Well, as I am still new to pricing but, I KNOW that I am charging what I'm worth! But, I just called my local bakery to price an 8" and $16 is the answer!!! 
What! I think that is too low! How do they do business! I can't charge that much! I need at least double what my supplies are! Which for my 8" would be $23! That is a LOT more! I know that they are a bakery, they buy in bulk, they have people to clean (or just more employees) but, I AM ONLY ONE PERSON!! i CAN'T CHARGE THAT! 
So I feel bad but, I am going to charge my cousin $23. That is for the box, the board, all my supplies, my time....I have to charge what I'm worth! My mom said charge $20 but, then I'm not getting my supplies back from my board and such...This sucks! I hope she still wants it! Anyone else run into this problem??
Stephanie G.
Hey fellow wisconsinite! Yep, all the time..........the local bakery here is very similar, and I agree, I can't compete. If the customer wants a delicious cake, and are willing to pay for it, then you are in good shape, if you have those who check out all the prices in town, you could be in trouble. I hate it that Sam's can do a full sheet cake for $26, the local grocery store begins at $42, and the bakery in town does it for $50..........it really does suck! What do you charge for tiered or wedding cakes per slice? My local grocery store bakery charges $1.25 per slice........again, I can't compete.
I too can feel your pain. My local bakery is the same way. BUT!!....she uses "just add water" mixes and they are nasty!!!! People will order from her once and then never go back again!!
If someone has a problem with the prices I just explain to them nicely if you perfer to have a frozen cake that's been shipped to the store from god knows where then go right ahead over to Food Lion and get one, but if you want fresh baked to order cakes then come to me 
hate it that Sam's can do a full sheet cake for $26, the local grocery store begins at $42, and the bakery in town does it for $50..........it really does suck! What do you charge for tiered or wedding cakes per slice? My local grocery store bakery charges $1.25 per slice........again, I can't compete.
My bakery is cheaper for a sheet cake!! They start at $30! Where abouts do you live in WI?
I haven't done a wedding cake yet but, i am going to have to do some research on that! Those are so time consuming! and I have my first coming up next year!
So I charged her $22 and said if she couldn't do it then I would understand. But, I think she is so excited about the cake that she will still want it. I just always feel bad when it comes to that part and it's people I know! I am NOT saving them money! That's for sure!
f someone has a problem with the prices I just explain to them nicely if you perfer to have a frozen cake that's been shipped to the store from god knows where then go right ahead over to Food Lion and get one, but if you want fresh baked to order cakes then come to me Smile
If that were true about my bakery I would say the same thing!
BUT they are really good! Fresh baked and that's where everyone goes. I don't WANT to steal business from them...I just want to make cakes!
Step hun, the difference between you and that particular bakery ( I too have tried to convince my boss to raise prices on cakes) is that isn't their only product. Whereas that is your only product. They aren't relying on cake sales to pay the bills so that's why they aren't near as high. Basically he's charging just enough to cover costs (just like my boss, I am tryin my darndest to get him to see the big picture though). So don't worry bout the bakery. They are basically in it for selling pastries n donuts. You are in it for cakes. Make the best of this opportunity.
Step hun, the difference between you and that particular bakery ( I too have tried to convince my boss to raise prices on cakes) is that isn't their only product. Whereas that is your only product. They aren't relying on cake sales to pay the bills so that's why they aren't near as high. Basically he's charging just enough to cover costs (just like my boss, I am tryin my darndest to get him to see the big picture though). So don't worry bout the bakery. They are basically in it for selling pastries n donuts. You are in it for cakes. Make the best of this opportunity.
Thanks! That is some good advice! And you are totally right!
I guess that makes sense since they are probably spreading their supplies out for all those different products! Makes total sense!
Thanks again!
Steph - is their 8 inch cake a basic cake with basic decorations? Is yours? I doubt your cake is basic - I took a peek at your pics and they are all CUSTOM cakes. I bet the bakery would charge more - a lot more - if it is at all a custom cake. 
BTW - your cakes are great and you deserve to get paid for your talent. 
Well, mine are custom most of the time. My cousin wanted a monkey cake! I found this wonderful design by Sweet Cakes on CC this morning and she loved it! I will make the candles and border pink..the hat too!
http://www.cakecentral.com/cake-photo_73470.html
IMO:
It's discouraging when I see the prices and realize that I can't "compete". But then I remember that while I was managing a small retail bookstore a few (small few) customers would comment that they could get the book for half the price at Costco (or Sam's).
