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Price Shock!!! - Page 4

post #46 of 68
Quote:
Originally Posted by tinygoose

Colette Peters quote. "People balk at the lowest prices." And it is soo true. You could charge $1 a slice and some people would still remind you that flour, sugar, eggs doesn't cost that much.

Stick to your guns. It's no fun working for next to nothing.


A-freakin'-men to this!!!

I've told folks, "Not everyone can afford me, and that's ok!"

One lady wanted a unique cake, involving fondant work with a special theme. When I asked her how much she was looking to spend, she hesitated and I said, "Let me just tell you that you won't find any Walmart prices with me ..... but there's no way you'd find my style of cakes at Walmart, either!" I actually have something similar posted right on my website (The Dessert Cakes page).

And to those who tell me "it's just a cake!", I reply (and yes, I HAVE said this to people), "Ohhhhhh! You'wanted "just a cake"! Walmart .... Aisle 8 .... knock yourself out!"

because keep reminding yourself .... if it's "just a cake", then they are implying just anyone can do it ... so they should have no problem doing it themselves! icon_rolleyes.gif
post #47 of 68
Quote:
Originally Posted by Kiddiekakes

Oh my..I had to take a second look at your name..I thought it said Maturbater... icon_redface.gificon_redface.gificon_redface.gif

I need a coffee!! thumbs_up.gif



That just means they fly solo when doing a cake icon_biggrin.gif

Mike
post #48 of 68
Thread Starter 
Hsha indydebi you're a trip!

LOL.. you all are so nice and funny. And yes, I know my username is a bit.. risque! but I thought we could use some naughtiness... And some of you have referred to me as "she" and "her", but I'm a man.. ha.. i know we're a rare breed around here so I forgive.

And I know I need to upload pics, but just haven't out of sheer laziness.

Well, I have been sticking to my prices but it's hard. Someone here said that I'm not marketing to the right people.. and I totally agree.. where can I find "the ladies who lunch"?
post #49 of 68
That was me referring to the target market. That's where your homework comes in. And I was in the same boat myself....so I feel you.

First...I started looking where other "high end" companies were advertising, then I worked backwards.

I also started to gear my marketing to vendors instead of brides. (this part is IN progress....as my lightbulb came on only a few months ago LOL) I joined several wedding vendor associations, as these are the people that are meeting the brides/ large party clients first. Wouldn't you know.....I'm the only cake person in two groups, and one of two in the other. So 2010 and beyond looks promising!
post #50 of 68
Quote:
Originally Posted by dkelly

Anyone else think the OP's screen name is hilarious? icon_lol.gif



I guess I must be from the old school. I don't see any humour in the OP's screen name at all.
post #51 of 68
Quote:
Originally Posted by dkelly

Anyone else think the OP's screen name is hilarious? icon_lol.gif



I guess I must be from the old school. I don't see any humour in the OP's screen name at all.
post #52 of 68
I'm in Ohio too. I get the same thing. I actually had a lady tell me that my prices I was quoting was the same as the other bakers in town, and since I was a home baker, they should be less! The nerve. I told her I coudln't charge any less and make money and she hung up on me. NEXT!

I do know some who charge less around here, one even in my little town (and I've lost some weddings to her) but I won't back down. I don't want to be so busy that I end up hating this job.

And yes....I think the OP's name is pretty clever.
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post #53 of 68
Quote:
Originally Posted by masturbaker

And I know I need to upload pics, but just haven't out of sheer laziness.



I mean I haven't either for the same reason but at least I have a web page etc. So get with the program--with your screen name you need the credibility yes?

So an idea for you is to target florists and venues and other wedding vendors. Because it's not just the ladies who lunch it's the ladies who celebrate in style. But I mean I not only don't know if you do weddings I don't know how you do them. I might be just wasting my type.
I was addicted to the Hokey Pokey, but I turned myself around.

 

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post #54 of 68
Or take away credibility after we see what those photos look like. icon_lol.gif
Whisking you into submission.
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Whisking you into submission.
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post #55 of 68
I Live in Michigan and get the same thing. I had young lady ask for a baby shower customed designed of course. I gave her a price and said that's expensive! then she turns around and asks for a cake that looks like the bottle of 1800 tequila. I nicely told her if you thought the baby shower cake was expensive then you're definitely won't want the tequila bottle cake for me. My attitude is go to Walmart, Sam's Club and get your cake. HA!
post #56 of 68
Quote:
Originally Posted by ziggytarheel

I did, however, want to mention something about the restaurant cake analogy. As a consumer, that particular explanation wouldn't work for me. When I go out to eat, part of the way that I always justify the expense is knowing that the price of my food is based on much more than the actual food itself. On top of the labor to produce the food, there are other salaries to pay (low as they may be), there is the lovely table and table ware, the dishwasher has wash not only the food prep materials but also my eating utensils, there are utilities to pay not only in the kitchen but the dining room, the dining room decor has a price, the extra large parking lot has a price, etc. This is why I pay more for their dessert in the restaurant. It does cost more to provide a pleasant place to eat my food than to take it home to eat it.

