her emails, depending on how long ago she emailed you, you could possibly use that. I have brides I quoted last year for next year, just a general range, but if they emailed me to set up a consultation and tried to hold me to a 10 month old email quote, I wouldn't just suck it up and take it... If the email was 3 weeks ago, then yeah, you should just eat it.

cakesbycathy Posted 13 Nov 2010 , 3:42pm
post #4 of 17

If it was more than 3 months ago then I would email her before the tasting and let her know that you wanted her to be aware that the price you quoted her is no longer valid and then give her a new quote. Then she will have the option of either still coming in or if it's out of her budget then you don't waste your time.

kansaslaura Posted 13 Nov 2010 , 4:32pm
post #5 of 17

Beth....please define "a long time back."

BethLS Posted 13 Nov 2010 , 4:43pm
post #6 of 17

Laura,

It was indeed about a year ago icon_smile.gif

Thankyou for the advice everyone!

artscallion Posted 13 Nov 2010 , 5:09pm
post #7 of 17

Yes, anything quoted that long ago without booking is nothing more than an old quote. If she had booked based on the quote back then, that's one thing. But without booking, a quote is not anything you can be held to. I would just let her know that your prices have changed since last year and give her a new quote. At worst, if she insists on the old price, you can tell her you're already booked for that date. Since she never held it with a deposit or contract, she has nothing to do but move on.

cutthecake Posted 13 Nov 2010 , 5:25pm
post #8 of 17

Just out of curiosity:
To those of you in business (I do not sell cakes), how often do you raise your rates? It seems like the costs of ingredients and supplies and energy go up weekly, or monthly/quarterly/semi-annually/whatever. How do you stay on top of this and not lose money?

kansaslaura Posted 13 Nov 2010 , 5:28pm
post #9 of 17
Quote:
Originally Posted by BethLS

Laura,

It was indeed about a year ago icon_smile.gif

Thankyou for the advice everyone!




Goodness, you can certainly raise your price then without apology. Everything has jumped since then. icon_smile.gif

leah_s Posted 13 Nov 2010 , 9:00pm
post #10 of 17

Oh I had no idea we were talking about a year old qote. Heck no, tha'ts not valid any longer!!

BethLS Posted 13 Nov 2010 , 10:17pm
post #11 of 17

Thanks ladies, I do appreciate the input! I will let her know icon_smile.gif

I also would like to know how often you raise prices (as one poster just asked)...icon_smile.gif

cheatize Posted 13 Nov 2010 , 11:22pm
post #12 of 17

I think your prices should be set so they can handle some fluctuation in your costs. After all, you don't lower your prices if the cost goes down, do you? Do costs ever go down? Okay, let's say if you hit a great sale. Usually you don't pass your savings on to your customer. Once or twice per year, barring any large price changes, should be often enough to take a look at your pricing to see if it still works for you, if you're still priced competitively, etc....

pattycakesnj Posted 13 Nov 2010 , 11:47pm
post #13 of 17

Costs of ingredients fluctuate daily so every 6 months or so, I reevaluate my pricing and adjust accordingly.

andrea7 Posted 14 Nov 2010 , 12:22am
post #14 of 17

In my proposal if you walk out of the tasting without booking prices are subject to change. So tomorrow my prices could be higher.

costumeczar Posted 14 Nov 2010 , 12:27am
post #15 of 17
Quote:
Originally Posted by cheatize

I think your prices should be set so they can handle some fluctuation in your costs. After all, you don't lower your prices if the cost goes down, do you? Do costs ever go down? Okay, let's say if you hit a great sale. Usually you don't pass your savings on to your customer. Once or twice per year, barring any large price changes, should be often enough to take a look at your pricing to see if it still works for you, if you're still priced competitively, etc....




This is so true...I raise mine periodically, but not on a regular schedule. it depends on what the market in my area is doing. I check the other businesses in my area to see what they're doing. I raised my prices recently, but I hadn't raised them much in the last couple of years because of the economy and because nobody else in town seemed to be budging either.

cai0311 Posted 15 Nov 2010 , 2:34pm
post #16 of 17

I will be raising my prices next month from $2.50/serving (buttercream) to $3.00/serving.

There is a guy in a near by town that raises his in September. Starting next September that is what I am going to do. It is usually that time of year I start booking the following year's weddings so in my opinion, a perfect time to increase prices.

classiccake Posted 19 Nov 2010 , 4:13am
post #17 of 17

I generally change prices the first of the year, if needed.

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