A few will always determine their purchase by comparing prices. The majority, though, prefer service, product knowledge, and quality. And they will pay for it.... even relatives!!
Thank you MissT for your compliments!
My Mom though that $16 was reasonable for the bakery cake but, when I told her my price she just didn't get it! I guess she doesn't know how to price either. I was telling her "I NEED to charge this much!" I am only one person doing the baking, watching the cake, cooling it, torting, making the frosting, not buying in bulk, original design. But she didn't even realize the cost of basic supplies! Plus I give everyone a nice cake board with a pretty design and paper with a ribbon cause IT'S LIKE MY GIFT! Even though someone is purchasing it from me it's my little touch! But, I still need to get my money's worth...and I do feel that way!
and custom is the key- it is limited what a bakery is going to do design wise you cant compete with them in price but.... they cant compete with you design wise- it isn't apples for apples
I can totally understand.... I had the opposite happen to me. I was asked to do a cake, but unfortunately, I know I'd be busy and had to turn down the job. It was for my sister(doing a church function).. and she informed me she'd call the local Sam's or Costo...and with that said I left is up to her. Well, needless to say.. she waited to late to order, called me, and I did it(simple decor..very pretty).
But here's the kicker.. she wanted 2 half sheets.. and called me the day before the event(meaning I had one day to do them), but when I told her my price $60($30 ea.), she says"wow.. i could have gone to Costo's or Sam's and paid much less for a full sheet cake" WELL YESS.. IF YOU'D JUST CALLED THEM IN TIME LIKE I SAID IN THE FIRST PLACE!! 
What I don't get it is.. how people think that it just takes no time to whip up a cake and decorate it... when actually..it takes me atleast 2-3wks to plan & schedule my time around what cakes that are needed at the time. And then.. to have you call at the last minute & complain about the price..hello..I'm doing you a favor!!! STILL A LIL HEATED.... sorry 
!!
I can totally understand.... I had the opposite happen to me. I was asked to do a cake, but unfortunately, I know I'd be busy and had to turn down the job. It was for my sister(doing a church function).. and she informed me she'd call the local Sam's or Costo...and with that said I left is up to her. Well, needless to say.. she waited to late to order, called me, and I did it(simple decor..very pretty).
But here's the kicker.. she wanted 2 half sheets.. and called me the day before the event(meaning I had one day to do them), but when I told her my price $60($30 ea.), she says"wow.. i could have gone to Costo's or Sam's and paid much less for a full sheet cake" WELL YESS.. IF YOU'D JUST CALLED THEM IN TIME LIKE I SAID IN THE FIRST PLACE!!
What I don't get it is.. how people think that it just takes no time to whip up a cake and decorate it... when actually..it takes me atleast 2-3wks to plan & schedule my time around what cakes that are needed at the time. And then.. to have you call at the last minute & complain about the price..hello..I'm doing you a favor!!! STILL A LIL HEATED.... sorry
!!
That is unfortunate that you had that happen to you, from your sister non the less. But, the fact that she wanted two sheet cakes for less than that is just ridiculous! Did you tell her how you felt? You should...she probably wouldn't do it again.
Some people just don't understand how much planning goes into making a cake! In this sense I was sending out an email last night for people to call me with orders! I had never sent one to my cousin! Duh! She has two kids! And now she wants one for October! Sometimes you can benefit from family! Other times it doesn't work out! Sorry it didn't for you!
Just to let everyone know you are all so great!
I just received an email back from my cousin and she was totally fine with the price! I knew it! But, what she said was even better!
"I would rather give my money to family than that bakery" Isn't that cool!
Make me feel so great!
Thanks again everyone!
Quite simply, you're not in competition with the bakery and grocery store bakeries in the first place. I know that seems absurd to most of you, because I see comments of that nature all throughout the boards all the time about 'I cant compete with' etc.
Well you're not.
Marketing 101- You're a niche market. You're selling to a different customer. A 100 dollar bottle of wine is not in competition with a gallon box/bag of wine- in terms of end user- lexus/honda, butcher shop/walmart meat dept. Lots of comparisons. Not the same market- dont worry about their prices, they're not competing with you and you're not competing with them (as in not to steal customers away. Peoiple who are shopping for a 16 dollar cake from the store wont pay 50 bucks for a custom made ones. And that is ok. Cause They never were your customer in the first place.
