Discounts Debate, But I Feel So Bad...sorry Long
Business By notjustcake Updated 5 May 2007 , 10:58am by MikeRowesHunny
Ok I just got another cake and feel the need to give a discount. I feel if someone has done nice things for me in the past a discount is expected therefore I give it but I feel so bad charging full price. People around me are becoming more aware of cake outside a sheet cake. Where do you raw the line on discounts? I plan on getting a license in 4 - 6 months this is for sure I business for me now, and I feel like I have been giving discounts left and right. Who qualifies and who doesn't ? Thank Goodness my family lives in Dallas they would expect free cakes all the time!!!!
The little girl that babysits when I go on dates. Her mom ordered a cake for her 14th bday so does that qualifies her. I have known them for a while and they have helped us out during a hospital stay, we are close but not really friends.
Teachers?
Doctors? (no, he doesn't give me a discount)
Principal at school?
Vet? (no, he doesn't give me a discount)
Husband's co workers?
What do you give discounts to? an how do you deal with it and when do you make the exception?
I was just talking about this with my therapist yesterday. 
Putting a value on our own talent, time, etc. is sometimes very difficult!
It always helps me to break down the numbers:
- How much did ingredients & supplies actually cost?
- How much time will I spend on it total? What do I want to pay myself per hour?
- Do I receive any other benefit? (trying something new, etc.)
- Would I have spent that much on a gift for this person anyway?
- Is this person providing me with something in return that is worth that much money to me? (advertising, great childcare, another service, etc.)
Just a few things to think about...
I guess like the doctor thing you know they don't give us any discounts I guess he had to learned that too you can't have a business if you can't pay yourself
giving a discount once in a while to a loyal customer is ok, but not on every cake you do. or instead of a $ discount throw in a couple of cookies or cake balls as appreciation
I guess everyone must go throught his process I gotta get over that I find that difficult but must I have three kids they should not expect a discount and no one has asked for one
Since I'm new at selling, I gave two of my customers a discount because their sons are friends with my son (and we know each other, but not exactly friends) and this was their first order, but it's shown on the order form/invoice what the regular price was so they know for next time. Then they won't be as shocked. I have a hard time with this as well.
I give a loyalty discount, meaning the people who order from me on a regular basis, I give 15% off. That's only on cookie bouquets because I have a set price on these.
I WILL GIVE A LOYALTY DISCOUNT TOO...SOMETIMES I OFFER A FREE 8" LAYER CAKE. SOME OF US WITH A SMALLER BUSINESS ...WORD OF MOUTH IS YOUR BEST ADVERTIZING......AND A YUMMY PIECE OF CAKE CAN FILL THAT AD....
IF SOMEONE HAS DONE FAVOR FOR ME OR HELPED ME OUT IN SOMEWAY I WILL ALSO THANK THEM WITH A FREE CAKE.......
HAPPY BAKING
I don't offer discounts and if they asked I would politely refuse. I would never ask for a discount from my friends/family at their jobs. My family I considered it at the beginning, but they refused to pay anything less than full price because they know how much effort I put into it.
The trouble with giving discounts is that word gets out, and before you know it you're the 'cheap' cake lady, and anyone you don't know that places an order thinks you've just hiked your prices! I give discounts to some (we call them 'mates rates' in New Zealand) but I would never dream of charging good friends and family. Instead I make it their present and so far haven't had any complaints. I would be careful, if you give a discount, to ask the recipient to tell people what they *should* have been charged.
I would not give any of the people on your list a discount. I think it is important if you DO give a discount that the person receiving it realizes the break they are getting. I love that KoryAK itemizes it on the invoice. I have offered a friends and family discount of 20-25% but that is for immediate family or people that I have known FOREVER.
mizshelli has a great idea in giving them a better product than they are actually paying for. Recently I did an order for a lady in my neighborhood who was such a pleasure to work with and will give me a lot of business in the future. She did not qualify for a friends and family discount so I made her a little something extra that she flipped out over and was so thankful for.
It is hard to sort it all out. Value your time and your talent!!
Hi,
I try to never get discounts cuz as soon as 1 person hears about it...every1 wants a discount! I find that when I give discounts I find myself almost resenting the cake cuz I am not making as much for all my hard work and the time I take to make my cakes different than people can get anywhere else here. Its simpler to just keep prices the same for everyone all the time. My parents who live in town obviously never pay for a cake and neither does my best friend. Every1 else same price all the time!
Thank you for sharing your stories it makes me feel I am not the only one who has dealt with this issue I will start aing prices to the pictures of my cakes (the good ones) 
so there is no questions asked
I have a genetic discount. If you can affect my genetics you get a 20% discount....otherwise....pay up.
It sounds harsh but making cakes is a lot of work no matter how much I enjoy it. Plus business is business. Discounts are good for reasons...filling out a survey, referrals, mess ups. thank for you buying six cakes a month. But not just because of who you are....
And the day I find a doctor that gives everyday patients a discount...he's mine for life. That is until he goes broke! 
Make yourself comfortable...but don't go broke in the process 
Sometimes I have a cake in mind I particularly want to make and if a friend wants a cake I'll do it for cost if they have NO say at all on the design - that way I get to practice new skills and add something to my portfolio that I might not have done otherwise. When I ask them to pay costs it usually works out at £1 a person (which is $2) my normal cost would be about £3 a person.
Other than that I only offer a discount if I would have bought that person a gift anyway - i.e. I'll knock a bit off if it's in lieu of a present. I'd never make my friends feel obliged to buy from me, I know my cakes aren't cheap and I'm not apologising for that.
I think every cake decorator needs to come to a decision, stick to it and let it be known so that you don't have to keep explaining yourself.
I've been giving vouchers with all my first time customers for 10% off their next order (valid for 1 year and not valid for wedding cakes!), or free delivery of their first order - the choice is theirs. I've had people come back who've actually forgetten about the voucher I gave them, but I remembered!
For close friends (my family don't live in the same country!), I give 25% discount, and my 2 best friends always get a cake as a gift on their birthdays (they choose the flavour, I choose the design!), up to an 8x3in round (or equivalent of 12 servings), if they want a bigger cake because they are having a large gathering, then they pay for the extra servings at my normal rates. I think that's more than fair!
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