I'm needing to send a quote next week to an insurance agency that is interested in me making layer cakes to give as Christmas gifts to their special clients & business partners. They will need 50 to be delivered throughout the week of Christmas. I bake on the side (but will be out for Christmas holidays since a teacher) and the most I've handled is 11 yesterday for Thanksgiving. For 50, should I give a bulk discount? If so, what do you suggest. I typically charge $30-$35 for a 3 or 4 layer cake. I know that is cheap for some, but live in a smaller area where the local bakery sells cakes for $15-$25 although smaller and very commercialized. I don't have a clue what the budget is for this project, but would love the chance to do it as I'm considering opening my own shop in June when this school term is up. This would be great chance to really up my customer base.
Polkadot, How exciting!
Personally, I don't feel as if you should give them a discount, it's a premium service you are providing plus you are delivering them. Whenever I have seen corporate gifts given, they usually have a $50.00 or more, price tag. (re: fruit baskets, cookie trays, turkeys, hams etc...) You don't need to discount!
Just a thought: 50 cakes is a lot of cake. Are you able to handle that amount of volume? When I was younger (like 100 years ago!) I worked in a bakery and I think the most cakes I made in a day was 24 but we were set up commercially to do it. Large walk in freezers and benches, large Hobart Mixers etc...
It could be done. Ten cakes a day is not impossible if you are set up for it. Think assembly line and try to keep your design simple. You have some beautiful cakes in your photo file.
I wish you luck with your bakery you will be opening.
I'm very excited for you too - I'm also a teacher, turned stay at home Mom, turned cake artist! I'm new to all of this, but having just made 72 handmade gumpaste plumeria flowers for 72 corporate retirement cupcakes that I discounted by 10% since they ordered more than 4 dozen - I would say that you should NOT discount. I would not personally make a cake for under $50 - if they want the other local cheaper option, that is okay. If they want your quality of product (from what I've seen in your pictures) they need to be prepared to pay for it. It will take a lot of your time. Really think out your quote before you state it. My very smart Father - in - law said to me recently "Don't subsidize the market by giving away your labor for free"!! A lot of truth to that. I am regretting giving the discount that I gave as it doesn't mean that much to their business, but for me I am basically making all of those flowers for free. Whoops! Live and learn!
Let us know what you decide!!
when dealing with any client, but especially corporate clients, it is NOT out of line to ask, "What kind of budget number are we trying to keep this under?" Corporate folks especially are used to having a fixed budgetary number to work with. 50 cakes x $30/cake = $1500 but as I said in my blog, when ordering food in large numbers, people tend to go math-dumb so we frequently have to spell it out for them. http://cateritsimple.blogspot.com/
If they have a budget of $500, you need to know this up front so you don't even waste your time. And don't forget to include delivery charges. 50 deliveries will be a LOT of time! (Gas expense will be least of the expenses ... your time is the most valuable.)
4 layer cakes for $35? I am SO glad I'm not in your area! That must be really difficult to keep up with!
Good job at landing such a big order. Good luck, and I wouldn't even consider discounting it unless they asked specifically.
Just an idea, check your local florists and see what they charge for delivery and price accordingly. Corporate customers expect a local delivery charge in this range.
In addition to all of the above, you might want to check and see where the cakes need to be delivered to, not just for time and gas, but they may be thinking the cakes will be mailed to some.