My husband and I have had this discussion before, but we can't seem to come to terms. Do I increase my prices (currently in the $2/serving range for weddings) for most people, or can I feel okay about giving a discount to someone who requests one?

Example: I got a call today for a wedding cake on 4th of July. Bride only needs to serve 50, but wants a 3-tier cake. I gave Mom a price of $125, which includes delivery, setup, cutting, wrapping of all leftovers in napkins, boxing top tier for freezing (if they want to save it), a "Midnight Snack" box of cake for Bride & Groom's first night of wedded bliss, no equipment deposit (why would I need it? I'm cutting the cake and bringing everything home).

She asked if they picked up the cake and cut it themselves, could I cut the price somehow? I told her that they would have to understand that once the cake leaves my control, they would have to deal with any issues particular to that cake and they would not have my assistance, but yes, I could come down to $95 if that was their desire. (Hey, my theory is if you don't ask, you certainly don't get, right? )

Obviously, they will have to discuss and decide if that's what they want to do. Hubby tells me that I shouldn't do that ... that my prices aren't outrageous to begin with and people should be thankful they can get me and all of my services so cheaply.

How do you all handle this type of situation? I want to bump my prices by about 12%-15% to bring them more in line with a higher class of Client, but he is afraid I will price myself right out of the market. I still have plenty of dates available this summer (rare for me), but there are years when I am so busy I can't see straight. We could use the extra money (couldn't we all ???), so what is the problem? And more importantly, what's the solution?

I'd appreciate your thoughts.

Thanks one and all,

Odessa

o my gosh.................you include all that extra stuff and they want it to be cheaper .............. July 4th HOLIDAY......................People crack me up!!!!

Do yourself a favor and raise your prices.The only business you will lose is the kind you dont want

I think this is two questions. First, I think $95 is TOO cheap for that. I agree with dh to raise prices.

However, I give discounts whenever I feel like it. It's my business, I'll discount if I feel like it.

$125 sounds like a really good deal...for them! You are doing an awful lot besides just making the cake! Don't go any lower!!!

Around here most place start buttercream at $3 per serving.

Courtney

I would not do a 3-tiered cake for $125, even without delivery.

When you value your own work and price it accordingly, you are right -- it will attract a higher level of clientele. My rock bottom wedding price is $3/serving and it is not negotiable. I once had a client question my $2/serving for a 2-tiered baby shower cake with hand sculpted fondant animals...I caved a little bit on price, and it was a classic example of "give an inch, and they'll take a mile". Raise your prices and stand firm. You WILL have customers who will pay it willingly (And you get to make more but work less.)

WAY too low on price

(and since when is a hubby who is looking out for the wife, encouraging wife, and obviously values the wife and sees the true value of the work produced...
being "controlling"? sounds more like the spouse many would want to have.)

First, tell your husband he's a boob, because you're making more money on the $95 than you are on the $125.

We figured out one day that my time is valued at over $100 an hour, so if I spend 4 hours at a wedding reception, then I've just cost myself $400 in labor. I can pay a staff member $10 an hour to handle it and it only costs me $40.

My a la carte (or what we call our "Drop-n-Run") rate is $2.50/serving. Cake, delivery, set-up. THen it's all yours. My package price (cake,plates, forks, punch, cups, table linens, skirting, mints, nuts, delivery, setup, cake cutting/serving, clean up and tear down) is $5.50/serving.

Wow 125 for the 4th of July!! Thats one heck of a deal. I am shocked they asked for a lower price to be honest. i certainly think you should raise your prices.

my personal thoughts are you should tell her she's lucky to be getting you for $2 per serving. im in the process of starting my biz, and working out all the details. this lady is the exact reason why i've decided to make a minimum wedding order of 100 servings, and my min price is $2.50 per serving. that way, im always making at least $250 on any wedding. for any less its just not worth the hassle. the people who want to pay the least usually want to get the most from you. you don't want that kind of business.

