AHi :-) I've been reading alot on CC about how everybody goes about pricing their cakes, and I know how much it frustrates some of you when other people undercharge. Now my question is if a bride contacted you asking for a masterpiece of a cake, and had a really tight budget would you offer her some kind of price plan eg, instalments etc or tell her to go elsewhere? ( I'm just asking because I'm curious )

AIf a customer budgeted for a basic cake but is asking for a more expensive cake, I would price out the more expensive cake but also discuss ways to simplify the cake's design to reduce the cost.

Of course this only works to a point...if the customer wants a custom cake for $1/serving I would come back with a more general price range instead of spending time on a specific quote and quickly move to end the conversation if the customer sticks to an unrealistically low budget.

AThat sounds reasonable.

Hi Cakelicious, I agree with what Jason said.  There are some customers who will push and push until they get they're super expensive cake design for little or nothing just by wearing you down with talk of their "budget". A second paired down option for within their budget is always the way to go without, as Jason said, wasting too much of your time and effort indulging their fantasy cake expectations!

AI agree with you about those "budget brides" but I was just wondering about the brides that really live on a low income and can't afford an intricate wedding cake.

ALoool @ the hotwheels version!! I was talking about the final payment of the wedding cake, if the professional bakers or businesses out there offer maybe instalments to pay it off? Reading so many pricing threads on here just got me thinking so I'm just curious lol

AAs long as the deposit and the final payment are made in full by their due dates I don't see a problem offering a payment plan. In fact it might be to your advantage if you structure the contract such that if the customer misses a payment a penalty will be applied and/or their order will be cancelled, with the customer receiving a refund less their non-refundable deposit (enforcement at your discretion).

AExactly what Jason and Six said! And Mimi lol if they can't afford the cake I'm not changing my price because they have a small budget.

I don't accept the order until a deposit is received. I charge for tastings but if they book with me the day of the consultation that $25 goes toward their deposit. Final payment is due within two weeks, all dates are stated on the contract as well. I won't hound someone or chase them down, learned that the hard way. Sure, I suppose if they booked with me very early and wanted to split up the payment I would do the same thing only with a couple installments (this is suggesting the price is high enough-I wouldn't take $25 each week or anything like that).

One of the first questions I ask is about their budget, it gives me an idea of what alternatives I can suggest or details they can live without.

AI'd accept a payment plan, but only on the understanding that they had to be paid in full at the same date before the event as anyone else.

A lot of us have been on a tight budget before. I am on one right now. I don't use it as an excuse to not pay my way.

AThanks for the input everybody, it was interesting to read how you guys would handle a situation like that. I especially like that payments must be paid a couple weeks before the event and not after the wedding is over!!

Remember bookeeping cost your time. Time is money.

APayment after the cake has been eaten? No way.

AThankyou 718, lol @ vgcea -yeah pretty stupid to do that!!!

A... And yet some cakers do it...

A

Oh you betcha they do. Then they come here and cry about how the bride is avoiding paying it, or suddenly has complaints about quality, etc. Like there's any other reasonable answer other than you brought it on yourself, don't try to blame the bride! Obviously yes the bride is at fault and owes it, but no sane business person would allow the situation to even occur. Yet,, it happens.

A

Let's not confuse ignorance with insanity.

You could offer a cake for title loan at 29.9% interest! Accrued daily....and send someone to break their kneecaps when they don't pay. I like the idea...

Since I only do cakes as a hobby, I do the cake for them at the cost of supplies.  But I only do them for people who want a "dream" wedding, but can't afford one.  Obviously if it were my livelihood I would be pretty strict on my payment policies.  So I'm curious of what a typical (good) cake decorator makes in an average year?  Can you live on your income, or is it a secondary source?

Lots of people live on their cake income. But it's more than just being a good baker/decorator. You have to be good at running a business as well. Keeping track of every receipt, doing taxes on time, a firm pricing plan taking all elements into consideration, keeping insurance, having legally binding contracts. Taking courses so you are up to date on all of the latest trends, providing great customer service and having people skills. Not trying to discourage anyone but people need to go into this with a complete business plan.

Thanks for the response BatterUpCake.  I understand and fully agree with your statement, which is one reason I've never pursued becoming a professional.  I have a good paying job, but I LOVE cake decorating.  Maybe one day...

 

Do most decorators work from their homes, or from a storefront?  Just curious.  It would seem very difficult to maintain a storefront business unless you had a conventional bakery business as well. 

AI think there are a lot more home bakers now than there used to be, thanks to cottage food laws. I don't know how many of them are really making a full-time income from it though. In states and cities where home baking isn't allowed, a lot of decorators have appointment only studios.

AAnother option if there is no cottage food law is to rent a commercial kitchen by the hour, again seeing customers by appointment only. It's certainly doable, you just have to build the cost of the kitchen rental into your prices.

AVery interesting ideas and perspectives that I was not aware of. Thank you for the insight, I appreciate it!

Jason, we only have 1 community kitchen for rent in this area. They charge $50/hr for a 3 hour minimum.  A profit does not seem feasible at this rate. Are you familiar with any commercial kitchens that aren't outrageous? If this is the norm than I don't see how the average baker could make a living this way.

AWhere I used to live you could rent a kitchen for $20 an hour, with no minimum, but I don't think there were too many cake decorators doing it. I know of a very well known cupcake business in Chicago that runs its business from a shared rented kitchen, there were several food trucks doing prep there too back when you couldn't cook on food trucks in the city.

Wow...I thought this place was unreasonably high. But then again I wonder what their rent, insurance and overhead costs are. I'm very curious how many people use it and how they make a profit. I suppose if you are heating hors d'oeuvres off of a Sisco truck for a catering order it is possible to turn a profit. There have to be cheaper places around here but I couldn't find one when I was searching.

A

$50/hour is pretty high, it's been my experience (in the SF bay area, which has a high cost of living) that rentals are normally in the $15-30/hour range. You may also be able to work out a deal with an existing business (restaurant, hotel, church, etc.) to use their commercial kitchen during off hours for much less.