raising my prices? I've been making cakes for a little over a year now out of my home. I charge $20 per cake mix I use and have stuck to it because it works for both me and the people who order from me. With the whole Crisco thing going on I'm having to switch to hi-ratio which is a lot more expensive than Crisco when you add in the shipping costs. I'm really wanting to charge per serving now- $2.50 is what I'm thinking. Please look at my pics and see if you feel my cakes are worth the price. Around this area it's either me or Wal-Mart so you can see what I up against as far as prices go. TIA
It is hard but it is part of business. Maybe you can do a transition period for your current customers and let them know that your pricing will be changing due to the increase in cost of ingredients. You may loose a few customers, but you don't want to regret doing the cakes for nothing (even we all know we want to do all the cakes, but we have to make it worth our while and cover our cost too)
Crisco changed it's formula -- something about removing trans fats or some such thing. As a result there's been a lot of problems and many cake decorators are switching to hi-ratio shortening. There's a whole thread on it someplace, let me see if I can find the link.
It's not only part of business, but it's expected. You're not paying the same price for practically anything that you purchased a year or 2 years ago. And with the price of gas, that does not just affect our delivery expense, but the cost of strawberries shipped in from California and lettuce shipped in from Mexico.
I just told my hubby tonight that although my normal price adjustment is Sept 1, I may have to adjust July 1 because of the cost of supplies because of the transportation expense that is affecting everyone.
i like the suggestion above..let them know you will be raising your prices..
where can we get hi ratio shortening?
i bought the target brand and will be trying it out tomorrow..will post back
I recently raised mine too. Your work is really nice! You should probably be adjusting your prices due to work/time involved rather than just supply costs. Some of your designs take alot of time! Remember time is money....
I totally agree with Kitagrl, your work is great.
Wow, I hope that you charged $20 per layer and not per whole cakes.
I think your cakes look like they are worth it. 
Also Indydebi has a good point about the increased cost of everything, we all have to adjust. 
Good Luck. 
I totally agree with Kitagrl, your work is great.
Wow, I hope that you charged $20 per layer and not per whole cakes.
I think your cakes look like they are worth it.
Also Indydebi has a good point about the increased cost of everything, we all have to adjust.
Good Luck.
Thanks
Your cakes are awesome and your customers are very lucky to have such talent making their cakes for such a low price.
Yes, you want to stay competitive, but believe me Sam's and Walmart cheat their vendors/drivers to get the low price. If my budget allowed, I would shop some place else based on principle of Walmart under cutting the little guy. But I have to admitt my budget does not allow me to stand on my principles... not with the price of everything sky rocketing!
If your customers are loyal, they will understand the price increase.
I would suggest that you post or advise your customers that on this day - 00/00/07, your prices will be this $$$$. Your loyal customers will appreciate the advanced notice.
Try to figure a price that will last for a couple of years so you don't have to raise your prices every six months or so.
I'm sure your loyal customers will not question your increase, but if you have a few that complain you can explain the situation or send them to Walmart!
Good Luck!
Stop trying to compete with Walmart!
These are clearly not Walmart cakes! My husband calls it the Starbucks effect. People will always be willing to pay for better quality. Why do you think they will spend $4 for coffee when they can get it for $1 at the gas station? They not only spend the money but they will line-up to do it!
Quality is worth the money. If you value your work then so will your clients.
Diane
Your cakes look great! You should have no problem in raising your prices. Walmart does not do the individualized service that you do, they don't do the personalized type cakes that you do.... Just let your customers know that you are going to be raising your prices and they should understand.
I dont know if this would help, maybe someone with more experience can assist.
Would it be worth it to send a little flyer or nicely written letter to your current customer explaining... that with the rising cost of everything you must also raise your prices in order to stay competitive and in business or something like that? So as of this date your prices will now be....
But since you dont want to lose them as customers on their 2nd or 3rd order at the new price you will give them a $5.00 or 5% discount. Or some other type of "gimmic" sorry I know it sounds bad, not sure what else to call it right now? 
Anyway, that way they will be advised and they will appreciate the discount or gimic or whatever?
Good Luck
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