I am trying to find a niche for my cake decorating business. I am thinking about specializing in speciality birthday cakes for kids and teens - only. The children cakes would be 3d fantasy cakes....castles, fire trucks, barbie doll cakes, ballet slippers, dragons etc.... The teen cakes would be 3d shoes, dresses, purses etc...
Do you think there is a market for this niche? Will people pay for such elaborate cakes for their kids or shouldd I go with a more traditional niche like wedding cakes?
I live in Washington, DC. I have four kids and have paid for speciality cakes for my kids, but I had to go out of state to find a bakery. I am wondering if more parents do not get the specialty cakes because it is not readly available. I am just not sure if there is a need. -Thanks
You know your area best so if you think your town/city would support the price of a specialty cake, then I think you have a great idea. I live in a very small town and if I charged over $60 for a cake, I am afraid I would be calling 911!!!!!!
Starting a business is all about servicing a need and if you had to go out of state to find a cake like this.. I think you have hit it. You could always offer the others to "supplement" the business if you want to.
You know your area best so if you think your town/city would support the price of a specialty cake, then I think you have a great idea. I live in a very small town and if I charged over $60 for a cake, I am afraid I would be calling 911!!!!!!
Starting a business is all about servicing a need and if you had to go out of state to find a cake like this.. I think you have hit it. You could always offer the others to "supplement" the business if you want to.
I recently changed my thinking of not being able to price my cakes appropriately. I am "SELLING" expensive specialty cakes.
I offer the cheap sheet cake with flowers or even cheaper with sprinkles but barely sell those. My average cake sale is $100-$150 per cake order. So this tells me they don't want the cheap cakes they want a cake to show off with.
You should put out photos of the cute cakes with higher price tags and let the customer decide how much they will pay. Of course there are a few that complain. But they'd complain at a garage sale.
In one of those motivational cd's I heard the speaker say,"Don't spend their money for them, let the customer decide how much they'll spend. They may spend alot more than you would."
anyhow
mpc
I also service a NICHE market. When it rains it pours, but when the rain dries up ...it's the Sahara.
So you need to be able to 'tough' it out during the dry spells.
January was a tough month for me I didn't even make 50% of what I did in December!
so if this is a "trend" then I know when to schedule family trips and classes!!
Anyhow...your pricing should take that into consideration.
I just sold a cake on Friday and it was a specialty fondant cake...my price was $75.00 which they paid gladly.
If I had charged 3.00 a serving for fondant I would've gotten 120 dollars..a very LARGE difference in price.
so guess what? My prices are going to change as soon as I get logged on my web page!!
Washington DC is a pretty pricey area, so you should be able to lock into a clientele willing to pay upscale prices. Rather than lock yourself into the "kid" market, think more along the lines of the 3-D cake market, since business customers are more likely to regularly pay top dollar for retirement party cakes, opening a new office cakes etc...
Take a look at the Mikes Amazing Cakes website. He never states his niche, but you can tell by looking at his cakes what his niche is, and what a cake might cost.
Thank you for your replies. I think that there is a need for speciality cakes in this area. And there are enough people who have the disposable income as well as the desire to "show off" 
I am a native Washingtonian and I am often surprised at what some people pay for things, if they really want it.
RisqueBusiness and txkat I think you are absolutely correct in that I should keep the door open wide enough so that I have enough business all year long. I definitely want the oppoertunity to do steady business all year. The industry that I am crrently in is very cyclical.
I love speciality cakes...Especially 3d cakes. I am going to start out on that path and see where it takes me.
The best thing to probably do is hire a marketing student for an internship to develop a business and marketing plan for you to find out what there is the market for in your area along with logo. The only thing to remember is that they're going to grossly underestimate the cost of getting into business and getting through red-tape and inspections. They do however have access to some really good websites in terms of statistical data on people's purchasing habits.
As Risque put it... You've got to be ready for the Sahara!!!! And BOY is it dry here! 
The first 3-5 years in any business SUCK..
I also have to agree that you don't want to limit yourself down too much in terms of what you'll do. There are a lot of unclaimed markets in the DC area, go for who's not being served. I think the busiest bakers in the next couple years to come are the ones who cater to the allergy market and/or specialty diet market (vegetarian, kosher, no alcohol--flavorings, etc.). Just having a baker who knows that you can't use powdered sugar with someone with a corn allergy because it contains corn starch, using imitation flavorings because of berry, nut, and other allergies. But, that's a niche no one's doing in that area. Remember, Duff is in Baltimore, so there is a market for the shaped cakes in the DC area, but you've got to consider who you're going to go head to head with and if you're ready or not.. You've got to be realistic about who your competition is.
