Losing Customers Over Pricing Of Products.

Business By Chef_Mommy Updated 19 Jun 2007 , 3:37am by Janette

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twooten173 Posted 18 Jun 2007 , 11:46am
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Quote:
Originally Posted by MaisieBake

Most restaurants give you a table to sit at and bring the food to you and do the dishes. Do you?

As for consumers not understanding that going to the source = costing more, that's because that's not how it usually works.




In my mind we don't cost more. I don't charge anywhere near what you would pay for an Ace of Cakes cake - I'm not saying I'm that good. People are comparing apples to oranges. They need to understand that when they are asking for cakes that are way more than a standard sheet cake with some roses or some plastic decopak stuff thrown on top, they have to pay more. I would love to know what a standard bakery would charge for a specialty or sculpted cake.

I would think that all of these cakes shows would show them how much work can go into a cake. Granted you only watch the show for a hour max but these bakers are given six to eight hours (with their cakes already baked) to decorate them. Factor in baking time and they probably have eight to twelve hours in on that cake. I promise you they are charging more than $2 per slice!

That's just my two cents.

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purplebutterfly1234 Posted 18 Jun 2007 , 2:45pm
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indydebi,

Thank you! thumbs_up.gif

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Windsor Posted 18 Jun 2007 , 2:51pm
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I used to be like the clients who are turning you down. Until I went to Stop and Shop for my daughter's First birthday cake. I wanted Winnie the Pooh, that was the theme for her first year. I paid 60 dollars for a sheet cake in which you couldn't even read "Happy First Birthday Isabella" because the writing was that horrible, ever since then I decided if I have to pay 40 dollars more for the same cake only better quality I will. And then I thought, hey why not learn how to do it myself? So I did, You will get on your feet I garentee you. You just started out. Word of mouth is the best advertisement. So charge what you charge just don't charge as much as someone who owns an actually bakery. Then you show them up and the business will start coming in. Give it time.

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Kitagrl Posted 18 Jun 2007 , 4:44pm
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Some areas are harder to get what you are worth than others. Bigger cities its easier to find your target customer base.

It takes alot of time, I have found, to find the right group who wants YOUR cake at whatever you want to charge. What has to happen is you have to find a customer who wants you to make them a cool cake, and they are willing to pay for what they want.

In turn, they have a party full of people who say "Wow I want a cake like that" and they are also willing to pay what it takes to get what they want.

Over time, through word of mouth, you should get people trickling in that are going to pay what you want for your cakes (incidentally your work is quality stuff and I would NOT reduce your prices at all!).

I've lived in this area for about 5 years now (started in SC selling cakes to friends for very low prices) and it seems like although orders have trickled in, just this past year I have really gotten more notice and more people willing to pay more money for what I can provide. I still have work to do on my pricing I think, but for now its working out okay. However each time someone comes up with a more and more grand idea for a cake, sometimes I still have trouble figuring out how much to charge haha.

You'll get there...it takes awhile but soon you'll get a group of people who discover your talent and they will be faithfully ordering from you and telling their friends! thumbs_up.gif

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tyty Posted 18 Jun 2007 , 4:57pm
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I agree with indydebi, very well said. Stick to your prices and your business will pick up.

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Chef_Mommy Posted 18 Jun 2007 , 6:03pm
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Thanks again for all the replies and comments. As you all know it's the labor that cost money and people don't understand that. They just don't understand the amount of time, detail, frustrations, messes and everything that goes into these cakes. What I get upset about is they think since it's made in a house they can decide what they are going to pay rather than ask how much the cake is worth.

They want extraordinary cakes for costco prices , crazy people. I am going to continue charging what have been (which is cheap) and if they want it great if not... next.

I am working on a price list/ menu to post on my website.

Thanks again
Jackie

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tyty Posted 18 Jun 2007 , 6:12pm
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At a girl! icon_biggrin.gifthumbs_up.gif

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CoutureCake Posted 18 Jun 2007 , 7:06pm
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Quote:
Originally Posted by jmosquera

They want extraordinary cakes for costco prices , crazy people. I am going to continue charging what have been (which is cheap) and if they want it great if not... next.

I am working on a price list/ menu to post on my website.




One thought is don't list anything about prices on your website, it lets people shop with their budget first and not their palates. It also limits your flexibility in adjusting prices for the PITA and Gems customer factor. When selling food you want to sell them palate first, you second, and $$$ last. When I was in college in sales class, the biggest lesson is "The first person to mention cost and price is usually the one who will lose the negotiation." HOWEVER, the attitude you mentioned is KEY! thumbs_up.gif

I'll add to the previous poster's book recommendations...
1) "Selling Yourself to Others" by Kevin Hogan and Wil Horton
2) "Psychology of Persuasion" by Kevin Hogan
3) "Customer Service is Worthless: Customer Loyalty is Priceless" by Jeff Gitomer
4) Zig Ziglar's audio books on Sales (can't think of the titles, just know they were great car listens)..
If I had to pick the books off the shelf that have done the most in terms of marketing and sales (considering I've got a degree in it), those would be my absolute recommendations for reading.

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Kitagrl Posted 18 Jun 2007 , 7:27pm
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I see what you are saying...I actually list my prices on cakes I've already done on my website. I found it weeded out ALOT of wasted time emailing people who wanted quotes only to decide it was too expensive. This way they can see what they are getting into before they even email me.

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lillykaci1 Posted 18 Jun 2007 , 7:38pm
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I am finding that I have the same problems. People have bigs Ideas and not wanting to pay for the cake that they tell me they want. They think that because they know me or something that that should mean something. I have one guy that wants a batman cake. He wants two full sheet cakes with buildings made out of cake and batman and the batmobile on it. I told him how much it would be and he only wanted to pay me $200 and the thought that that was fair....NOT ON HIS LIFE!!!!!

