Is Anyone Else Afraid To Quote A Price, Especially Friends?

Decorating By springlakecake Updated 25 Apr 2007 , 9:38pm by Melvira

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springlakecake Posted 25 Apr 2007 , 12:04pm
post #1 of 41

I need to find a way to be more confident in my pricing. I really have only done cakes for family and friends, and a few friends of the family, but I really have a hard time with the quoting. Most people dont ask initially, so then I feel like I need to interject the price. I dont want to make a cake and them not know what I am going to charge them obviously. I dont know if people around here are used to custom cake prices either. So I feel like it is kind of sticker shock, but nobody has ever really balked at me, so maybe I am paranoid. So then I feel like I am always saying, well this is what I charge, but I will give you a discount. But the fact that I really only sell to friends means I give almost everyone a discount. Plus I feel like I need to back up my prices by telling them how long it takes etc. Most people around here have money and have good jobs. I know they wouldnt work for $2 an hour, so why do I feel like I have to? how do you guys handle this?

40 replies
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dodibug Posted 25 Apr 2007 , 12:14pm
post #2 of 41

Simple-you set your prices based on comparable prices for your area and your skill level and stick to it. You don't have to explain yourself, your business or your prices. You are not wal-mart or Costco and you can compete with their prices and you don't want to! You can certainly sell your work to a certain degree but you don't have to explain all the details unless they ask. Either they want it or they don't! thumbs_up.gif

I just had a lady inquire about a cake for 100 and decorated cookies for 100. I sent her an e-mail reply with the info she wanted and my prices (which she hadn't asked yet! crazy I know!) I haven't heard back from her but I'd rather let her know right up front what she could expect to pay rather than invest lots of time and energy into it and then she wants to pay wal-mart prices!

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indydebi Posted 25 Apr 2007 , 12:19pm
post #3 of 41

Either have a price sheet ready to hand them or make your FIRST question, "How much is your budget for this cake?"

If you do this for a hobby, then price is immaterial. If you do this for a business, then you're doing it for the money (and the love of decorating .... I'm not ignoring that! icon_wink.gif ) so there is no reason why you should be "shy" about dealing with that issue.

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dolphinheron Posted 25 Apr 2007 , 12:25pm
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Quote:
Quote:

Either have a price sheet ready to hand them or make your FIRST question, "How much is your budget for this cake?"

If you do this for a hobby, then price is immaterial. If you do this for a business, then you're doing it for the money (and the love of decorating .... I'm not ignoring that! ) so there is no reason why you should be "shy" about dealing with that issue.




Indydebi, you are absolutely right... this is the way to handle it. Never let 'em see you sweat, merissa! icon_wink.gif [/quote]

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springlakecake Posted 25 Apr 2007 , 12:29pm
post #5 of 41

Yeah, well mostly hobby at this point, though I would like to have a real business someday when my boys are just a little older. But also I just dont feel like i can justify time away from my family for little compensation. Do you know what I mean? I dont want to resent doing this! But I think that is a great way to start this out...what is your budget? Thanks, I am definitely going to start with that. that would make it really easy for me to ease into it. You guys are great!

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Melvira Posted 25 Apr 2007 , 12:42pm
post #6 of 41

You know, I feel totally confident when I quote a wedding price because I am completely competitive with even Wal-Mart's prices, but when it comes to single 'party' cakes, I DO get nervous. Because I cannot compete with an $8 9"x13", you know? And I wouldn't want to! People who actually order from me do not balk at my prices, but I think I'd have more orders in general if my prices were lower. But then, I'd be giving it away, you know? I feel your pain, and have the same problems!! Keep your chin up!

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camcat Posted 25 Apr 2007 , 12:47pm
post #7 of 41
Quote:
Originally Posted by indydebi

If you do this for a hobby, then price is immaterial.




indydebi--This is a great point! I'm a hobby decorator (and a rookie at that, hence no pictures posted yet icon_biggrin.gif ) and I have such a hard time with pricing when people ask me to make them a cake. I think I've read through every pricing thread so I know the "rules" but I feel like I'm 'interning' right now and I just don't feel comfortable charging what a professional would charge. But every time I read one of those threads, I second guess my prices.

Thank you for putting this pricing business in perspective! If I cover the cost of my supplies and have a little extra for a new cake toy, I'm good. thumbs_up.gif And now I can quit worrying about it!! icon_smile.gif

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Jaade48 Posted 25 Apr 2007 , 12:57pm
post #8 of 41

Hello Merissa, whether you are doing this for hobby or business, please consider these points: your ingredients are not free when you go to the store, your gas or electric is not free, and definitely your time and skill is worth compensation. I decorated from home for years but I finally opened my shop, and we all give discounts, but don't cheat yourself. For the kind of work we do, the creativity alone is worth the prices we charge. They will not get the designs from the local bakery that they get from us creative bakers and decorators. If they go to the local bakery for 'oh, just something small for a few people', they will get some writing and some roses and will gladly pay more than what you are charging them. I totally agree with Dodibug, they either want it or they don't! Oh, yes, you need a prepared price list, which is adjustable according to the decorations on the cake. I get a 'non-refundable deposit of 50%' upon placing the order and the balance on pick-up. If you take an order and they don't get it, you are the one taking the loss.