Sticky Fingers is in the DC area and they specialize in vegan, etc and vegan wedding cakes, I think they also have a deli.
mpc
www.mypastrychef.com
That's what I get walking away from the computer for someone stopping by for a cake pickup and not reading before I posted... whoops...
Suffice to say, you've got to find out exactly who all is in your area specializing in what you want to be doing..
I'm trying to get into the 3D cake niche market too. People just love 3D cakes!! I've found that it generates quite a bit of discussion, and people will go to their friends etc. and tell them about the cool cake they saw at a party. A lot of them take pics on their cell phones that they will show their friends too. I tend to get most of my business from people that have seen and tasted one of my cakes, and the people they recommend me to.
I also charge between $100 and $150 for cakes right now. The only problem with that is that I'm putting in 15-25 hours on a lot of my cakes. So, I need to charge more like $200+, and it's hard to get people to pay that for a 5 year old's birthday cake! ...unless you have made a name for yourself like Duff or Mike and can charge whatever you want! It's funny- either people are shocked at paying over $100 for a cake or else they're like "no big deal" and fork the money right over, LOL.
Courtney
I'm trying to get into the 3D cake niche market too. People just love 3D cakes!! I've found that it generates quite a bit of discussion, and people will go to their friends etc. and tell them about the cool cake they saw at a party. A lot of them take pics on their cell phones that they will show their friends too. I tend to get most of my business from people that have seen and tasted one of my cakes, and the people they recommend me to.
I also charge between $100 and $150 for cakes right now. The only problem with that is that I'm putting in 15-25 hours on a lot of my cakes. So, I need to charge more like $200+, and it's hard to get people to pay that for a 5 year old's birthday cake! ...unless you have made a name for yourself like Duff or Mike and can charge whatever you want! It's funny- either people are shocked at paying over $100 for a cake or else they're like "no big deal" and fork the money right over, LOL.
Courtney
I know exactlly what you mean. for me a basic 2 or 3-D cake takes 2 or 3 hours and I feel that I'm worth at LEAST 25.00 an hour!!
then there is the mixing and baking of the cake, cooling it and making my icing, just a POUND of my icing costs about 6.00 to make (3 pounds of butter is NOT cheap!!)...I decided on making a pricing scale to suit MY needs.
TO pay my rents and support myself. You are so right in saying that most people will not pay big money, but then there are some that do not care, and the cost of a cake is "incidental" to their good time!
I have decided to concentrate on the type of cake that I do, I didn't do the QUINCEANERA thing nor will I do the BRIDAL FAIRS...I'll stay out of their market and they'd better stay out of mine..lol.
I advertise that I am the only Baker in Florida that does the type of cake that I do..( I know that given the right amount of money, anyone will do my type of cake!) so I push that "exclusivity" by adding Ribbons, labels and signature boxes to my chocolates.
I just have to hang on till I get my name out there...but ...it's soooooooooo hard not to sell your dream out for that ready cash.
( I will do other cakes for repeat customers and the people from the spa..but I won't go after accounts ) 
I will do any cake they want me too if I not already booked. I have customers who can only afford a $25 8" round cake. I am open to the entire market.
When I said my cakes are running $100-$150 that is not for a sculpted cake. My sculpted vehilces run $350 -and up animals are usually $250 and up. Buildings are $350 up. It depends on what I am doing, I just quoted Michael Jordan Tennis shoes on a box for $550. I just made the deer head and antlers grooms cake for $450. (in my photo gallery)
If you do sculpted you better charge... because everyone can't do them.
mpc
www.mypastrychef.com
I will do any cake they want me too if I not already booked. I have customers who can only afford a $25 8" round cake. I am open to the entire market.
When I said my cakes are running $100-$150 that is not for a sculpted cake. My sculpted vehilces run $350 -and up animals are usually $250 and up. Buildings are $350 up. It depends on what I am doing, I just quoted Michael Jordan Tennis shoes on a box for $550. I just made the deer head and antlers grooms cake for $450. (in my photo gallery)
If you do sculpted you better charge... because everyone can't do them.
mpc
www.mypastrychef.com
I still don't have the name or visibility for people to come and ask me to do these types of cakes, but if that's your market that's great! and if that is the market that a custom baker can get into...
