Discounted Delivery Backfired...

Decorating By adven68 Updated 27 Jun 2006 , 1:22pm by antonia74

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adven68 Posted 22 Jun 2006 , 10:03pm
post #1 of 9

I have a cake order for Sunday that is for 150 people for a Christening....the mom wants a sailboat theme, so I came up with 3 different options, one sketch was a whimsical, multi-level cake with lots of decorations....the other was a very elegant, simple design with a fantastic fondant sailboat as the topper....the 3rd option was her idea...a boat shaped like a sailboat....so I found a great photo online and sent it to her explaining that this is a good representation of what it might look like. It was very nicely done, but it only fed, in my estimation, around 50 people...I explained that with this choice I would either add a sheet cake as a base, or make some unseen cakes that will remain in the kitchen...

So, I emailed her the prices....ranging anywhere from $650 - $750, depending on what she wanted. I also told her delivery would be an additional $60. I literally cut that fee in half because it was a big paycheck overall.(The catering hall is an hour and 15 min. + away from my house.)

So, guess what? She wants the sailboat cake....but "don't worry about the other 100 servings cause the hall already had a cake to serve the guests". She, basically, just wanted a showpiece. Fine....but now I'm just charging her for 50 servings. I mean, she's going to pay enough for the cake, but it will be 1/3 of what the cost was initially to be. I never mentioned I was "discounting" the delivery fee. Is there a way I can do it now and charge her the full fee or did I just learn a $60.00 lesson?

8 replies
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sweetbaker Posted 23 Jun 2006 , 1:41pm
post #2 of 9

Is it worth your time and travel now that she only wants the sailboat cake? Can she pick this cake up from you? If not, explain to her that you initially cut the delivery fee down because of the cost of the original design/quantity needed.

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momsandraven Posted 23 Jun 2006 , 1:49pm
post #3 of 9

Did you put the delivery cost in writing in your email to her? If so, I'd say you are probably stuck with it. I always show the full cost on invoices and write down if I'm giving a discount for one reason or another. If that's what you did, then you probably could explain that you can no longer afford to discount the delivery since the order is so much smaller. Good Luck! I can't wait to see a pic, you are SOOOOOOO talented!!

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boonenati Posted 23 Jun 2006 , 1:52pm
post #4 of 9
Quote:
Originally Posted by adven68

I have a cake order for Sunday that is for 150 people for a Christening....the mom wants a sailboat theme, so I came up with 3 different options, one sketch was a whimsical, multi-level cake with lots of decorations....the other was a very elegant, simple design with a fantastic fondant sailboat as the topper....the 3rd option was her idea...a boat shaped like a sailboat....so I found a great photo online and sent it to her explaining that this is a good representation of what it might look like. It was very nicely done, but it only fed, in my estimation, around 50 people...I explained that with this choice I would either add a sheet cake as a base, or make some unseen cakes that will remain in the kitchen...

So, I emailed her the prices....ranging anywhere from $650 - $750, depending on what she wanted. I also told her delivery would be an additional $60. I literally cut that fee in half because it was a big paycheck overall.(The catering hall is an hour and 15 min. + away from my house.)

So, guess what? She wants the sailboat cake....but "don't worry about the other 100 servings cause the hall already had a cake to serve the guests". She, basically, just wanted a showpiece. Fine....but now I'm just charging her for 50 servings. I mean, she's going to pay enough for the cake, but it will be 1/3 of what the cost was initially to be. I never mentioned I was "discounting" the delivery fee. Is there a way I can do it now and charge her the full fee or did I just learn a $60.00 lesson?



Adven
Did you give her a price for *just* the sailboat? If not, just add the extra $60 to the price. otherwise just tell her the truth, tell her that because the order was rather big, you gave her a discounted rate on delivery, but since she is getting a much smaller cake, she will have to pay full price for delivery or pick up the cake herself.
Nati

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leily Posted 24 Jun 2006 , 1:01pm
post #5 of 9

I have to be honest, I was in a similar situation last year. Someone wanted a TON of cookies and 4 Full sheet cakes. So I discounted the cakes with that big of an order.

However alfter seeing the price they only went with the cakes. I didn't state they were at a discount if they ordered the whole order. I still made a little money on it, but for this one I chocked it up to experience.

Next time on a large order I will make a note of some sort that "prices subject to change if servings change"

Just to cover myself and give myself the option of changing price.

But like someone else said, if you didn't give her the price per cake, can you regain some of that delivery fee by adding it to the cake price? Not sure how detailed you got in your pricing.

Leily

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DelightsByE Posted 24 Jun 2006 , 1:15pm
post #6 of 9

My feeling is - you didn't tell her you were discounting the delivery, so as far as she knows, that is just what you charge. I think you're stuck with the $60.

Since my delivery charges are based on things that are generally considered "fixed" costs (with the exception being fuel LOL). I charge what I charge and that is it and that is final. I charge per mile each way for every mile outside of a delivery radius, inside of which I don't charge. If the customer chooses they can ASK me to discount the delivery, and if the order is large enough I would consider it.

I wouldn't ever low-ball a delivery charge especially if you're only doing so to get the job. Start at the top and negotiate down if necessary. IMO!

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Softangelkisses Posted 27 Jun 2006 , 2:32am
post #7 of 9

I think that you are stuck with the $60.00 for this time, but you definatley know what to say for next time..."for larger orders, I will discount my fee, but only for large orders...." just a suggestion!

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Jenn123 Posted 27 Jun 2006 , 1:06pm
post #8 of 9

Always tell people when you are giving them a discount and why!!! It makes them feel they are getting special treatment and can avoid problems like this.

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antonia74 Posted 27 Jun 2006 , 1:22pm
post #9 of 9

Ouch! Lesson learned.

I just did a similar thing. A bride asked for cake and cookies for her wedding this weekend and so I waived my delivery/setup fee....only to find out that the posh hotel it's being delivered to won't let outside vendors use their loading dock area for deliveries. Their ridiculous parking fee starts at $15. So now, I would deliver and set-up for free for one hour AND get to pay for the priviledge!

I let the bride know her vendors must pay for parking and added it to the balance due. I think she was surprised the hotel would charge, but of course they would...they lose money by having outside vendors supply weddings.

I should have let it go for $15, but I didn't.

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