One of the biggest problems we face as a new company is pricing. Can I get some suggestions on how much others would charge for this cake? Thanks
these may help
· Your price should almost never be lower than your costs or higher than what most consumers consider "fair". This may seem obvious, but many entrepreneurs seem to miss this simple concept, either by miscalculating costs or by inadequate market research to determine fair pricing. Simply put, if people won't readily pay enough more than your cost to make you a fair profit, you need to reconsider your business model entirely. How can you cut your costs substantially? Or change your product positioning to justify higher pricing?
They want this cake to be approximattely 7" high , we would have to make two three inches and have to cut each three inch cake into two in which have to fill with filling 5 times ,they want bottom three inch chocolate with chocolate filling and top three inch vanilla with bevarian fillng plus the fondant and everything else shown in picture.
They want this cake to be approximattely 7" high , we would have to make two three inches and have to cut each three inch cake into two in which have to fill with filling 5 times ,they want bottom three inch chocolate with chocolate filling and top three inch vanilla with bevarian fillng plus the fondant and everything else shown in picture.
Your price should almost never be lower than your costs or higher than what most consumers consider "fair".
Sorry, enga, I don't understand these two statements.
1. What does "almost never" mean? When is it okay for a business to charge lower than cost?
2. If a business charges what the consumer considers fair, there is a serious problem. Most consumers want to pay Wal-Mart prices or less.
There have been extensive discussions on CakeCentral about businesses pricing for profit. Please clarify - perhaps I'm missing something.
Sorry, enga, I don't understand these two statements.
1. What does "almost never" mean? When is it okay for a business to charge lower than cost?
2. If a business charges what the consumer considers fair, there is a serious problem. Most consumers want to pay Wal-Mart prices or less.
There have been extensive discussions on CakeCentral about businesses pricing for profit. Please clarify - perhaps I'm missing something.
1. for example for a military family--for a wounded warrior--for a terminally ill person whose family wants to pay something but each party knows they can't afford it so it's mostly gifted like maybe they order a quarter sheet & the bakery gives them a fantastic sculpture or something--never say never right
2. i think enga meant typical consumers of a custom cake like the picture--wal-mart can't price that cake--idk--
maybe something like that
1. for example for a military family--for a wounded warrior--for a terminally ill person whose family wants to pay something but each party knows they can't afford it so it's mostly gifted like maybe they order a quarter sheet & the bakery gives them a fantastic sculpture or something--never say never right
2. i think enga meant typical consumers of a custom cake like the picture--wal-mart can't price that cake--idk--
maybe something like that
Maybe...
1. When I read the OP's post, it appeared that s/he was talking about the difficulties a new business faces with pricing. Donating is something we all do, but it's a separate issue from knowing how to price. But how nice that enga might have brought this to the OP's attention.
2. As a general rule, and CC discussions and rants have borne this out, most consumers prefer all cakes, regardless of type, to be inexpensive. That is a big issue these days that is helping to drive prices down.
i guess that's why she said that it's almost never--
consumers want everything to be inexpensive--it's not new nor even noteworthy that there's disparity between expectations and reality--
enga's pov is pretty clear to me because i checked out the links she posted
ACates, go to Google, and in the advanced settings, search for "how to price cakes" and restrict the results it will give you to www.cakecentral.com
You'll find more threads and good relevant information than you can shake a stick at by doing that. :-)
Sorry to confuse everyone. I thought the OP was asking a different question about pricing. To use an example most say that you should take your cost (ingredients) and X by 3 or 4 to price your products. If it costs you (just for reference) $.75 to make a cupcake you should charge $3.00. But if other bakeries and cake shops in the area are charging $1.75 - $2.50, you should charge within that rage or justify the higher price. You could justify the higher price for reasons like using expensive ingredients, offering a high level of skill or not having any competition.
The "almost never be below your cost" comment might be referring to one of the pricing examples on the website where someone offers a product below value just to get you in the door.
If you want to sell cakes or other products and make a profit, you have to price accordingly like any other business. I was just offering another perspective in regards to pricing as a business.
I also believe that if you offer a superior product, great customer service, and your customers have a good relationship with you and your business, price is irrelevant. Customers are willing to pay the higher prices because it has a value to them.
I visit this little bakery when I want to treat myself. They have the best macarons and chocolate croissants that I have ever tasted but the prices are outlandish. Do I scream at the top of my lungs "THAT IS TOO DARN MUCH FOR ONE COOKIE!" Nope, I just wait quietly in line like everyone else with greedy anticipation and thank my lucky stars that I got one because they are usually sold out for the day by noon. 
AAnd it doesn't have to be hard at all. Decide what will be acceptable profit and whether or not your area can support it. Sometimes, it won't be, and it's a better idea to take another job, rather than lower your prices to accommodate the local budgets. That last part wasn't necessarily aimed at you.
A"I also believe that if you offer a superior product, great customer service, and your customers have a good relationship with you and your business, price is irrelevant. Customers are willing to pay the higher prices because it has a value to them."
Absolutely.
Quote:
i guess that's why she said that it's almost never--
consumers want everything to be inexpensive--it's not new nor even noteworthy that there's disparity between expectations and reality--
enga's pov is pretty clear to me because i checked out the links she posted
Thank you K8memphis.
I remember a while back, I stated that I sold cheap cakes to cheap people. That was my rationale for lowering my standards to make a buck. I started out selling high quality products but the market I was in didn't want to pay those prices. To keep my costs down, I bought mixes, bases, and artificial ingredients. Then I thought, HEY STUPID, THAT"S YOUR NAME ON THESE PRODUCTS! Is that really what you want to stand for? No..... It wasn't and all money is not good money people.
I'm taking a break from caking and trying to get all my ducks in a row. In the future, I want to sale baked products that I can feel good about and stand behind in a market that is willing to pay for quality baking.
I have much respect for scratch bakers, it's not an easy feat. And I don't care what your cakes look like decoration wise, you were notches above what I was producing and you should take pride in that fact if nothing else. Eggs, butter, sugar, heavy cream,etc are not cheap, so charge accordingly.
I'm not the best cake decorator but I can make a pretty tasty cake. I will take the skills that I do have and use them to my advantage. I don't feel confident with my fondant skills as of yet but I'm working on it. When and if I start up again, believe you me, it wont be cheap.
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