Help! What Do I Say?!?

Decorating By cbyerika Updated 30 Jan 2015 , 10:09pm by cbyerika

cbyerika Posted 29 Jan 2015 , 1:34am
post #1 of 17

Aok so I have an order for a cake for 40, and a smash cake that matches. Also 50 sugar cookies individually wrapped.

For my price I quoted $185 (US). $15 for smash cake $50 ingredients $50 my hourly pay ($10x5 hrs) $1.50 a cookie ($75 total)

Total: $185

Did I price ok??

I got a response today after I already had told her the price and we talked through other details that said she wanted to negotiate my price Bc it seems a little high. How do I respond to that? Is my price too high? Help! I need to respond to her asap but I don't wanna be rude.

16 replies
cbyerika Posted 29 Jan 2015 , 1:51am
post #2 of 17

A

Original message sent by cbyerika

ok so I have an order for a cake for 40, and a smash cake that matches. Also 50 sugar cookies individually wrapped.

For my price I quoted $185 (US). $15 for smash cake $50 ingredients $50 my hourly pay ($10x5 hrs) $1.50 a cookie ($75 total)

Total: $185

Did I price ok??

I got a response today after I already had told her the price and we talked through other details that said she wanted to negotiate my price Bc it seems a little high. How do I respond to that? Is my price too high? Help! I need to respond to her asap but I don't wanna be rude.

[IMG]http://www.cakecentral.com/content/type/61/id/3325912/width/200/height/400[/IMG]

[IMG]http://www.cakecentral.com/content/type/61/id/3325913/width/200/height/400[/IMG]

[IMG]http://www.cakecentral.com/content/type/61/id/3325915/width/200/height/400[/IMG]

savannahquinn Posted 29 Jan 2015 , 2:08am
post #3 of 17

tell her you wish her well  in finding someone else to do it cheaper.  I think you under priced.

julia1812 Posted 29 Jan 2015 , 3:22am
post #4 of 17

ASay no! People always try. I find that annoying. Do you ask the baker in his shop to give you a discount on the bread that has a price tag next to it? Or do you negotiate a price at a hairdresser? No! If you think it's too high, you walk out, right?

DeniseNH Posted 29 Jan 2015 , 4:19am
post #5 of 17

You seriously think it's only going to take five hours to do all that....................tell her no.............you'll thank us later.  Your talent and time is not up for negotiation.  Trust me, she'll be back.  Wait for it.................

Apti Posted 29 Jan 2015 , 5:49am
post #6 of 17

You have requested and received answers on other posts about this cake and about pricing. 

 

http://www.cakecentral.com/t/781992/cake-for-40-albany-by-area

http://www.cakecentral.com/t/782258/help#post_7572469

http://www.cakecentral.com/t/782038/cake-prices#post_7572065

 

If you don't know how to price, you should do the necessary research to learn.  It has already been suggested that you read the threads (there are 27,000+) on pricing here on CakeCentral.  Type in "cake pricing" in the search line.   Another tool is CakeBoss software.  This will help you achieve pricing information for a reasonable cost.  This is an excerpt from an excellent article:

 

http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge

 

"This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business.  As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs."

cbyerika Posted 29 Jan 2015 , 8:57am
post #7 of 17

A

Original message sent by Apti

You have requested and received answers on other posts about this cake and about pricing. 

[URL=http://www.cakecentral.com/t/781992/cake-for-40-albany-by-area]http://www.cakecentral.com/t/781992/cake-for-40-albany-by-area[/URL] [URL=http://www.cakecentral.com/t/782258/help#post_7572469]http://www.cakecentral.com/t/782258/help#post_7572469[/URL] [URL=http://www.cakecentral.com/t/782038/cake-prices#post_7572065]http://www.cakecentral.com/t/782038/cake-prices#post_7572065[/URL]

If you don't know how to price, you should do the necessary research to learn.  It has already been suggested that you read the threads (there are 27,000+) on pricing here on CakeCentral.  Type in "cake pricing" in the search line.   Another tool is CakeBoss software.  This will help you achieve pricing information for a reasonable cost.  This is an excerpt from an excellent article:

[URL=http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge]http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge[/URL]

[I]"This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business.  As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs."[/I]

I'm sorry if I'm bothering people. I honestly just wanted to know how to politely reply. I'm new and this is the first time I've really priced out something. Thank you for your references and help. Again, I apologize for being bothersome.