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ruralepicure Posted 25 Apr 2007 , 1:06pm
post #9 of 41

I get a little nervous from time to time but you know what, if they don't like the price, I have more time with my family and you certainly can't put a price on that one!

I had a cake just last week, they called and ordered it Friday night and wanted it for Sunday. They were lucky that I wasn't too bogged down already. The grandmother picked the cake up Sunday morning and she seemed a little hesitant when I told her the price. She wrote the check out and was on her merry way. I was nervous the whole day...Will they like the cake?...Did I charge too much? I got my answer, she saw my mother-in-law and was raving about my cake. She hates frosting but was licking my frosting. It sounds gross but she liked it! She already called again to order another cake for Saturday!!

I still have problems on what I charge friends and family. Some people (family) never offer to pay and that's okay, I haven't pushed the issue. However, if I'm busy already, I'm not going to waste my time on free cakes.

Keep in mind, the cheaper your prices, the busier you will be but still may not be making as much as you could be/should be.

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MichelleM77 Posted 25 Apr 2007 , 1:08pm
post #10 of 41

I have that problem too! I don't know why I'm so afraid to talk money with people I know. I used the Cake Boss software to print up an invoice and I made sure to put the regular price and the discounted price on it, so next time they will know what to expect as far as prices. I called it my "(enter your child's name here) discount" because it is their first order from me and they are my friend, or a friend of my son's. I have my prices on my website, but I know that this one person doesn't have internet, and I had the worst time talking money with them. Money, why can't it just grow on trees! icon_smile.gif

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springlakecake Posted 25 Apr 2007 , 1:24pm
post #11 of 41

I would like to have a price list or something on my website, but since I am not a legal business, not a business at all, I sort of feel funny about it. I really want to do it right in the future, but right now I just cant with 3 little ones at home.

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LittleMom Posted 25 Apr 2007 , 1:29pm
post #12 of 41

I am only a hobby baker, but word has gotten around at work so I have a LOT of requests. Every time someone says "cake", the first thing out of my mouth is "My prices typically start at $2 a serving". I will be honest, two out of three people choose not to order a cake from me. That's fine. I don't want to work my butt off making several cakes a week for very little profit.

I think of it this way: I am under no obligation to provide ANYONE with a cake, and certainly never at supermarket prices. Nobody has ever died of not having a cake (although we have some members here on CC who might try to argue otherwise), and it isn't my responsibility to provide family, friends and coworkers with discount cakes. thumbs_up.gif

Plus, I'm mouthy and I love being in charge. icon_biggrin.gif

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MichelleM77 Posted 25 Apr 2007 , 1:30pm
post #13 of 41

oh gotcha. all that legal mumbo jumbo.

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keonicakes Posted 25 Apr 2007 , 1:37pm
post #14 of 41

hey michelle, what's the cake boss soft ware? Maybe you have found something that would help us all with this problem.....
Thanks,
Amy

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JavaJunkieChrissy Posted 25 Apr 2007 , 1:44pm
post #15 of 41

I totally understand what you guys are talking about. I wish this was easier for me...... icon_redface.gif

I have only made 3 cakes "for pay". I am in the process of waiting for my township to mail me my permit so I can then go to the state and start my paperwork to have an in-home business. Then....maybe I will feel a bit more confindence...???

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indydebi Posted 25 Apr 2007 , 1:46pm
post #16 of 41
Quote:
Originally Posted by LittleMom

.....Plus, I'm mouthy and I love being in charge. icon_biggrin.gif




Nuh-uh!! That's MY job!!!! icon_lol.gificon_lol.gificon_lol.gif

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LittleMom Posted 25 Apr 2007 , 1:50pm
post #17 of 41
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by LittleMom

.....Plus, I'm mouthy and I love being in charge. icon_biggrin.gif



Nuh-uh!! That's MY job!!!! icon_lol.gificon_lol.gificon_lol.gif




I ALREADY SAID IT WAS MY JOB! I'M THE BOSS. ME ME ME. icon_evil.gificon_wink.gif [/b]

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cosmicbear Posted 25 Apr 2007 , 1:55pm
post #18 of 41
Quote:
Originally Posted by Jaade48

