Pricing Plan???

Lounge By cakealicious7 Updated 27 Sep 2013 , 11:33pm by jesuisloup

cakealicious7 Posted 23 Sep 2013 , 7:50pm
post #1 of 41

AHi :-) I've been reading alot on CC about how everybody goes about pricing their cakes, and I know how much it frustrates some of you when other people undercharge. Now my question is if a bride contacted you asking for a masterpiece of a cake, and had a really tight budget would you offer her some kind of price plan eg, instalments etc or tell her to go elsewhere? ( I'm just asking because I'm curious )

40 replies
jason_kraft Posted 23 Sep 2013 , 8:16pm
post #2 of 41

AIf a customer budgeted for a basic cake but is asking for a more expensive cake, I would price out the more expensive cake but also discuss ways to simplify the cake's design to reduce the cost.

Of course this only works to a point...if the customer wants a custom cake for $1/serving I would come back with a more general price range instead of spending time on a specific quote and quickly move to end the conversation if the customer sticks to an unrealistically low budget.

cakealicious7 Posted 23 Sep 2013 , 8:47pm
post #3 of 41

AThat sounds reasonable.

CakeGeekUk Posted 23 Sep 2013 , 8:54pm
post #4 of 41

Hi Cakelicious, I agree with what Jason said.  There are some customers who will push and push until they get they're super expensive cake design for little or nothing just by wearing you down with talk of their "budget". A second paired down option for within their budget is always the way to go without, as Jason said, wasting too much of your time and effort indulging their fantasy cake expectations!

cakealicious7 Posted 23 Sep 2013 , 9:26pm
post #5 of 41

AI agree with you about those "budget brides" but I was just wondering about the brides that really live on a low income and can't afford an intricate wedding cake.

MimiFix Posted 23 Sep 2013 , 9:47pm
post #6 of 41
Quote:
Originally Posted by cakealicious7 

I agree with you about those "budget brides" but I was just wondering about the brides that really live on a low income and can't afford an intricate wedding cake.

 

So they purchase a cake they can afford and don't get an intricate wedding cake. Wedding cakes (all wedding cakes) are a choice, not a necessity. 

sixinarow Posted 23 Sep 2013 , 9:59pm
post #7 of 41

Quote:

Originally Posted by cakealicious7 

I agree with you about those "budget brides" but I was just wondering about the brides that really live on a low income and can't afford an intricate wedding cake.

 

I know my husband would really like a corvette...he has to settle for a corvette hotwheel version. Not.In.The.Budget.

I'm a little confused as to what you mean by payment plan though. Are you talking about a payment plan for the deposit or for the final payment? If it's for the deposit, it would probably be on a case-by-case basis depending on how far out the wedding is. Is that what you mean?
cakealicious7 Posted 23 Sep 2013 , 10:07pm
post #8 of 41

ALoool @ the hotwheels version!! I was talking about the final payment of the wedding cake, if the professional bakers or businesses out there offer maybe instalments to pay it off? Reading so many pricing threads on here just got me thinking so I'm just curious lol

jason_kraft Posted 23 Sep 2013 , 10:10pm
post #9 of 41

AAs long as the deposit and the final payment are made in full by their due dates I don't see a problem offering a payment plan. In fact it might be to your advantage if you structure the contract such that if the customer misses a payment a penalty will be applied and/or their order will be cancelled, with the customer receiving a refund less their non-refundable deposit (enforcement at your discretion).

sixinarow Posted 23 Sep 2013 , 10:14pm
post #10 of 41

Quote:

Originally Posted by cakealicious7 

Loool @ the hotwheels version!! I was talking about the final payment of the wedding cake, if
the professional bakers or businesses out there offer maybe instalments to pay it off? Reading so many pricing threads on here just got me thinking so I'm just curious lol

 

:-D I don't care how they pay it off as long as it's paid in full 2 weeks before the wedding. It would be just as easy for them to save away a little each paycheck to then write 1 big check or give 1 envelope in cash as it is for them to pay me every two weeks. I prefer one payment. But I would probably be flexible on that depending on the circumstances. But I'm not flexible on full payment not being in 2 weeks before the cake is set to be delivered. Sets you up for too many issues of trying to track people down to collect last minute payments and the possibility of never getting full payment. Search through the threads and you'll see a multitude of those types of posts because they gave someone until after the wedding to finish paying and never did get all the money.

Smckinney07 Posted 23 Sep 2013 , 10:38pm
post #11 of 41

AExactly what Jason and Six said! And Mimi lol if they can't afford the cake I'm not changing my price because they have a small budget.

I don't accept the order until a deposit is received. I charge for tastings but if they book with me the day of the consultation that $25 goes toward their deposit. Final payment is due within two weeks, all dates are stated on the contract as well. I won't hound someone or chase them down, learned that the hard way. Sure, I suppose if they booked with me very early and wanted to split up the payment I would do the same thing only with a couple installments (this is suggesting the price is high enough-I wouldn't take $25 each week or anything like that).

One of the first questions I ask is about their budget, it gives me an idea of what alternatives I can suggest or details they can live without.

kikiandkyle Posted 24 Sep 2013 , 1:19am
post #12 of 41

AI'd accept a payment plan, but only on the understanding that they had to be paid in full at the same date before the event as anyone else.

A lot of us have been on a tight budget before. I am on one right now. I don't use it as an excuse to not pay my way.

cakealicious7 Posted 24 Sep 2013 , 12:19pm
post #13 of 41

AThanks for the input everybody, it was interesting to read how you guys would handle a situation like that. I especially like that payments must be paid a couple weeks before the event and not after the wedding is over!!