MimiFix Posted 29 Jan 2015 , 12:17pm
post #8 of 17
Quote:
Originally Posted by cbyerika 
 
Quote:
Originally Posted by Apti 

You have requested and received answers on other posts about this cake and about pricing. 

http://www.cakecentral.com/t/781992/cake-for-40-albany-by-area
http://www.cakecentral.com/t/782258/help#post_7572469
http://www.cakecentral.com/t/782038/cake-prices#post_7572065

If you don't know how to price, you should do the necessary research to learn.  It has already been suggested that you read the threads (there are 27,000+) on pricing here on CakeCentral.  Type in "cake pricing" in the search line.   Another tool is CakeBoss software.  This will help you achieve pricing information for a reasonable cost.  This is an excerpt from an excellent article:

http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge

"This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business.  As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs."
I'm sorry if I'm bothering people. I honestly just wanted to know how to politely reply. I'm new and this is the first time I've really priced out something. Thank you for your references and help. Again, I apologize for being bothersome.

 

The point of Apti's post was to reiterate the ways in which you can learn. If you have a new question, fine. But Hon, you need to start doing these things instead of repeatedly posting the same questions. Good luck in your business.

Magic Mouthfuls Posted 29 Jan 2015 , 12:36pm
post #9 of 17

In response to the latter part of your question...how do I respond to the client...this is my thoughts..

 

To negotiate on the price is only possible if you negotiate on what's being supplied - a lesser price will result in a smaller quantity or lesser level of decoration.  Not a lesser cost of ingredients, not lesser quality of workmanship and certainly not less on your hourly rate - those three elements are not negotiable.  So, for example...'certainly we can work out a price that fits in with your budget, what part of your order would you like to sacrifice'.  

 

Remember, no body wins ALL the jobs they quote on.  If you do, then you are either way too cheap (or some super celebrity cake boss equivalent that everyone wants to boast they had their cake made by).  Just ask yourself, do you want to work for a stranger for 3rd world wages?  Would you ever ask someone to work for you and only offer to pay them a wage that puts them in poverty? If the answer is no, then don't allow others to treat you that way.

 

In future, If the person is a friend (or aquaintance) you could always be one step ahead in your quote with 'this price has been xx% discounted for xx reason'.  That way, they have in their head they are getting a $200 cake for only $175 and wow, they didnt even have to ask, you are already such a nice person for offering your services at a more special rate than everyone else gets.  

 

All the best to you in your cake/cookie adventures!

shanter Posted 29 Jan 2015 , 5:50pm
post #10 of 17

Pricing questions are only allowed in the Cake Decorating Business section and only for legal cake businesses. Please read this statement by the COO of Cake Central:

http://www.cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum

Andrusmommy22 Posted 29 Jan 2015 , 7:40pm
post #11 of 17

AShe needs you, not the other way around. You dictate price, not the other way around. And I agree that you undercharged to begin with. If she calls around, she'll figure that out for herself.

dkltll Posted 29 Jan 2015 , 7:59pm
post #12 of 17

Quote:

Originally Posted by shanter 
 

Pricing questions are only allowed in the Cake Decorating Business section and only for legal cake businesses. Please read this statement by the COO of Cake Central:

http://www.cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum

I don't think the OP asked how to price in this post. She asked how to reply to a customer that wants to negotiate. Come on, let's be nice to each other.

leah_s Posted 29 Jan 2015 , 9:10pm
post #13 of 17

Never, ever negotiate on price and devalue your work.  Negotiate on quantity if you must, but not to such a small quantity that its not worth turning on the oven.

