Does Anybody Discount?

Decorating By CBM Updated 11 Nov 2014 , 9:45pm by Dayti

CBM Posted 11 Nov 2014 , 5:24pm
post #1 of 8

I just had 2 sisters (separately) email me about giving them a discount if they both ordered their wedding cake from me.  One actually asked specifically for a discount, stating that another baker said they would give 15% off each cake, where the other asked if I discounted if she referred someone to me.  I explained to both that I don't discount, I felt I kept my pricing reasonable and smaller tiered cakes with sheet cakes is an option to lower the price a bit.  The weddings are 8 months apart.  This got me wondering if anyone discounts for situations like this? I couldn't find anything online doing a general search so I thought I would come straight to the source.  Love to hear feedback on this.  Thanks.  Michele

7 replies
ellavanilla Posted 11 Nov 2014 , 5:55pm
post #2 of 8

Nope. Give the right price for your cake and be confident about it. If it were a wholesale order, that's something to consider, but a custom cake? No. 

 

 

Few of us have so much profit built into our product that we can discount. Retail bakeries make up for lower prices in volume, but usually cannot provide the level of customization an individual cake baker can. So your customer has to decide which side of the pricing issue she wants to come down on. 

 

And 8  months apart? Where is the guarantee that the second cake will happen?

 

Nope.

CBM Posted 11 Nov 2014 , 6:12pm
post #3 of 8

Thanks for the response.  That's how I feel too but wanted to make sure I wasn't losing my mind or something.  My area is very oversaturated with cake decorators, many just doing it on the side and not a full time business.  I had a bride last year that really wanted to go with me.  All fondant cake, fully decorated, I told her $5 per serving.  Her fiance had found someone who told them $2.50 per serving!  I couldn't hold my tongue and asked how she could possibly do the cake for so little.  The woman told me she said that she loved to make cakes.  Well, I love to make cakes too but I need to be able to make money to stay in business!!  My husband is constantly saying I charge to low but if I go to high in my area, I'll price myself right out of business.  I've seen several bakeries price, what should be appropriate pricing, but too high for this area, and have to close their doors.  It's a constant battle. I, of course, didn't get the fondant one and I'm sure I won't get the 2 sisters' cakes because they'll go with the 15% off each cake person. Oh, well.  On to the next one!

shanter Posted 11 Nov 2014 , 7:09pm
post #4 of 8

Quote:

Originally Posted by CBM 
 

I just had 2 sisters (separately) email me about giving them a discount if they both ordered their wedding cake from me.  One actually asked specifically for a discount, stating that another baker said they would give 15% off each cake....

 

She said another baker would give 15% off each cake. That may or may not be true. It sounds like you have a firm grasp on your pricing. Don't discount.

MimiFix Posted 11 Nov 2014 , 7:52pm
post #5 of 8
Quote:
Originally Posted by CBM 
 

My area is very oversaturated with cake decorators, many just doing it on the side and not a full time business... but if I go to high in my area, I'll price myself right out of business.  I've seen several bakeries price, what should be appropriate pricing, but too high for this area, and have to close their doors.  It's a constant battle.

 

The custom cake business has changed over the past few years. You're right, it definitely is a constant battle and will continue this way, with new cakers entering the already over-saturated market. Sadly, they decide to charge below cost to "make a name" for themselves. When they go out of business ("hey, this isn't fun anymore") other new cakers come along to take their place. The good news, is that people always need celebration cakes. If your business does not meet your income needs, I hope you consider branching out into other types of cakes and baked goods.  

Jeff_Arnett Posted 11 Nov 2014 , 8:06pm
post #6 of 8

I pretty much agree with the rest...once word gets out that you are willing to negotiate, you'll get a whole lot of unwanted business!

thecakewitch Posted 11 Nov 2014 , 8:28pm
post #7 of 8

AWhen my bro-in-law got married and want me to make the cake, I did give them a discount. They didn't asked for it but I offered explaining thatit would be our gift. They signed the contract just like anybody else and the receipt clearly states the regular price and the discounted price. If you want to give a discount, it has to be on your terms and not them demanding it.

Dayti Posted 11 Nov 2014 , 9:45pm
post #8 of 8

Quote:

Originally Posted by thecakewitch 

When my bro-in-law got married and want me to make the cake, I did give them a discount. They didn't asked for it but I offered explaining thatit would be our gift. They signed the contract just like anybody else and the receipt clearly states the regular price and the discounted price. If you want to give a discount, it has to be on your terms and not them demanding it.

That's nice, and I would probably do the same if it was family, but from what I understand they are not even the OP's sisters!!

No discount!

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