Hopefully this puts a little chuckle in your day. Had a call from a girl yesterday to my custom shop who wanted a 3 tiered baby shower cake to feed 100 guests. I gave her my quote based on serving size for buttercream and she went silent. She then says, 'I can't pay that! A lady I work with sells cakes from her home and quoted me $30.00 for a 3 tier cake but she can't do it next week.'
I wanted to laugh and scream at the same time but instead I gently explained that as a legal established business we have rent, utilities, insurance inspection fees, etc. I can't even purchase the ingredients for that price. I don't know of any business in our town that sells cakes for 60 cents a serving, even restaurants. Talk about unrealistic - way under pricing.
I need to edit this to say $60.00 for a 3 tier. NEED more coffee!
Even at $60 that's insane!
And THAT is why people are confused about the price of custom cakes.
I'm not sure how much 60 dollars is ( I live in Ireland) but I'm betting it probably wouldn't even cover the cost of ingredients and materials!!!!!
I write blog posts weeks in advance and schedule them, so this wasn't written in response to this thread, but it applies. http://www.acaketorememberva.blogspot.com/2013/02/weird-undercutting-practices.html
The illegal baker's activities that Melanie is dealing with are proof that this kind of thing does affect the market and trains customers to think prices should be lower than a living wage.
Yep and yep. Sure there are the other factors mentioned by somebody up there, but this is the one that speaks the loudest because it's the customer's pocket book talking.