I say all that realizing that I would pay the same for take out (sans tip). Maybe no one else would think that way, but I do. I always think about that in wedding cake pricing threads, since the bride is probably paying separately for the place for people to eat, for the dishes they eat the cake on, for someone to wash those dishes, etc.



There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.
post #57 of 68
I was told by a business associate if your cakes are worth $200 then you charge $200 because when that person income increases they will go to the next person and pay more for that cake because you will be known as the CHEAP cake lady. In others words charge what you are worth either they take it or leave it! HA!
post #58 of 68
Quote:
Originally Posted by Jenn2179


There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.



AMEN Jenn! The restaurant analogy does work with home or independent bakers because they too have employees to pay, equipment and supplies to buy, utilities to pay...just because they are not part of a restuartuant chain doesn't mean that they don't have expenses too. Usually their expenses are higher than a restaurants because prices do down when volume goes up. Home bakers who rely on retail or club warehouses for their ingredients often have the highest base cost for cake supplies.

If a baker is a single-person unit (either home baker or with a small store front) Their job is not just the baking and decorating of the cake only. They are also their own delivery driver using their own vehicle (gas/car maitenence expenses), their own dishwasher, promoter, advertising department...it's only ONE person doing the job of many people!
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- Lady Gaga
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post #59 of 68
Quote:
Originally Posted by CeeTee

Quote:
Originally Posted by Jenn2179


There are a lot of things that a person doesn't realize a "home baker" has. How about the $2000 for the 20 qt mixer I have, the $250 for the baker's rack, the thousands I have in cake pans. The $4500 I spent on my Deluxe oven. My commerical fridge and commercial freezer which were $1000 each. Yes if I only used the stuff I had before I started this business then I wouldn't be out much but that's not how it works. I may not be paying rent but I am paying most of the other things that needed to be purchased with a non-home based business. Plus many of our ingredents and such cost more. I can buy a 50 lb bag of sugar for less than $20 but if I just get a 5 lb bag from the store I am paying $2.49. So my base price is more expensive than if I can buy in bulk and store it.



AMEN Jenn! The restaurant analogy does work with home or independent bakers because they too have employees to pay, equipment and supplies to buy, utilities to pay...just because they are not part of a restuartuant chain doesn't mean that they don't have expenses too. Usually their expenses are higher than a restaurants because prices do down when volume goes up. Home bakers who rely on retail or club warehouses for their ingredients often have the highest base cost for cake supplies.

If a baker is a single-person unit (either home baker or with a small store front) Their job is not just the baking and decorating of the cake only. They are also their own delivery driver using their own vehicle (gas/car maitenence expenses), their own dishwasher, promoter, advertising department...it's only ONE person doing the job of many people!



But, my point had nothing to do with cakes coming from a huge storefront bakery or a home bakery. It has to do with comparing it to a restaurant with a dining room. In those restaurants, you are also paying for the table you sit at, your waitstaff, busboys, hostesses, place setting, decor, large parking lot, etc. When you buy a cake, you are then providing those things yourself. A bride is paying for a venue, table and linen rentals, etc. That's my point. There are expenses in the kitchen of the restaurant just like their are expenses in the bakery "kitchen". I was talking about the rest of the cost of that restaurant cake, expenses the customer covers one way or another. That's all. Maybe I'm the only one who thinks that way, but I think the points are worth remembering.
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post #60 of 68
Restaurants have lower per-person overhead costs. Their desserts are 99% of the time frozen from GFS and Sysco .... that is not a guess. I go to the food shows, I see what's there, I see the exact same things in restaurants. Restaurants are not meeting their overhead on a slice of frozen cake .... they are meeting their overhead on the big meal they just served to the 4 people at the table.

Restaurants may provide the table and the waiter to bring it to you, but I'm providing the delivery vehicle and the delivery person to bring it to you. And I'll bet your a$$ that my delivery person makes WAY more money than a wait staff person in a restaurant (payroll ... not tips, because tips do not come out of the restaurtant's overhead). I'm also using that delivery vehicle to make 1 to 3 wedding cake deliveries on a Saturday .... the restaurant gets to use that table 20 or more times a day. My van costs way more than a table. The restaurant recoups it's cost of the table in a VERY short time. And the restaurant doesn't have to pay commercial auto insurance on that table.

Yes .... it is a VERY good comparison.

(I've also had restaurant people tell me "I'm not working for you .... working for a caterer is WAY harder work than working in a restaurant!". icon_biggrin.gif )
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