Hello Merissa, whether you are doing this for hobby or business, please consider these points: your ingredients are not free when you go to the store, your gas or electric is not free, and definitely your time and skill is worth compensation. I decorated from home for years but I finally opened my shop, and we all give discounts, but don't cheat yourself. For the kind of work we do, the creativity alone is worth the prices we charge. They will not get the designs from the local bakery that they get from us creative bakers and decorators. If they go to the local bakery for 'oh, just something small for a few people', they will get some writing and some roses and will gladly pay more than what you are charging them. I totally agree with Dodibug, they either want it or they don't! Oh, yes, you need a prepared price list, which is adjustable according to the decorations on the cake. I get a 'non-refundable deposit of 50%' upon placing the order and the balance on pick-up. If you take an order and they don't get it, you are the one taking the loss.




thanks for this reply Jaade48! i think i am in the same situation as merissa and i like my hobby but i cannot afford to simply give away my cakes. having friends pay for their cakes boosts my ego in a different way compared from their praises alone. i did have one friend who literally gagged when i mentioned the price (and she being someone whom i think can easily afford more expensive things). i immediately replied, "well, if you think that's too much then let's discuss it." she didn't want to and didn't ask for a mark down either. she knows it's totally worth it and that she can only hope to find pricier ones elsewhere. that experience made me feel down for a moment, then quickly made me realize that i am not giving my cakes their due worth! merissa, more power to your "hobby" icon_smile.gif

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springlakecake Posted 25 Apr 2007 , 2:01pm
post #19 of 41

You guys are funny! Thanks for the tips. I have so much trouble with this. My first customer was only paying me $15 for an 8 inch cake that I would spend like 4-6 hours on. I about had a coronary telling her I needed to start charging more. So she is up to $25, which I still think is on the low side of some of the cakes I make for her, but at least it is a step. Plus she is a friend and does nice things for me too, so I take that into consideration.

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trinh Posted 25 Apr 2007 , 2:01pm
post #20 of 41

These are great posts! This helped me too! Thanks cake decorators!!

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Katskakes Posted 25 Apr 2007 , 2:01pm
post #21 of 41

I'm totally feeling you. I am the same way. The first year i started it was nothing but cakes for all my nieces and nephews bday parties. It was more like here is my order, we won't talk about prices. pretty much everyone noticed how much it was taking to make them. so some started suggesting to charge. Well i won't name names, but that same person that suggested asked me for a cake last month. i told her $55 she said i was pricey, i was totally joking as she's a family member. I told her i was thinking $40 all along, she said that's fine. When it came to talking about delivery, she said she thought it was included. BS! (sorry icon_redface.gif )
I told her NO if you are not interested any longer let me know.
This past wknd i made a big baptism cake and 50 cupcakes for a party. She's my mom's cousin and is always willing to pay w/out question. Her first order i charged her $50 for 3 cakes, round and squre about 9 inches each w/filling. She happidly agreed. with this baptism i never spoke to her about price, but was thinking about the same. Now I changed my mind when i was doing the cake, i had such a hard time and i didn't like how it turned out. I told her $40, she said no way... she slipped me $100. Some people get it, some don't.
I definately need to also work on feeling confident about what i do and how much i charge. I do feel at times people are quick to take advantage of you (family and close friends that is). Maybe it's just mine.
eek sorry for the longggg reply.

edited to say: WOW!! i love, love your cakes! you have nothing to feel shy about.

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springlakecake Posted 25 Apr 2007 , 2:09pm
post #22 of 41

Boy if only someone would slip me $100! LOL! The only one who overpays for my cakes is my mom. Bless her heart! She paid me $40 for a 6 inch cake. I was trying to just give it to her, but she insisted, so I took it LOL! Who can argue with mom....!

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aundron Posted 25 Apr 2007 , 2:26pm
post #23 of 41
Quote:
Originally Posted by merissa

Boy if only someone would slip me $100! LOL! The only one who overpays for my cakes is my mom. Bless her heart! She paid me $40 for a 6 inch cake. I was trying to just give it to her, but she insisted, so I took it LOL! Who can argue with mom....!





Merissa, your cakes are beautiful!!! Wow, so many great cake decorators on here, you guys are a major inspiration for me!!! thumbs_up.gif

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MamaBerry Posted 25 Apr 2007 , 2:34pm
post #24 of 41

When it comes to family hmmm....

I find that if I keep my mind open to do a bit of an exchange meaning if they pay for the supplies then they can barter "my fee". OR I make a cake for their birthday, etc. and then it becomes my gift.

