Hi so I started my little bakery at home for the time being I make cake pops so I want to know how much should I charge for a deposit ? Right now I'm doing where if there total was twenty dollars worth of cake pops the deposit would be 50% from the total which would be 10$ deposit and two weeks before thier event they have to be payed in full which the total would be 20$ so basically they've payed 30$ in total for cakes and deposit I want to know if that's fair or way too much ? I need answers ASAP !!! Thank you
Your customers are paying you $30 for a $20 order? Dang! Teach us all your secret to making extra... :)
The deposit (or retainer as some call it) is to hold the date and guarantee the work, but it should go toward the total owed...
So if their order comes to $20 and you use a 50% deposit amount, they would pay $10 upon order and $10 twe weeks before...
Though, for a $20 order, I would recommend just getting payment in full up front. Anything less than $50 (at least) shouldn't be an issue to get full payment at the time of order.
Do you have a minimum order amount?
$20 is by my guess not even a dozen cake pops?
No $ 30.00 isn't too much, its too little. And yes it's not fair to you. Make a minimum order amount at least $ 50.00 With 50% deposit and $ 20.00 total order, yes 10.00 deposit and $ 10.00 2 week s before the event.
I charge a retainer for cake orders, and a deposit for equipment (a deposit is something that is paid back).
I just can't bother turning om my oven and taking all that time/ effort to prep and clean for a mere $20.
^^^ Or chase someone down for $10 and later for $10 more.....
My minimum order is $ 75. 00 I have ordered from other home bakers and the least that they charged is $25.00. But one of those home bakers has a high turnaround a week and she has everything in stock.
I'm with Jedi. A $20 order isn't worth interrupting my scheduled nap.
If you rent a commercial kitchen and need to increase your volume, small and simple orders can be a great way of filling slack time. We charged $30 for a dozen basic cupcakes and they were very profitable because we could work the production time around other orders that week. However cake pops are probably too labor-intensive to be worthwhile.
I have a $50 minimum order. Anything less than $100 needs to be paid in full to book the order. Over $100 requires a 50% non refundable retainer and the rest is due 2 weeks before the event. Less than 2 weeks requires the whole order to be paid in full.