I think you should go ahead and raise your prices some. People can always ask you for a discount just like this Bride did. I am sure she will tell her friends about your wilingness to accomodate.

Odessa,


I am all for it being ok for people to ask for a discount, but honey, a big wedding or even a traditional wedding cake is not a NEED......if they cannot afford to spend $125 then they can buy sheet cakes or something....

you sacrificing yourself (and your profit margin) is not going to single handedly save the economy and people will make their own decisions on what they can do financially...

Yes, more work is GOOD but not if you are selling yourself short. I say increase your prices and you could be making just as much if not more with one cake rather than mulitiple cakes.

I feel for ya!

I think you should raise your prices to at least $2.25 for buttercream. If you want to give a discount then you can bring it down to $1.95-2.00.

You offer way too much for what you are charging. The $125 was a great price for delivery and setup...that is all. A lot of decorators charge for staying to cut the cake (at least $100).

You need to do what feels right to you at this point since you are just building up your business.

Can someone help me with my dilema? I posted it under cake disasters..wrong icing put on cake. Too late to change it now, but should I let her know before I show up?

I'm not a pro, so take this for what it's worth, but I do other crafts as a business, and I ALWAYS give a discount to folks who send more orders my way. I DON'T give the new orders a discount, or the same price as the first one. That would be silly. But if this bride is sending you referrals already, have a firm price for those, but I wouldn't be above cutting her price just a little. You want to make sure you're still making money on the deal, and I agree that your cakes are too inexpensive... even the grocery stores around here charge more than that for a three tier cake.

But yeah... if I'm getting work from a current order, I'd give a bit of a discount. Just my opinion.

95$ for a 3 tier! too low...I wouldnt start negotiating your prices, you charge them for a reason. You wouldnt want the word to get out that people can haggle with you. If there are 50 people at that wedding im sure one of them is going to ask someone in the family how much youj paid for the cake and where they could get one. I only would reduce for very close friends and family and have them keep prices that they pay discreet if asked

I think you sound like you already made up your mind you just want to find someone who feels the same! I think you are right on about your prices and you ARE worth $5 a serving but is it worth losing the client.
Personally I offer discounts to clients who send referrals my way.. For example when i deliver their cake there is a business card attached that always reads " send a referral my way and recieve 15% off your next order".. we live in a small town and it takes only a few people to double my work by word of mouth..
Sick to your price of $2 a serving or higher to $3 and still give yourself permission to offer discounts without feeling shorted!
Hope that all makes sense! Good luck!

1ST - DO NOT DROP YOUR PRICE ON THIS CAKE.
2ND - GO UP ON YOUR BC CAKES AND WAY UP ON FONDANT.
3RD - ONLY YOU KNOW THE PRICES IN YOUR AREA. BE COMPETIVE WITH THEM, OR JUST A BIT UNDER THEM IF YOU WANT MORE ORDERS.

I PERSONALLY DO NOT DO ANY WEDDING CAKE (WITH THE EXCEPTION) OF FAMILY FOR UNDER $800.00. THATS WHERE I START AND WE GO UP FROM THERE.

I'M SURE YOU HAVE DONE THIS.....BUT FIGURE OUT WHAT A CAKE COST YOU TO MAKE. THE PRICE OF EACH EGG, OIL, SUGAR...EVERYTHING. NOW TRIPLE THAT COST. DIVIDE THAT BY THE HOURS YOU HAVE IN IT. COULD YOU MAKE MORE THAN THAT WORKING IN THE PUBLIC SECTOR.

IF YOUR CAKES ARE GOOD AND PRETTY THEY WILL PAY YOUR ASKING PRICE. GOOD LUCK AND KEEP BAKING.