7189de Posted 25 Sep 2013 , 12:53pm
post #14 of 41

Remember bookeeping cost your time. Time is money.

vgcea Posted 25 Sep 2013 , 1:06pm
post #15 of 41

APayment after the cake has been eaten? No way.

cakealicious7 Posted 25 Sep 2013 , 1:38pm
post #16 of 41

AThankyou 718, lol @ vgcea -yeah pretty stupid to do that!!!

vgcea Posted 25 Sep 2013 , 4:16pm
post #17 of 41

A... And yet some cakers do it...

AZCouture Posted 25 Sep 2013 , 4:58pm
post #18 of 41

A

Original message sent by vgcea

Payment after the cake has been eaten? No way.

Oh you betcha they do. Then they come here and cry about how the bride is avoiding paying it, or suddenly has complaints about quality, etc. Like there's any other reasonable answer other than you brought it on yourself, don't try to blame the bride! Obviously yes the bride is at fault and owes it, but no sane business person would allow the situation to even occur. Yet,, it happens.

jason_kraft Posted 25 Sep 2013 , 5:06pm
post #19 of 41

A

Original message sent by AZCouture

but no sane business person would allow the situation to even occur.

Let's not confuse ignorance with insanity.

BatterUpCake Posted 26 Sep 2013 , 12:26am
post #20 of 41

You could offer a cake for title loan at 29.9% interest! Accrued daily....and send someone to break their kneecaps when they don't pay. I like the idea...

Shishka4 Posted 26 Sep 2013 , 12:32am
post #21 of 41

Since I only do cakes as a hobby, I do the cake for them at the cost of supplies.  But I only do them for people who want a "dream" wedding, but can't afford one.  Obviously if it were my livelihood I would be pretty strict on my payment policies.  So I'm curious of what a typical (good) cake decorator makes in an average year?  Can you live on your income, or is it a secondary source?

BatterUpCake Posted 26 Sep 2013 , 12:43am
post #22 of 41

Lots of people live on their cake income. But it's more than just being a good baker/decorator. You have to be good at running a business as well. Keeping track of every receipt, doing taxes on time, a firm pricing plan taking all elements into consideration, keeping insurance, having legally binding contracts. Taking courses so you are up to date on all of the latest trends, providing great customer service and having people skills. Not trying to discourage anyone but people need to go into this with a complete business plan.

Shishka4 Posted 26 Sep 2013 , 12:52am
post #23 of 41

Thanks for the response BatterUpCake.  I understand and fully agree with your statement, which is one reason I've never pursued becoming a professional.  I have a good paying job, but I LOVE cake decorating.  Maybe one day...

 

Do most decorators work from their homes, or from a storefront?  Just curious.  It would seem very difficult to maintain a storefront business unless you had a conventional bakery business as well. 

kikiandkyle Posted 26 Sep 2013 , 1:51am
post #24 of 41

AI think there are a lot more home bakers now than there used to be, thanks to cottage food laws. I don't know how many of them are really making a full-time income from it though. In states and cities where home baking isn't allowed, a lot of decorators have appointment only studios.

jason_kraft Posted 26 Sep 2013 , 1:58am
post #25 of 41

AAnother option if there is no cottage food law is to rent a commercial kitchen by the hour, again seeing customers by appointment only. It's certainly doable, you just have to build the cost of the kitchen rental into your prices.

Shishka4 Posted 26 Sep 2013 , 2:08am
post #26 of 41

AVery interesting ideas and perspectives that I was not aware of. Thank you for the insight, I appreciate it!

BatterUpCake Posted 26 Sep 2013 , 2:23am
post #27 of 41

Jason, we only have 1 community kitchen for rent in this area. They charge $50/hr for a 3 hour minimum.  A profit does not seem feasible at this rate. Are you familiar with any commercial kitchens that aren't outrageous? If this is the norm than I don't see how the average baker could make a living this way.

kikiandkyle Posted 26 Sep 2013 , 2:32am
post #28 of 41

AWhere I used to live you could rent a kitchen for $20 an hour, with no minimum, but I don't think there were too many cake decorators doing it. I know of a very well known cupcake business in Chicago that runs its business from a shared rented kitchen, there were several food trucks doing prep there too back when you couldn't cook on food trucks in the city.

BatterUpCake Posted 26 Sep 2013 , 2:51am
post #29 of 41

Wow...I thought this place was unreasonably high. But then again I wonder what their rent, insurance and overhead costs are. I'm very curious how many people use it and how they make a profit. I suppose if you are heating hors d'oeuvres off of a Sisco truck for a catering order it is possible to turn a profit. There have to be cheaper places around here but I couldn't find one when I was searching.

jason_kraft Posted 26 Sep 2013 , 2:52am
post #30 of 41

A

Original message sent by BatterUpCake

Jason, we only have 1 community kitchen for rent in this area. They charge $50/hr for a 3 hour minimum.  A profit does not seem feasible at this rate. Are you familiar with any commercial kitchens that aren't outrageous? If this is the norm than I don't see how the average baker could make a living this way.

$50/hour is pretty high, it's been my experience (in the SF bay area, which has a high cost of living) that rentals are normally in the $15-30/hour range. You may also be able to work out a deal with an existing business (restaurant, hotel, church, etc.) to use their commercial kitchen during off hours for much less.

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