Where Are These People Getting These Prices??
Business By BrandyCakes83 Updated 20 Nov 2014 , 9:38pm by smysha
A[@]howsweet[/@], in my experience it [B]seems [B][/B][/B]to be less of a blow after about 40 servings or so. Maybe it's my own slight insecurity at work, but I wouldn't ever say that cake is twelve dollars a serving, for example. Even if it absolutely is that. Which is probably ridiculous, because everyone knows that something that costs $95 is really just $100, why beat around the bush. That probably doesn't make sense...lol.
A few years ago I met a decorator at a mall bridal show (blech, I know & never again!) who worked at a well-known local bakery. At the time, I think I was selling cakes for around $3.25/serving. She was going around to all the bakers and getting our info for comparison....good business, I'd say. I guess her brother was the owner of the bakery and she mentioned how she kept telling her bro that they should raise their cake prices. They started at around $2.00 at the time. Granted their work isn't pristine, or super up-to-date or all encompassing as far as CUSTOM custom cakes go.
Fast forward to today...I think they start their prices at $2.25....Seriously! That's a bakery.
I start at $3.50 for basic cake, buttercream filling and frosting, $5.00 for fondant. Oy....although I can say there's not much comparison as far as execution (with the exception of piping).
Hopefully people will see the difference and if cake is their priority, they will pick me!
I am only starting my business as a cake decorator, but I want to offer something unique to my community as filling and cake flavors.
I have ordered a cake for my sons bday from bakery for $ 35.00 and will try and see what they offer as for taste and decoration quality.
And will try other bakeries too, but not for purpose of undercutting or stealing their customers. Just out of curiosity.
My decorating skills only allow me do decorate with buttercream or non dairy whip topping (which is WAY CHEAPER than buttercream). I think I am going to stick with that.
I have tried working with fondant, gumpaste, making homemade buttercream, making yellow cake, white cake, and those recipes are EXPENSIVE, so I am not blaming cake decorators for charging what they charge. Thank you.
I am only starting my business as a cake decorator, but I want to offer something unique to my community as filling and cake flavors.
I have ordered a cake for my sons bday from bakery for $ 35.00 and will try and see what they offer as for taste and decoration quality.
And will try other bakeries too, but not for purpose of undercutting or stealing their customers. Just out of curiosity.
My decorating skills only allow me do decorate with buttercream or non dairy whip topping (which is WAY CHEAPER than buttercream). I think I am going to stick with that.
I have tried working with fondant, gumpaste, making homemade buttercream, making yellow cake, white cake, and those recipes are EXPENSIVE, so I am not blaming cake decorators for charging what they charge. Thank you.
I charge $150 for a cake that maybe costs me $8 in supplies to make. If that. Pricing your cake is not about cost. And if your ingredients alone are limiting, you are way, way way too close to your price floor.
You cannot compete with Walmart or Kroger. Don't even try. They out buy you on supplies and even with that they may not make a profit on their cakes. They sell cakes to keep mom and pop bakeries out of business and so people will buy everything else at Walmart. Party supplies and bread.
One of my biggest sellers yields $154 after materials. It's 2.25 hours of labor, so I could pay someone, say, 3 hours of labor to make it at $12 an hour and still make $118. No, that's doesn't include basic overhead, but it does include an allotted amount of customer time (ordering and pick up) and paper work. I'm not saying this is the best profit any one ever made, just trying to give you an example of a different paradigm..
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I charge $150 for a cake that maybe costs me $8 in supplies to make. If that. Pricing your cake is not about cost. And if your ingredients alone are limiting, you are way, way way too close to your price floor.
You cannot compete with Walmart or Kroger. Don't even try. They out buy you on supplies and even with that they may not make a profit on their cakes. They sell cakes to keep mom and pop bakeries out of business and so people will buy everything else at Walmart. Party supplies and bread.
One of my biggest sellers yields $154 after materials. It's 2.25 hours of labor, so I could pay someone, say, 3 hours of labor to make it at $12 an hour and still make $118. No, that's doesn't include basic overhead, but it does include an allotted amount of customer time (ordering and pick up) and paper work. I'm not saying this is the best profit any one ever made, just trying to give you an example of a different paradigm..
$8?! Super impressive! Will you post a free tutorial on how you get your costs so low? kidding, kidding! That is a very impressive price though...I don't buy in bulk yet...so maybe if I ever do I can achieve such a low input!
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Original message sent by FioreCakes
$8?! Super impressive! Will you post a free tutorial on how you get your costs so low? kidding, kidding! That is a very impressive price though...I don't buy in bulk yet...so maybe if I ever do I can achieve such a low input!