Quite simply, you're not in competition with the bakery and grocery store bakeries in the first place. I know that seems absurd to most of you, because I see comments of that nature all throughout the boards all the time about 'I cant compete with' etc.
Well you're not.
Marketing 101- You're a niche market. You're selling to a different customer. A 100 dollar bottle of wine is not in competition with a gallon box/bag of wine- in terms of end user- lexus/honda, butcher shop/walmart meat dept. Lots of comparisons. Not the same market- dont worry about their prices, they're not competing with you
and you're not competing with them (as in not to steal customers away. Peoiple who are shopping for a 16 dollar cake from the store wont pay 50 bucks for a custom made ones. And that is ok. Cause They never were your customer in the first place.
Great point! I will keep that in mind when talking to my customers! Thanks!
....So I charged her $22 and said if she couldn't do it then I would understand.
Do not apologize for your pricing.
Do not give out a price and immediately offer a disclaimer that sounds like "gosh darn gee I KNOW that's really high and I'm SO sorry so if you can't afford it, that's SO ok with me."
If you sound like you're not convinced they are worth it, then how can you expect your customer to be convinced they are worth it?
You are good at your craft.
Your cakes are worth it.
Period.
....So I charged her $22 and said if she couldn't do it then I would understand.
Do not apologize for your pricing.
Do not give out a price and immediately offer a disclaimer that sounds like "gosh darn gee I KNOW that's really high and I'm SO sorry so if you can't afford it, that's SO ok with me."
If you sound like you're not convinced they are worth it, then how can you expect your customer to be convinced they are worth it?
You are good at your craft.
Your cakes are worth it.
Period.
You are right! and normally I wouldn't do that! But, they don't have much and that's the only reason why I said it. I know that sounds like excuses but, that is what it is!
I won't be doing it again!
Thank indydebi!
OH, I TOTALLY KNOW how you feel! When I first started, I called a local bakery to see what they charge & it wasn't far from what you said yours charges! I thought I'd NEVER get business with them charging so low!
BUT...my minimum is $50 (for any cake) and I've had enough orders to keep me busy! (I just started selling in Feb/March)
So....don't worry about what your bakery is charging. YOU charge what you need to charge. And don't shortchange yourself. 
Dealing with family is always a bit difficult. I think they just assume since they are family your time isn't worth as much - oh contraire - your time is worth just as much for family as it would be for anyone else. Unless you offer up to make the cake, you should be able to charge whatever you see fit. I don't think $23 is too much for an 8" cake. Your mom was making you feel a bit guilty about it, but, as it turns out, your cousin was fine with the price. I'm doing an 8" cake for this weekend and charge $30, and I think that might even be a bit low for what it's going to entail. Yes, I want the business, but I'm not willing to give it away, ya know? If they don't like my price, I consider it a time for me to doing something else like reading, naps, stamping, whatever. LOL
You're doing great Steph - maybe have your mom come over and see what goes in to it - I bet she wouldn't say anything about your prices after that! Sorry - I'm evil, don't listen to me! 
There was a feature in our local paper about a girl who does cakes and she charges 15 dollars for most cakes and 20 dollars max. She is living in a very high spending area, and I know she isn't covering her costs. She said she is extremely busy (well, yeah, when you charge that little) but said she uses cake mixes and what sounds like the wilton frosting recipe (she named the ingredients). I am just waiting for someone to come to complain that my prices are too high...
You're doing great Steph - maybe have your mom come over and see what goes in to it - I bet she wouldn't say anything about your prices after that! Sorry - I'm evil, don't listen to me! Twisted Evil
You are totally right! My mom is that kind of fly by night cake decorator! She wouldn't even mind if someone called the day before something and asked her to make a cake! She'd do it! She does everything last minuet when it comes to cakes! She just throws them together and they always look good! It makes me soo mad! I was on the phone explaining to her the cost of each supply and then listing how much work goes into it like she didn't know! It WAS kinda strange for me But, after explaining she understood and said "well then, you charge what you need to charge!" It was just weird having to explain!
Thanks for all the input! I love discussing this kind of stuff with you guys!
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