I got an order from a woman who is throwing a very elaborate 1st birthday party for her daughter, in Manhattan.
She wants everything in the theme of hot air balloons, with multi-colored cake layers. She ordered:
- 1 Cake (12", 9", 6" tiers)
- 45 small (mini?) cupcakes
- 25 cake pops
- 1 'healthy' cupcake for the birthday girl
I gave her a price of $450 which includes delivery (it's about a 30 minute drive + bridge tolls for me).
I'm kicking myself now thinking I should have charged more, for the amount of material and time this is going to take me. I do this as a side business, I have a full time job and 3 kids so this is all going to be done after hours.
Please tell me if I've lost my marbles, or if I gave her a fair price.
weeelll.....I hate to say it, but I'd have charged about $450 including tax and delivery for just the cake, and I'm not in Manhattan. I think that she got a really good deal, and next time you should charge more
That's what I was afraid of....
Look into the Cake Boss software. It's helped me alot with charging for right price for my cakes and especially with figuring cost. I was severly underestimating my cost and let cakes go for almost no profit! It's great software for the at home baker!
Thank you, Faith! I definitely will!
Look into the software. It's helped me alot with charging for right price for my cakes and especially with figuring cost. I was severly underestimating my cost and let cakes go for almost no profit! It's great software for the at home baker!
I totally agree! I am now so confident in my pricing because of the software. If someone doesn't like my prices, I don't care. Look at what I have in supplies, ingredients and time and I know I'm completely right
Oh and you get a 10% discount as a cake central member.
This is a 2nd post I read from member costumeczar today that I applaud!
Miriam, I agree, the cake alone would start at $450+ (considering yr location) simply decorated, more if it requires elaborate decorations, plus delivery charges. Would you please post pictures so we can see what it looked like.
Please don't sell yourself short in the future, (I tell you and I tell it to myself LOL).
Wow!! Did she ever get a deal. $450 for all that is a steal.
Your cakes are beautiful, you definitely have to charge more next time.
For Manhattan you definitely undercharged. She probably would have paid someone else at least that much for just the cake.
It is so hard to know what to charge when you are just getting established, and then people will come back to you later and want the same low prices. I have a customer right now who wants another cake from me and I gave her a great low price last time (partly because I was still figuring out my pricing, but also because I was offering a deal for people who contacted me through a certain local website). Now I am in a bind because if I drastically raise my price she probably will not order from me, but I just can't do it for the low price I gave her before.
Don't think of it as a mistake, just a lesson learned. Maybe by doing this so cheap she will recommend you to others, and if anyone asks why your prices are higher, you can just tell them since you are taking in more orders you have to raise your prices. You don't wanna work for nothing!
I have to agree with other posters. I live in Sioux Falls SD and the local grocery store is pricing a simple 3 tier round butter cream wedding cake with a simple bead boarder and edging with silk flower sprays scattered around it for $425. Your work is significantly better than what they have.
Lesson learned! But form now on don't ever quote a price off the cuff for cake. Get your prices standardized and in an accounting program like Quickbooks, when someone has an inquire you plug in their order and the computer tells you how much.
If you have to drive over the George Washington bridge and then navigate Manhattan traffic, I would charge $450 for the commute alone...
Thank you all so much for your feedback. Lesson definitely learned, but maybe if I'm lucky I'll recoup the costs if more Manhattan moms decide to order from me. Now wish me luck!!
And btw, I am going over the George Washington Bridge - but it's on a Sunday, so I should only charge $250 for that part