That's really low, but if you have a $150 minimum you could charge $150 for something that cost you $3 to make, that's why it's a minimum.
I agree with the pricing-not-based-on-ingredient-cost thing, though. My food prices are consistently about 15% of the retail price for the cake. So if I spend $150 on ingredients this week, I can figure that the selling price for what I'm making is around $1000 that week. If I figured my prices based on ingredient costs I'd have a hobby, not a business.
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I charge $150 for a cake that maybe costs me $8 in supplies to make. If that. Pricing your cake is not about cost. And if your ingredients alone are limiting, you are way, way way too close to your price floor.
You cannot compete with Walmart or Kroger. Don't even try. They out buy you on supplies and even with that they may not make a profit on their cakes. They sell cakes to keep mom and pop bakeries out of business and so people will buy everything else at Walmart. Party supplies and bread.
One of my biggest sellers yields $154 after materials. It's 2.25 hours of labor, so I could pay someone, say, 3 hours of labor to make it at $12 an hour and still make $118. No, that's doesn't include basic overhead, but it does include an allotted amount of customer time (ordering and pick up) and paper work. I'm not saying this is the best profit any one ever made, just trying to give you an example of a different paradigm..
Howsweet, I have been on this site for about six months now and I have used a lot of your advices here. I will not compete with Wall Mart. Your posts are like business classes to me.
That's really low, but if you have a $150 minimum you could charge $150 for something that cost you $3 to make, that's why it's a minimum.
I agree with the pricing-not-based-on-ingredient-cost thing, though. My food prices are consistently about 15% of the retail price for the cake. So if I spend $150 on ingredients this week, I can figure that the selling price for what I'm making is around $1000 that week. If I figured my prices based on ingredient costs I'd have a hobby, not a business.
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That's really low, but if you have a $150 minimum you could charge $150 for something that cost you $3 to make, that's why it's a minimum.
I agree with the pricing-not-based-on-ingredient-cost thing, though. My food prices are consistently about 15% of the retail price for the cake. So if I spend $150 on ingredients this week, I can figure that the selling price for what I'm making is around $1000 that week. If I figured my prices based on ingredient costs I'd have a hobby, not a business.
I just bought your book at Amazon.
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I got an inquiry for a 70th birthday yesterday. Her guests will be flying in from her native country (i'm in the US). Her budget is $150 for 100 people! And the party will be this Saturday!
Am guessing there won't be any cake then! 
Funny thread tho' - also love the Satanic Pinterest observation 
AThanks, Natka!
$8 was for a 6 inch cake and was just ingredients and supplies. My minimum is $150, but if someone wants a cake that I just can't force myself to charge more than $144, I go ahead and sell it for that price. It doesn't make sense to me to charge them six more dollars. The $150 minimum is not there to constrict my business. Just to prevent me from doing orders that won't make me any money.
Costume, I didn't know you have a book out! How cool is that? Where can I check it out?
Why, thank you.
Thanks, Natka!
$8 was for a 6 inch cake and was just ingredients and supplies. My minimum is $150, but if someone wants a cake that I just can't force myself to charge more than $144, I go ahead and sell it for that price. It doesn't make sense to me to charge them six more dollars. The $150 minimum is not there to constrict my business. Just to prevent me from doing orders that won't make me any money.
Costume, I didn't know you have a book out! How cool is that? Where can I check it out?
Check my website,I'm not allowed to self-promote on here to keep it kosher.
MimiFix also has a book out, check her site out too.
A
Original message sent by DaysCakes
Am guessing there won't be any cake then! :wink: Funny thread tho' - also love the Satanic Pinterest observation :D
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Her shower cake was purchased 2 years ago by one of my regular customers (who buys from me about 5 times a year for various things). It was an 11x13 banana cake with cream cheese icing. It had her initials and pink border. Very very plain. And it cost $50. That was my best price for a long time customer. How in the world does this woman thinks she can get 20 more servings, WITH nuts (don't know about y'all, but nut prices are comparable to crack these days) and a 2nd tier, covered with fondant pinwheels for 10 dollars more??
I work part-time at Macy's in the Fine (read "expensive") Jewelry dept. True story, I swear to God .......
Had a girl come in to buy a ring. She's lost the last five (yes, FIVE!) engagement rings so boyfriend says she has to buy her own now. (Geesh, she must be some great cook or something if he's willing to put up with that!!)