There is BIG money in that...because when people have specific requirements...like a pair of Michael Jordan's they are willing to spend more money.
For my market..there really isn't too much freedom for creativity..I mean when they ask for a bikini babe..she HAS to have certain things..among them ..IS a bikini..lol
I do try to put my more creative things on my web page and I do take as much 'artistic' freedom as I possibly can, where I can.
MPC, those prices that you charge...are NOT so outlandish! I know a Chef/Instructor that doesn't do ANY wedding cake that doesn't begin at 3,000.00, she says the aggravation is not worth it to her to do them for less. I agree!!
Some people confuse a "CUSTOM EDIBLE ART" cake for something they can get at a supermarket or big discount shop...and if we keep on SELLING them at the same prices...the clients will not expect any diffrence between a 50.00 cake or a 500.00 cake!
MPC, I totally understand about making cakes for everyone! I do have a more inexpensive cake line that I offer, decorated with 3 chocolates on a stick..and I call them my "CAKES ON THE RUN"...so, my market doesn't have to just be the high end cakes...even though THAT would be ideal! lol
Risque...you definitely have your niche!! I think you could go a lot higher with your prices too, especially on your sculpted cakes! You do cakes that NO ONE else does in FL and probably most other states too. 
MPC, Wow that's great that you can charge so much for your sculpted cakes! Are your cakes mostly for adults or do you still get that price for kid's cakes too? And did you start out charging that much for sculpted cakes or raise your prices after a while?? Sheesh! I only got $120 for my last dragon cake! She only wanted to spend around $100 and I did the dragon anyway b/c I wanted to see if I could pull off doing an elevated dragon. The annoying part is that a most of these people who only want to spend $100 are living in houses worth $500,000 or more!!!
Courtney
Risque... thanks! Alot of people suggest that the prices are outlandish but most of these cakes are for grooms cakes. I do get some who want it and go for it.
mamacc... The big market is for the 1st and 2nd birthdays. This weekend I did this one for the 1st Bd, she brought the 2007 wilton book and showed me the cake she wanted... 6" & 10" cost $224 +tax
I get a couple of these every weekend.
For all the time I would like to sell these cakes for more, but feel this is reasonable. It took about 1 hour actual decorating time and about 4 hours total.
People complain about the price and I show them something cheaper.
mpc
www.mypastrychef.com
Sheesh! I only got $120 for my last dragon cake! She only wanted to spend around $100 and I did the dragon anyway b/c I wanted to see if I could pull off doing an elevated dragon. The annoying part is that a most of these people who only want to spend $100 are living in houses worth $500,000 or more!!!
Courtney
Courtney...doesn't that just BURN your toast! 
ugh...
Sheesh! I only got $120 for my last dragon cake! She only wanted to spend around $100 and I did the dragon anyway b/c I wanted to see if I could pull off doing an elevated dragon. The annoying part is that a most of these people who only want to spend $100 are living in houses worth $500,000 or more!!!
Courtney
Courtney...doesn't that just BURN your toast!
ugh...
That is how they can afford those houses 
Risque thanks for the complement!!!!!
mpc
www.mypastrychef.com
Sheesh! I only got $120 for my last dragon cake! She only wanted to spend around $100 and I did the dragon anyway b/c I wanted to see if I could pull off doing an elevated dragon. The annoying part is that a most of these people who only want to spend $100 are living in houses worth $500,000 or more!!!
Courtney
Courtney...doesn't that just BURN your toast!
ugh...
YES!!!!! I think it's easier to charge more after they have already bought one cake, and know the quality they are getting.
MPC, the fish cake is adorable!!! I definitely like this new trend of doing outrageous cakes for 1st birthdays and sweet 16's...etc.
I've already started to raise my prices now that I'm getting new customers. I know people around here can easily pay $300+ for a cake but I don't think I can charge that here....YET! I've stared telling people $150-$200 if they want a complex sculpted design and I'm going to keep raising them.
Courtney
mamacc
I just looked at your gallery... Yeah!!! Girl! as word gets out you should definitely be rakin' in tha bucks.
Love the 3d baby, VW Beetle, Basset hound and of course the DRAGON is awesome.
I think you need a nice website so people can show off and tell people to see their cake on your website. Promise you it will pay-off.
good luck.
mpc
www.mypastrychef.com
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