Hi,
I'm a new small operation for cake decorating and was wondering if anyone could give me an idea of how you charge cakes. I saw Alices Matrix but seemed a little more detailed than I want to get. Also, I feel like I'm way undercharging. I'm new I feel like I can't charge what I think they are worth. And I'm bad about asking for the price I want. In fact, I feel bad asking for anything above $30.
PS - I only have done cakes for birthdays and baptism - no weddings yet.
HELP!
It's hard to know for sure. I started by doing alot of researcj on line for area bakeries, my town and the surrounding ones. Many had their prices right on their website. The ones that didn't have prices usually looked like they would be higher priced (I'm basing that on the # of cakes on their site and the quality). And truthfully, I figured they wouldn't be my competition. People financially able to pay those prices probably wouldn't take their chance with somebody like me that has a much smaller portfolio. So, I took the average base price, which in my area seems to be around 2.50-3.50 a serving. And I priced below at 2.00 a serving. I think it's fair because I'm just starting out (well, starting over...it's been years since I was doing cakes for $). The last 3 Brides I sent my info. to couldn't believe how inexpensive I was. One booked immediately and the others are coming for a tasting. My problem is having confidence in what I do. Some times I think "wow, I can really do this" and other times I feel like I'm such a beginner (eventhough I know I'm not). I think once I get back into the swing of doing the cakes for $ (I do a million for free for my family) I'll boost my price up. But, for now that has worked for me. Be honest with your customers that you are working on building your portfolio or just starting out. Then charge accordingly. Good luck. Feel free to pm me if you have any other questions. We are kinda in this "starting out" stage together!
The ones that didn't have prices usually looked like they would be higher priced
Thanks for posting this observation ..... it's what my brides tell me when they come across a website with no pricing posted. They assume it's expensive and they move on.
------------------------------------
If you are going to do this as a business, the first thing you need to do is get rid of the "oh gosh darn gee I just HATE charging more than $30!" feeling. It's business. You are not in business to try to be friends with everyone .... you are not here to worry about hurting their feelings with a "high" price. It's business. And your price has to cover the rent and expenses. It's like you're deciding how much they can afford ..... which is not your decision to make. People will pay more than you think for a good tasting, well decorated cake creation.
Researching the area is a good first step .... walmart and grocery store bakeries do not count.
Quote by @%username% on %date%
%body%