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dhawkins Posted 25 Apr 2007 , 2:36pm
post #25 of 41

I have no confidence in pricing and I love to see people happy, but my daughter thinks I need someone for the business end of my cakes - actually, I make a lot of cakes for her to take to school to her friends - working on a sweet 16 one this week - and she never offers to pay me icon_wink.gif She's 17 and instead of buying gifts for her friends, she has me make cakes. I have made a lot of wedding cakes as gifts (family) and the ones that I've done for friends I've charged $50 - all 4 tiers, any flavors/fillings, delivery, set up - anything they ask for. I know, $50 doesn't cover the materials let alone anything else, but in the end I'm always thinking, well, even if it's not exactly perfect, at least they didn't overpay!! I've never had one person show the least amount of dissatisfaction. Last Wednesday, after 2 sick days, one of my co-workers came to ask if I was feeling better - awwwe, she was concerned - and I said yes and she said, good, can you make a cake for tomorrow? My first reaction, no, oh, my gosh, no - bake, fill, frost and decorate - and I come in to work at 5 am. In the end I did it - it was for another co-worker who had just been told that she is cancer free - after 8 months of treatment at the age of 24! Everyone said it was wonderful and they offered to pay me, but I declined to accept. My daughter laughs at me - she says I'll be very popular as long as I provide free cakes! icon_biggrin.gif

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jackfrost Posted 25 Apr 2007 , 2:47pm
post #26 of 41

You would all roll in the floor with laughter if I told you what I charge for my cakes. My family and friends tell me I am crazy, but it started as a hobby and I don't depend on it as an income. Michelle, what is "cake boss software" and where can we get it? I am so addicted to this site I have learned so many things and gotten so many great ideas.

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indydebi Posted 25 Apr 2007 , 2:54pm
post #27 of 41
Quote:
Originally Posted by dhawkins

......My daughter laughs at me - she says I'll be very popular as long as I provide free cakes! icon_biggrin.gif




Boy do I know how this is! I used to do some volunteer work for an organization who had a number of events. I would do the food pretty much for cost (simple finger foods - veggie trays, finger sandwiches, fruits, etc). I was doing it as a favor to them. They didn't have a big budget. I wasn't losing money ... and I thought I was getting good exposure. They were SO appreciative! I rec'd lots of thanks and appreciation ... that was never an issue or a problem

But when I had to stop doing this at cost, suddenly this "big spread" of food at these events dropped to cookies and punch. Suddenly, when they had to pay full price for this type of food, they decided they didn't need that big spread anymore and cookies and punch would be "fine".

Yeah .... I was real appreciated while I was doing it basically for nothing. But when I could no longer do it at cost, I was tossed aside like a moldy dishrag in the kitchen sink!

My brother in law, who runs a business, has a saying: If you give 'em a break, they don't appreciate it...... they EXPECT it from that point on.

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jss Posted 25 Apr 2007 , 2:56pm
post #28 of 41

totally understand....think part of the problem, is being who we are, the giving nature...that's how it started for me...baking and giving...family and friends, in-laws...it got to where i was resenting it...basically, unless it was cake on sunday (special occasion) only...

a couple of weeks ago, dil asked if i'd bake her nephew his lst birthday cake...that her sil would pay ...she wanted an 11x15 and smash cake...also wanted pecan filling (which she would provide)...
figured it'd be ok and it's for dil's family...can't charge, right...baked cakes the wed...called dil thurs..asked when would filling be ready...the girl changed her mind..she didn't have time to make the pecan fill...after 4 phone calls finally got her...says to use pudding w/milk l/2 choc l/2 vanilla filling...told her i'd not used it before...not sure about spoilage...long story short i had to wait til friday to get to cake shop, where i bought the choc bavarian..and vanilla bavarian for filling...
whole thing was i had plans for friday night..and saturday morning...i wanted to have most of it completed that thurs night...and finish it the friday... that's not how it happened...top it off ...i delivered the cake...
luckily...dear friend of mine who did cakes sort of hobby for her as well...says to charge...
when i got there and she asked how much... told her i'd charge her $30...to give me $20 and keep $10 for the l year old...yes, b/c i'd also been invited to the party...

even though know this was well worth it...also felt guilty as i drove off
but empowered at the same time... thanks for letting me vent

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springlakecake Posted 25 Apr 2007 , 3:05pm
post #29 of 41

I know we shouldnt feel guilty. I mean really, I had a party for my son and spent $20 just on BALLOONS for goodness sake. If you have any sort of a character party, everything is expensive. At least the cake can be enjoyed. The little bags and favors are lost or broken, balloons float away or pop by the time the kids get home! icon_biggrin.gif I hate having to justify, but I know I just need to tell people with confidence.

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Melvira Posted 25 Apr 2007 , 3:09pm
post #30 of 41
Quote:
Originally Posted by LittleMom

Quote:
Originally Posted by indydebi

Quote:
Originally Posted by LittleMom

.....Plus, I'm mouthy and I love being in charge. icon_biggrin.gif



Nuh-uh!! That's MY job!!!! icon_lol.gificon_lol.gificon_lol.gif



I ALREADY SAID IT WAS MY JOB! I'M THE BOSS. ME ME ME. icon_evil.gificon_wink.gif [/b]




It's SO cute that you both think you're me!! icon_lol.gif

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