I agree it is OK to give someone a discount but, there is a fine line between an act of kindness and being taken advantage of. Give this bride the discount but be FIRM with the referrals she is sending your way. Good Luck

I'm in southern Ohio & not a lot of money is being made around here, however I just raised my prices this year from $2.00 for buttercream to $2.50. One couple had their wedding last weekend at home so they could save money. But they paid my prices with no discount. The bride told me "You can cut costs a lot of places, but a wedding cake needs to be a wedding cake." She didn't even ask for a dsicount but I told her I'd deliver it (out of town) for free which she was very grateful for. I've found that once you start shooting for a higher market you get it. Obviously, however, not above what your market will take. I could never charge $5.00 per serving, for example, but I make sure I'm on the high end around here. That way I get the cream of the crop customers, not the rejects.

So far it has worked beautifully as I've NEVER had a difficult customer. Not one. It is the people who expect something for nothing that are the difficult ones.

All that being said, I still feel that if you want to give a customer a discount you should, but not necessarily just because they ask.

What three tier only serves 50???? are these single layers? or double layers?

A 10, 8, 6 double layer (the smallest I can imagine) would serve 74 according to Wilton.... So, that's $1.70 a serving. Are you providing the napkins for wrapping? the box for the midnight snack? and all the rest? My guess is that you are now (just for all the "extras" you give) now to $1.50 a serving (or even less)...

Or are your cakes even BIGGER? You can't price by how many she wants to serve if she orders something that serves way more. Two tiers would feed 50. if she wants three tiers, that's for HER to soak up the costs, not for YOU to do!

Or... are these all single layers? I'm confused where you got $2 a serving....

Melissa

My first thought was WOW.. delivery of a 3 tiered cake, set up, cutting services, packaging the top tier, AND a snack box for 125$???? That is a STEAL. For 95$.. that's highway robbery.. I think it's fine to give discounts if you want to, but don't give away your hard work. You also don't want to be known as the sucker who will lower her prices if you cry. I won't do a wedding cake for less than 3$ a slice.. and you will get plain buttercream and a border and not much more and I have a 50 serving minimum.. and this is just for the cake. For all that you do.. you should charge more.

Odessa-
I am by no means a professional, but I am familiar with the area and pricing! My husband grew up in Bad Axe! We even lived there for a year! Most, not all, people in this area of Michgan DO NOT spend money on cake (or anything else for that matter)! The area has been hard hit by lay offs, so I understand where you are coming from. I do believe you would be reasonable to raise your price, even in your area. There are clientele that would have no problem paying that price with your service given. (His sister and friends come to mind). Just my 2 cents!
Michele

Odessa-
I am by no means a professional, but I am familiar with the area and pricing! My husband grew up in Bad Axe! We even lived there for a year! Most, not all, people in this area of Michgan DO NOT spend money on cake (or anything else for that matter)! The area has been hard hit by lay offs, so I understand where you are coming from. I do believe you would be reasonable to raise your price, even in your area. There are clientele that would have no problem paying that price with your service given. (His sister and friends come to mind). Just my 2 cents!
Michele

I know in some areas you can't charge too much if there's no one to pay it, but you are definitely not charging enough. I charge $3.50 w/o fondant and $4.50 with plus delivery and setup. There are some places in my area less expensive and others more (Charm City, Sugarbakers, etc) That's fine with me. It's no skin off my back if someone goes elsewhere b/c they're cheaper. I gain nothing doing favors for strangers when it comes to pricing. I'm not willing to lose money because their budget is tight or they just want to be plain cheap. The price does not include anything other than the cake and the delivery charge. If they use a stand or want bags/boxes, knives, etc. That is all extra. If they want fresh flowers and expect me to provide them they pay cost plus a charge b/c I have to go and get them from the supplier. The only thing that I always forget to charge for is ribbon, but since that doesn't cost me much I don't worry about it. Extensive designs with handmade flowers cost more per tier. I'm in business to make money and enjoy what I do. I don't mean to sound so harsh. I'm really not a mean person, but business is business.
Your time and work is worth alot more than you are charging.