 

I'd like to order 12 large decorated cookies.

Sure, they're $3 each.  When would you like to pick them up?

Oh I can't afford that much?  Can you just make 3?

No, the minimum order is 1 doz.  I'm sorry I won't be able to help you, but you should call (insert the name of the most expensive bakery in town.)

 

I'd like to order an 8" birthday cake.

What flavor would you like, what color decorations, and what message?

(Gives answers.)  How much will that be?

$50.  

What?  I'll give you $40.

No, the price of the cake is $50.  I'm sorry I won't be able to help you, but you should call (insert the name of the most expensive bakery in town.)

MimiFix Posted 29 Jan 2015 , 10:47pm
post #14 of 17
Quote:
Originally Posted by dkltll 
 
Quote:
Originally Posted by shanter 
 

Pricing questions are only allowed in the Cake Decorating Business section and only for legal cake businesses. Please read this statement by the COO of Cake Central:

http://www.cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum

I don't think the OP asked how to price in this post. She asked how to reply to a customer that wants to negotiate. Come on, let's be nice to each other.

 

In this thread, the OP actually asked two questions - one was about pricing ("Did I price ok?) and the other was about responding to a potential customer. From seeing all the OP's threads, it appears her questions are business related and would expect to be found in the business forum. 

 

My work/career right now is all about helping people create an income by running a profitable baking business. In my experience, there are certain personality traits that signal if a person has the potential to succeed. On CakeCentral we each have our own way of communicating; but overall, it does not benefit the OP to sidestep the bigger picture.   

Apti Posted 30 Jan 2015 , 12:28am
post #15 of 17

cbyerika Quote:

I'm sorry if I'm bothering people. I honestly just wanted to know how to politely reply. I'm new and this is the first time I've really priced out something. Thank you for your references and help. Again, I apologize for being bothersome.


You offered a very gracious response.  I did not wish to cause any hurt feelings.  The excerpt from the CakeBoss article quoted above offers a very quick and understandable paragraph as to why broad pricing questions cannot be answered on this forum.  CakeCentral (CC) has worldwide membership.  Someone who is brand new to pricing may be from Denmark, Australia, Spain, New York, or a small town in the midwest with 928 people in the entire county.  

 

The CC members have no way of knowing your skill level, your ingredient and supply costs, your overhead, or how long it takes you to complete a task.  

 

You actually came in with a suggested pricing level that is higher than "most" new bakers selling decorated goodies for the first time.  Some CC members may make "cake for 40, and a smash cake that matches. Also 50 sugar cookies individually wrapped"  for $50, or $130, or $185, or $325, or $500+. 

 

A while back on a pricing thread here on CakeCentral, a business-person who has a baking/decorating business, offered a long and detailed list of suggestions for "things to do" prior to selling cakes.  The list was long, detailed, and concise.  At the very bottom of the list, it said, "And then there's the baking".

 

The "baking" is the easy part.  Pricing and negotiating with clients is the HARD part.  You have received some excellent advice above on how "not" to negotiate down from original pricing.  (I especially liked the response from Magic Mouthfuls.)  I wish you well. 

MimiFix Posted 30 Jan 2015 , 12:38am
post #16 of 17
Quote:

Originally Posted by Apti 

 

A while back on a pricing thread here on CakeCentral, a business-person who has a baking/decorating business, offered a long and detailed list of suggestions for "things to do" prior to selling cakes.  The list was long, detailed, and concise.  At the very bottom of the list, it said, "And then there's the baking".

 

I believe that very clever list was written by @leah_s 

cbyerika Posted 30 Jan 2015 , 10:09pm
post #17 of 17

A

Original message sent by shanter

Pricing questions are only allowed in the Cake Decorating Business section and only for legal cake businesses. Please read this statement by the COO of Cake Central: [URL=http://www.cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum]http://www.cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum[/URL]

This, I did not know. Thank You.

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