Im just really looking for some advice. When i started out in the caking business i had prices for wedding cakes, but as the years have gone on i had never increased my prices and i found alot of people were saying how cheap i was. And i think they only picked me because i was the cheapest in the area. Now of course i am happy to have the custom but i want it to be for my work not for my prices. So recently i increased my prices for wedding cakes and now i am finding that i am not getting any customers. Have i raised them too much? Im based in the UK and i was charging £2 - £2.15 per portion, now i am charging £2.75 per portion. Any advice would be great.
That seems really low...What's the market in your area like? If there are a ton of bakers working either legally or illegally there, you could be experiencing the "cake depression" that's going on. Prices are actually dropping in some places because there are so many people dropping their prices to try to undercut the competition. I wouldn't drop your prices because that seems very low to me even with your price increase, but you need to look and see how much you're actually making, what your competition is like, and make that decision for yourself.
If people were telling you that your prices were cheap that's probably part of the problem, though. It might take people some time to adjust to the fact that you're not undercharging anymore. But weddings bring a new flood of customers every year, so it shouldn't take long for the new wave of brides to come along, and they won't know what your old prices were anyway.