How Do You Accept Cake Payments?

Business By Limpy Updated 21 May 2015 , 7:53pm by dsahuja27

Limpy Posted 12 Apr 2015 , 10:33pm
post #1 of 13

How do you accept payment for orders? I have an order in August. I was thinking 50% payment one month prior and final 50% one week before event. How do others do this?

12 replies
-K8memphis Posted 12 Apr 2015 , 11:24pm
post #2 of 13

i break it into 3 payments all non refundable and the last payment is due a month before the date, the second payment is due a month before that and the first payment is due when the cake is booked --

i say that the first payment means i'm not going on vacation that week, i'm not booking another cake to take that spot -- it reserves me for them that week -- the second payment enables me enough time to order/gather supplies -- the last payment pays me to complete the job -- i verbally stress that this is all time sensitive no refunds no substitutes -- this caek that date -- done -- i'd probably do a restocking fee if i had an open date but i don't let on to that in advance -- and i'd have to be in the right mood and that doesn't happen often either --

cakemaker61 Posted 13 Apr 2015 , 1:03am
post #3 of 13

When I take a wedding cake order, I require a $50.00 non-refundable deposit which locks in their date and is also deducted from their total balance.  The balance then is due 2 weeks before the wedding.

JeniC Posted 13 Apr 2015 , 4:36am
post #4 of 13

I take a 50% non-refundable deposit at the time the order is placed. The balance is due no later than 2 weeks before the event. There are no refunds if they cancel after that 2 week cutoff. If it's something small and they order within that 2 week window then payment is due in full at the time the order is placed. : ) Wedding cakes are a $100 deposit at time of order with balance due 1 month prior. 

auntmandys Posted 13 Apr 2015 , 4:57am
post #5 of 13

I do a non refundable deposit and they can make payments as they wish until the final is due 15 days prior to the event.(this is when I double check the cake size and make sure the bride still wants the same size and not smaller or larger after getting her RSVPs) I haven't been taking orders lately as I have been too busy with the kids and baby but my deposit was $50. I think I will make it $75-$100 when I get back at it again. If it was a big order to tie up my entire weekend and I couldn't take anything else I would possibly consider making them do more down maybe half. That way if they backed out a few weeks before I am compensated for keeping my calendar tied up completely for that. I try to avoid checks and prefer cash giving them a receipt. I had a bride give me a check that was bad. I fortunately had a funny feeling and decided to take it to their bank or I would have been stuck with the bill! It was less that a week prior to the wedding. (I agreed to take a last minute cake) well after the check incident I cancelled all around.

 I also like paypal for payment and being able to send an invoice. It is neat because you can put a lot of description in there that they are seeing before they pay. It is just an extra form of documentation. I would ask that any paypal payments be made a few days before the due date. (if you need to transfer funds)

Hth.

BakerBlackCat Posted 13 Apr 2015 , 5:19pm
post #6 of 13

If it's for a single cake, payment in full is due at pick-up or delivery.  I haven't been burned yet with the whole personal check thing, and after reading some of the horror stories here lately, I'm starting to cringe at the fact that I say you can pay me by check!  (I'll work on that...)

For larger orders, I require a 35% non-refundable deposit at booking plus a signed contract - and that locks them onto my calendar.  The remaining 65% balance is due three weeks prior to the event date.  I have a cancellation and refund policy written into my contract also.

I used to have a different initial deposit/final payment amount, but the lower initial deposit wasn't quite enough to cover the purchase of some order-specific supplies (individual boxes, small cake boards, etc.), and increasing it to 35% of the order total gave me some breathing room.

costumeczar Posted 14 Apr 2015 , 12:50am
post #7 of 13

I just do a $100 non-refundable deposit to book the date because even though it's non-refundable, if I was the one to cancel I'd return the money, So I don't take the money out of the bank until the cake is delivered, and I don't want to hold onto that much money in the bank. The balance is due three weeks before and I don't turn on the oven until I've been paid in full. I've had to hunt a few people down in 16 years of doing this, but for the most part people will pay on time if you send them an invoice with a due date and a link to a paypal account or an address to send a check. 

Jenn123 Posted 15 Apr 2015 , 12:46am
post #8 of 13

I break  up the payments but need full payment 3 weeks in advance for weddings. This is so that the check has plenty of time to clear if they are paying that way. I will be more flexible for cash, PayPal, or credit.


cakesandknits Posted 15 Apr 2015 , 3:00am
post #9 of 13

For anyone using PayPal or other ways of accepting credit cards, do you charge the fee to the customer or just increase the cake price by a few dollars to cover the possibly of them paying that way vs. just handing you cash?

cakesandknits Posted 15 Apr 2015 , 3:00am
post #10 of 13

For anyone using PayPal or other ways of accepting credit cards, do you charge the fee to the customer or just increase the cake price by a few dollars to cover the possibly of them paying that way vs. just handing you cash?

JeniC Posted 21 May 2015 , 5:57pm
post #11 of 13

this is a little late but incase you're still curious...

I add the Paypal fees that I pay into the amount of my overhead costs. :) 

MinaBakes Posted 21 May 2015 , 7:28pm
post #12 of 13

I've been lucky enough that everyone's paid me cash. They are all friends and family or friends or friends. I don't have a system yet so everyone pays me at delivery and I have not had an issue yet. But I do offer Square as a payment option since they accept all major credit cards. And 10% of what I make goes to a local non-profit organization where I picked up my pup from =D

dsahuja27 Posted 21 May 2015 , 7:53pm
post #13 of 13

I take payment 50% by etransfer or cash and full payment a week before the delivery date. It works fine.

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