I've looked at them, mine are just setup differently, they are just basic pricing matrix's I've found on CC. I was just trying to give her an idea of what people take into consideration when pricing-since she was asking about the CakeBoss software.
No worries, I totally understand where your coming from! I get frustrated too, like you I depend on this income and I've worked very hard to build/maintain a customer base.
Makes total sense and thanks, I appreciate that.
Howsweet, I definitely am implying that people don't know the difference between the price of a drop cookie and the price of a custom cake, because they don't. Hahahaha! If you're going to a bakery where they're churning out bulk cupcakes and say that's how you're going to set your pricing, you need to do some work.
I really thought people would understand they have to compare similar things. When I talk about comparing your prices with a store front bakery, I'm not talking about one of those places that sells bread or has piles of cookies and cakes ready made - I'm talking about cakeries. Places that specialize in custom cakes. Forgive me, but in my opinion, if a person can't figure a few things like that on their own, I can't see why they think they need to start a business. Any of us who runs a successful business knows full well there are many decisions, dilemmas and uncharted territories to be navigated. You have to be able to figure out quite a few things on your own.
AYour completely right! The market is oversaturated as it is between new 'businesses' and the media (I'm especially aggravated by magazine articles that list cake decorating as a quick and easy way to make extra money from home) it can be difficult to make a good living. If you can't take the time to do the necessary research or even figure out a business plan you probably aren't going to do very well, I completely agree.
AYou are not charging enough. If you are starting a business you have to figure in everything into the cost. You have to also figure in your pay. Pay yourself from the very beginning or you will never be able to pay yourself. Write yourself a paycheck each week or two. You also have to think if you want people to take you seriously you have to serious prices, not Wal-Mart prices. You can not get make every cake in town for everyone. Raise your prices and you will get a better quality clientele. Also when you are to cheap you devalue the profession for the others in your area. I charge $5 for those cupcakes. My very first real cake order was for a Quinceanera cake, 10 cakes stacked with pillars, fountIn and bridges, it was huge. I was scared to quote the price. I sold it for $350 that was 3 years ago. Today that same cake would be $1200-$1800 maybe more. You learn along the wAy but if you are going to loose money you might as well just do it for free because basically you are. People will respect higher prices when you turn out products custom made and better than anyone else.
Pay yourself from the very beginning or you will never be able to pay yourself. Write yourself a paycheck each week or two.
This policy might work for the "hobby/business" owner, part-time cakers working from home, and anyone with an outside income. But for those who rent a commercial kitchen or own a retail shop: pay bills first then put money aside for slower months. You are the last to get paid.
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Original message sent by MimiFix
This policy might work for the "hobby/business" owner, part-time cakers working from home, and anyone with an outside income. But for those who rent a commercial kitchen or own a retail shop: pay bills first then put money aside for slower months. You are the last to get paid.
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if cake business is that hard why stay in cake business at all? From what I read here, it appears like it's a " cut-throat' industry. How can anyone keep afloat with this kind of competition?
I think quite a lot of people are forcing business where there is none. Being so in looooooove with making cakes, they charge so little, just enough to be able to post something on their happy little fan pages, and not make the hubby mad when the bank statements come in. Really, let's face it. There is very little actual business sense applied to the majority of businesses out there.
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if cake business is that hard why stay in cake business at all? From what I read here, it appears like it's a " cut-throat' industry. How can anyone keep afloat with this kind of competition?
I can say, at least in my area, ALL mom and pop type businesses are difficult to stay afloat. But none as sad as the bakery business...we've seen a number of bakeries come and go within the last 10 years with at least 6 that I can think of off the top of my head in the last, say 3 to 5 years. There was a wonderful French style bakery within walking distance from my house who's counter was awesome but they also baked commercially for restaurants in NYC. First they closed the counter to focus on the commercial side of business then finally they closed up all together.
I honestly think that the fact that people in walking neighborhoods like my town STOPPED walking to the local businesses, make it hard for these places to stay afloat. Couple that with the rising price of ingredients, shrinking paychecks and more emphasis on one-stop shopping at mega-centers all kill small local businesses like the cake/pie/bakery person no matter how yummy the food is. None of them can afford to compete with in-store bake shops which operate at either a loss or near loss pricing just to get folks in the store.
I just checked on the newest cake designer in my town. She's advertising cakes in four states - NY, NJ, PA and CT. Yikes!
if cake business is that hard why stay in cake business at all? From what I read here, it appears like it's a " cut-throat' industry. How can anyone keep afloat with this kind of competition?
That's a really good point. I think instead of trying to explain how to price cakes in 50 words or less, I'm just going to start saying that going into the cake business is usually a bad idea.