She looks at two rings, one is a CZ (Cubic Zirconium), both in the $600-$700 range. 3 minutes with her and I know she's an airhead who has NO clue of what she's doing. She tells me she wants the design of ring A, but she wants the stone the size of the CZ ".....but with a real diamond and staying at the same price."
Seriously? You want me to take a $700 CZ ring and replace the stone with a real diamond and sell it to you for $700?
I laid both rings down on the counter, crossed my arms over my chest and said in a very blunt voice: "That's never going to happen." When the poor little thing looked confused, I told her a real diamond the size she wanted would START at $18,000. I got a simple "oh" from her.
So yes, I totally believe your person thought you could take the "CZ Cake" and give her a "real diamond" cake at the very same price.
God luv their little hearts.
she needs to shop on qvc, hsn or something and just get used to cz's--you can have a revolving wardrobe of whonking solitaires & stuff--
wow the lucky dress & cake makers who get her for a customer -- money apparently is no object
Figured as much, always thought you were the Good Witch Glenda. (She 's not one to haunt Pinterest.)
AIt's so tiring being low balled by customers, I charge what I charge, while I appreciate your business, you are welcome to go elsewhere. I am more expensive than my local bakery, and I'm CFL. I put quality ingredients in my cakes and I am crazy busy, I WILL NOT lower my quality to compete with her quantity. That's my motto and I'm sticking to it! :grin:
i hear that!!!!!! i had a lady order a baseball cake and cupcakes. i quoted her $1.5 a cupcake (my usual price is $3) then for a personal "realistic" looking baseball (thats what she said to me) i said $15 once again a steal my 6' cakes start at $20 she had the nerve to say that her budget was $45 inc delivery. i flat out told her go to Costco.
I just had to add this:
It's First Communion season here right now, and usually people will order cakes relative to the number of people they're planning to have for their after parties.
This year we've been getting orders for smaller cakes with more names written on them, no cross, no flowers, etc.
Yesterday a customer wanted a 1/8th cake inscribed with "God Bless" and five names. Yes, it was for an after party. With, IIRC, more than 20 people. An 1/8th sheet serves maybe 9 healthy slices, 12 if you cut them really small without crumbling. I asked her all the pertinent questions -- are you having any other desserts at the party (no), how many people, etc. Nope, she opted out the 1/4 sheet because "it's too expensive". No other desserts at the party "unless somebody takes pity on me and brings something." (yes, she actually said that).
What I thought: There's a difference between being intentionally cheap and honestly not being able to afford a cake large enough for the party. I want to say you're the former given how you're dressed, but I could very well be wrong, so I'll shut up now.
What I said: Enjoy, Ma'am, and have a great rest of the day!
I don't know about you, but when people start balking at supermarket cake prices, you've got to wonder. Our prices went up a dollar for each size maybe a month ago. Ditto our competition across the road and yet another competitor a few miles away. We were told it's in response to the drought last summer and grain prices increasing as a result. Ergo, it's not like people are going to save much going to our competition, you know?
People are funny.
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i hear that!!!!!! i had a lady order a baseball cake and cupcakes. i quoted her $1.5 a cupcake (my usual price is $3) then for a personal "realistic" looking baseball (thats what she said to me) i said $15 once again a steal my 6' cakes start at $20 she had the nerve to say that her budget was $45 inc delivery. i flat out told her go to Costco.
I had a bride ask me to make a 3tier dummy wedding cake and that she was going to go to Costco and buy sheet cakes and serve that to her guests. I said, thats fine, but dont tell the guests I made the sheet cakes! I do not want people thinking that I made those! She ended up ordering from someone else and told the guests that baker made the sheet cakes and the wedding cake. What is wrong with people!
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I had a bride ask me to make a 3tier dummy wedding cake and that she was going to go to Costco and buy sheet cakes and serve that to her guests. I said, thats fine, but dont tell the guests I made the sheet cakes! I do not want people thinking that I made those! She ended up ordering from someone else and told the guests that baker made the sheet cakes and the wedding cake. What is wrong with people!
I can't understand why on earth anyone would order a dummy wedding cake and then buy sheet cakes..that probably cost more than just buying one regular (and beautiful) wedding cake!
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I can't understand why on earth anyone would order a dummy wedding cake and then buy sheet cakes..that probably cost more than just buying one regular (and beautiful) wedding cake!
Unfortunately thats not true if they go to a decorator who charges significantly less for dummies….which makes that decorator a dummy themselves!
AWith so many people finding customized cakes too expensive, how can anyone in the business thrive?
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