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CakesbyMonica Posted 18 Jun 2007 , 7:42pm
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Quote:
Originally Posted by cocorum21

I'm not going to kill myself and stay up all night trying to get something just right for someone that doesn't want to pay me for my time.....end of story. Don't sell yourself short and don't feel bad because someone didn't buy your cake.




Thanks for that inspiration, cocorum, I am going to adopt that into my positive thinking when I stress about high cake prices.

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CakesbyMonica Posted 18 Jun 2007 , 7:49pm
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Quote:
Originally Posted by jmosquera

Thank you all for your responses.

It just makes me crazy when people want to make up there own prices icon_mad.gif

I just had a lady last night TELL me, not ask me, to charge her $50 for a cake for 40 people filled with fresh strawberries and bananas decoratated for a bridal shower. CRAZY???? She said "your making me want to call the bakery" I told her you can call the bakery then because I am not charging $50 for a cake like that, she was already getting a discount at $80.

I will stay strong and continue to do what I am doing. I will just be grateful for the customers I do have and not dwell on the on the people who don't order.



Thanks
Jackie





...let me get you their number....

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KayDay Posted 18 Jun 2007 , 7:54pm
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My two cents...Olive garden also isn't doing sugar work on these cakes and stacking and dowelling etc. This is one of the reasons I am more and more only doing weddings and kinda spreading the word that ( and I know it sounds snobbish...but oh, well) that if you are going to quibble over a few dollars you probably dont want to use me. I am sorry but unless it's the occasional Quince or sweet 16....or other milestone or anniversary...people (most not all) just arent willing to pay what we are worth! Occasionally I wil have someone who just wants to make a birthday EXTRA special...and has a theme or something they cant get elsewhere and willing to pay ....but not often in my experience.

I know we cant all specialize in weddings but it was my only option. Plus it is what I love. Looking at your photos I see lovely work. But lots of other event cakes...maybe target the weddings a little more?

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peacockplace Posted 18 Jun 2007 , 9:06pm
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I am totally looking forward to listing "cakes starting at $3.00 a serving" on my website. If that's ok with them, then they'll contact me, if it doesn't fit their budget... they'll know to look elsewhere.

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indydebi Posted 19 Jun 2007 , 1:57am
post #45 of 50
Quote:
Originally Posted by Kitagrl

I see what you are saying...I actually list my prices on cakes I've already done on my website. I found it weeded out ALOT of wasted time emailing people who wanted quotes only to decide it was too expensive. This way they can see what they are getting into before they even email me.




BINGO!!!!!!! That's what brides are telling me and why they love my website. They are surfing the 'net for information and they want pricing information. They tell me if there are no prices on the website, they are clicking out and moving to the next one.

I may love a Ruth Chris steak and I may drool over the photo and the idea of it, but if it's not in my budget, then I'm not going to dinner there.

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Kitagrl Posted 19 Jun 2007 , 2:12am
post #46 of 50
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by Kitagrl

I see what you are saying...I actually list my prices on cakes I've already done on my website. I found it weeded out ALOT of wasted time emailing people who wanted quotes only to decide it was too expensive. This way they can see what they are getting into before they even email me.



BINGO!!!!!!! That's what brides are telling me and why they love my website. They are surfing the 'net for information and they want pricing information. They tell me if there are no prices on the website, they are clicking out and moving to the next one.

I may love a Ruth Chris steak and I may drool over the photo and the idea of it, but if it's not in my budget, then I'm not going to dinner there.




Right...usually if I don't see a price I assume its out of my budget anyway. At times I may email out of curiosity...but then that wastes that person's time replying back.

I have truly had alot less inquiries since I listed pricing... and more of my inquiries end up as serious cake orders than they did before, because most people only email if they really want a cake.

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snarkybaker Posted 19 Jun 2007 , 2:51am
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I think we are talking about two different types of customers. When your motto/slogan includes the fact that you're not expensive, then you better have prices available.

My shop window will have " Artisanal New World Desserts" in the window. No one walks into our restaurant or will walk into my shop expecting to pay Walmart prices. Price is usually the last thing that brides ask me, if at all. They want to know can I make passion fruit mousse or can I make a 5 tier cake. When I tell them they can have whatever they want, that I don't need a final number until 10 days before the wedding, and that I only charge for the number of guests they have, not they number of servings I make, so there is always a little extra, they know that I am fair in my pricing.

Charge what you are worth. I was just at a seminar for dessert marketing led by a PhD whose studied the field for over 10 years, and she said that you'll never get 100% of your neighbors to be your customers. Shoot for 10%. If you are selling a luxury product 10% of the market will make you rich.

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peacockplace Posted 19 Jun 2007 , 3:12am
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txkat, I was just wondering how you do a wedding cake with passion fruit filling. Doesn't that have to be refrigerated? Sounds wonderful!

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snarkybaker Posted 19 Jun 2007 , 3:25am
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Curds, which are very high in sugar, can safely be left out up to two days. I also make alot of cakes with IMBC and fresh flowers. ( Our restaurant has a lovely garden so we get a lot of "garden"y" weddings and cakes" and those I can make a fruit mousse and keep it in the cooler, just add extra gelatin to make sure it holds up to the weight of a tiered cake.

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Janette Posted 19 Jun 2007 , 3:37am
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It's hard. But, I've come to accept it and not take personally.

My cakes are fresh, I use only the best ingredients they are made the way the customer wants. Their guest will be impressed.

If they want to go to Walmart's I can only shake my head. It will not be unique and they will be getting a frozen cake.

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