And just fyi, all industries are cut throat. Most people just don't see that part because they are employees.
The cake business is saturated with non business people. I would much rather deal with others who have the same goal as I do -- making money. It's really crazy trying to compete with people who don't even understand what that means. I think AZ has described them aptly below:
I think quite a lot of people are forcing business where there is none. Being so in looooooove with making cakes, they charge so little, just enough to be able to post something on their happy little fan pages, and not make the hubby mad when the bank statements come in. Really, let's face it. There is very little actual business sense applied to the majority of businesses out there.
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Bwuahahahaha! So true.
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I was delivering a wedding cake yesterday and I heard one of the wait staff talking to someone, saying that she'd like to open a bakery. I piped up with "no...No, you really don't." The art teacher at my daughter's school asked if I would come in to talk on career day, and I told her sure, if what she wanted was someone to tell them exactly why they don't want to work in the food industry. I could give them all a hard dose of reality that would make them tremble and cry.
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This policy might work for the "hobby/business" owner, part-time cakers working from home, and anyone with an outside income. But for those who rent a commercial kitchen or own a retail shop: pay bills first then put money aside for slower months. You are the last to get paid.
I have to disagree with this statement, Mimi. If you have priced your product appropriately, there is no reason that you should get paid last. And all businesses should have enough cash at opening to weather the slow times. Paying yourself first is one way to make sure you are employing realistic pricing.
Liz
Liz
It's ideal that a business have enough capital to pay it's bills and provide the owner with a regular paycheck. It sounds as if this is your situation! The reality, however, is that many businesses are under-funded. If an owner always paid themselves first, there may not be enough to pay the bills.That is surely a recipe for disaster.
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Original message sent by MimiFix
It's ideal that a business have enough capital to pay it's bills and provide the owner with a regular paycheck. It sounds as if this is your situation! The reality, however, is that many businesses are under-funded. If an owner always paid themselves first, there may not be enough to pay the bills.That is surely a recipe for disaster.
There's a "successful" cupcake shop here that has won all kinds of awards, did one of those cupcake shows on tv etc...the owner hasn't been paid for a year. She told me so.
AI'll add that it isn't only cake businesses that are bad money managers. I have this conversation with a venue coordinator as we discuss the weak finances of people in the business. They complain about not being able to pay their bills all the time, don't have money for this or that...both of us are really disciplined at money so it's befuddling watching these people whine about it. You don't know whether it's bad money skills or whether they really aren't making very much money.
I see a lot of fear of charging too much on this website, from newbies in particular. It not just about being a good money manager and the ability to count costs, it's also the ability to stand up and give an accurate price without worrying what customer's reactions might be to an expensive cake. It's a confidence thing. It's difficult to gain that confidence though, if you are new to running a business or you are always wanting to be super nice to everyone.
Raise the prices and lose the cheap customers. Just tell your price and if people say it's to high say okay, thanks for your inquiry, buh-bye!
I charge $2.75 for my cupcakes, even for the most simple ones, but I am in Boston and everything is crazy expensive up here.
$2.75 is even considered cheap in this area! The retail bakery up the street from me charges at least $3.50. The local supermarket charges $2.49. I think I'm closer to Boston than you are...?.
I see a lot of fear of charging too much on this website, from newbies in particular. It not just about being a good money manager and the ability to count costs, it's also the ability to stand up and give an accurate price without worrying what customer's reactions might be to an expensive cake. It's a confidence thing. It's difficult to gain that confidence though, if you are new to running a business or you are always wanting to be super nice to everyone.
Amen, especially the confidence/wanting to be nice part 
I can empathize, though, because I was very much the same way when I was younger and not as "wise". You don't want people to think badly of you, so you're apt to bend over backward into a backflip. If you're generally like that outside of the cake world, the cake world is only going to emphasize it until you develop that proverbial thick skin.
I think there are a lot of people out there who either don't realize this or realize it and choose to ignore it in lieu of "doing a cake".
As a friend of my husband's says, "You've got to be a bit of a SOB if you want your own business to succeed." Away from his business the friend is the nicest guy imaginable. If he's working, though, watch out!
In general, women are too worried about what other people think. And we analyze stuff too much. Try to go one day without starting sentences with "I think." That's a passive start to stating an opinion, we know that you think it if you say it, but women tend to say that a lot more than men do. It's harder than you think it will be to do. I know that there are others but I can't think of specific ones right now...
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Original message sent by costumeczar
I am the buzzkill...I am the one who knocks. With a big invoice marked "pay me in full or I don't turn the oven on"
This thread has run its course. Way off course, actually. Thank you for participating.
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