sarascakecreations Posted 21 Jul 2011 , 4:34am
post #1 of

Not sure if this should go in the business section but I really don't have a business just sell cakes to family/friends.

Ok so I do my niece's and nephew's cakes all for free and would do the same for siblings.

But I never know what to charge when my sisters-in-law order a cake for their mom or uncle etc.

Last time I charged my sister-in-law $40 for a cake I had recently sold for $65.

This time she ordered a cake for her brother's birthday and I normally would charge $80 for this cake but charged her $50.

So for those of you who give immediate family discounts.... is it like a % you take off i.e 10% or 20% OR do you have a base discount and say whenever you order a cake from me I will discount $20 from the original price?

Thanks in advance!

8 replies
saffronica Posted 21 Jul 2011 , 4:45am
post #2 of

After adding up ingredient costs, an hourly wage, etc., I figured out how much I wanted to get from each cake, then added 25%. Then I offer a 20% "Friends and Family" discount.

If it's easier to see it by the numbers, here you go:
Cake is worth $100

Quoted price: $125
-20% discount: -25
____
They pay: $100

I still get what I think is fair, and they think they're special because they get the Friends and Family discount. They don't have to know that ALL my customers are friends and family!

beaters Posted 21 Jul 2011 , 4:55am
post #3 of

I calculate for regular customers by adding up material cost and adding an hourly wage for the estimated # of hours.

For Friends and family I discount my hourly wage by 1/3.

Regular Example:
Materials: $50
6 hours @ $15 per hour: $90

Cost: $140

Friend Example:
Materials: $50
6 hours @ $10 per hour: $60

Cost: $110

What do you other cake central fans charge per hour?

SarahL4683 Posted 21 Jul 2011 , 5:02am
post #4 of

For me, it really depends on a few factors... how much I like the family member (most important!), if they do favors/discounts for me, complexity of the cake etc... My uncle is a florist with his own business and I know when I order he gives me a ridiculous discount. Like at cost. so for him, he gets a big fat discount. Sometimes I don't even charge him, although he usually finds a way to get me back. But then I have an aunt who always expects a discount and always orders last minute so that one is not as good haha. I'm an only child but come from a family who celebrates birthdays for everyone so mom, grandma, aunts uncles cousins etc... get a free birthday cake.

sarascakecreations Posted 21 Jul 2011 , 12:35pm
post #5 of

ok thanks, I charge $10/hr but I've only been doin this for about 2 years

tiptop57 Posted 21 Jul 2011 , 1:16pm
post #6 of

No freebies and no discounts............never! (I know I am a hard nose.)

But why?

Well look on CC as there have been many, many, many threads on how families, in-laws, co-workers and so-called friends can abuse your talents, strain your nerves, or cause a huge arguments with great fall-out.

Just because this is a food product it doesn't necessarily mean you need to share your hobby or talent for free.

TexasSugar Posted 21 Jul 2011 , 3:13pm
post #7 of
Quote:
Originally Posted by tiptop57

No freebies and no discounts............never! (I know I am a hard nose.)

But why?

Well look on CC as there have been many, many, many threads on how families, in-laws, co-workers and so-called friends can abuse your talents, strain your nerves, or cause a huge arguments with great fall-out.

Just because this is a food product it doesn't necessarily mean you need to share your hobby or talent for free.




Totally agree!

Since I do my cakes for family and close friends, why would I short change myself that way. If they ask me to do a cake, they pay for it, full price, with a few exceptions. If I offer, then it's free.

LNW Posted 21 Jul 2011 , 4:33pm
post #8 of

Depends on who asks. I have friends and family who are very generous to me with their own trades and hobbies so I take care of them when it's cake time. Then I have some who think I just pull these things out of my rear and those people I charge full price or very close to it. They almost never call me back and that totally works for me.

Moovaughan Posted 21 Jul 2011 , 4:50pm
post #9 of

My brother-in-law is a mechanic and he does not give a family discount at all! I always thought that was petty but then I realized that if there was a a complaint he would hear about it for the rest of his life so he might as well get paid full price! (I don't really know if that was his thinking or not:] I think that if they ask you to do a cake it should be quoted full price upfront, that weeds out the "family" members you've never heard of until you started making awesome cakes!(Kinda like winning the lottery).... and then if you want to discount upon delivery your just the best ever!

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