I just got a request with this cake, but instead of roses on the top, she wants a royal icing tiara.
http://www.cakecentral.com/modules.php?name=gallery&file=displayimage&pid=527573
I quoted her $40 for the cake, $10 for tiara, so a total of $50. Is that fair?
Seems WAY too low to me........ a two tiered cake for $40? I would probably be charging $70 for that and an extra $20 for the tiara - those take forever to make.
I know, I was just thinking that she wouldn't go through with the order if I jacked up the price $20 for the tiara. I wish I could show you the original cake she sent-it had a gold painted crown on it. I told her $75 for that one, so she chose the other.
I quoted her $40 for the cake, $10 for tiara, so a total of $50. Is that fair?
He!! no!!! It is not fair to YOU! Depending on the size of the tiers, I'd get anywhere from $85 and up. Don't lower your prices to accomodate the budget buyers. You don't want a reputation as the 'cheap one'.
I quoted her $40 for the cake, $10 for tiara, so a total of $50. Is that fair?
He!! no!!! It is not fair to YOU! Depending on the size of the tiers, I'd get anywhere from $85 and up. Don't lower your prices to accomodate the budget buyers. You don't want a reputation as the 'cheap one'.
I completely agree!!! $40 maybe for one tier! That cake (for me) would be AT LEAST $80 BEFORE the royal icing tiara! You're way short-changing yourself!
Have you done a royal icing tiara before? I just made one for the first time and it took me 2 attempts and it was very time consuming. I think you're selling yourself short by only charging $50. I just sold my pillow cake with tiara for $120, the customer actually gave me $150 because she liked it so much. I suppose it depends on where you live too.
He!! no!!! It is not fair to YOU! Depending on the size of the tiers, I'd get anywhere from $85 and up. Don't lower your prices to accomodate the budget buyers. You don't want a reputation as the 'cheap one'.
OMG you are so right. Ugh, I just never know how much to charge! My husband always says that I underselll.
I'm not trying to be rude, but HOW can you make any money for $40/$50???
OK, let's say you make your fondant - that's what, $4 there, are you delivering it? add in the gas. A board to put it on? To cover it? now cake ingredients... and so on.
I figure I spend on ingredients/supplies alone on most cake $10 - $15. If it were fondant - $15 to $20... that's for a SINGLE cake, not two layers. I think all home bakers forget to think about the saran wrap and the food coloring and flavorings, etc. in their prices. NO WAY!!! I would charge a minimum of $100 and more like $125 for that cake.
Melissa
Well, last time I did that cake, it was MMF. And I told her that there was an additional charge for delivery, so that's a non issue now.
But for the cake board and stuff, I was going to talk to her about whether or not she wanted a decorated one, and charge extra for that (I already have the white cardboard ones, so that would be free).
But, WOW! I am surprised that everyone thinks that cake is worth so much!
No, it's not the cake that is valuable, but your TIME is. Would you work for free anywhere? Would you GIVE away money just to work at a bakery? that's what you are doing when you underprice. REALLY, count up how much this costs - the "Free" cardboard plate, isn't free - you paid for it. The electricity to run the oven, the dishwasher, everything.
Now... what does it cost? next, how much time will this take? If it's 3 hours TOTAL (including clean up time)... How much are you earning per hour (once you subtract the costs for the cake). I doubt this is 3 hours of work though... My "gut" is telling me that you are paying yourself less than $2 to $3 an hour. That's less than a babysitter costs per hour.
Melissa
take the total and divide it by the number of servings in that cake and tell me where would find that kind of deal on a slice of cake? no bakery or restaurant would sell that low. when i give a customer a price i break it down to a per serving rate too so they can see that i am being fair.
take the total and divide it by the number of servings in that cake and tell me where would find that kind of deal on a slice of cake? no bakery or restaurant would sell that low. when i give a customer a price i break it down to a per serving rate too so they can see that i am being fair.
This is true too... Just imagine paying only $1 for a dessert at a restaurant? (I don't know the size of this cake), but it surely serves about 50, right?
Reminds me, I was at our farmers market yesterday. An 8" tart was $20. A loaf of bread sells for $6 at the MINIMUM and people are waiting in line to buy from them!
melissa
When people balk at paying the prices of a custom cake ask them how much they pay for a dessert if they go to a restaurant. Usually they are around 5 buck per serving or more. Now granted those are huge portions but the point is the restaurant probably paid 8 bucks for the whole dessert then they cut it up into 8-10 portions so they can make a PROFIT!
That is exactly what you need to do. Make a PROFIT.....if they don't want to pay the price of your time and talents then WALK AWAY......it is no skin off your back...
What sizes are the cakes you are doing......a 6 in and a 4 inch???? maybe that for 50 bucks with a small....teeny tiara...\\
Don't ...and Quit selling yourself short...your worth more...
Well, here's the deal-it seems like every time I try to sell something for more, I get no response back! Half the time I am shocked that someone is actually calling me up to make them a cake, so I want to keep them hooked and not ask for too much $$$.
My husband is always telling me it is too low. A did a cake a couple of weeks ago where after it was all said and done I think I actually lost $5.00 on it.
But if you are trying to get established, how do you do it without scaring people off with high prices? I live in a suburb of Dallas, and it's upper middle class, but I think most people would rather just go to the grocery store bakery, and I have to compete against that. So I don't really know what the balance is of making enough $, but not scaring people away.
Well, you need to find your niche. I don't do that many cakes - yet. I'm building up my clientele slowly (no advertising yet). BUT... if people just want a cake to have cake, then they will and should go to the grocery store. But... if they want something special that they CAN'T get in a store, then they have to expect that it comes with a price. Custom ANYTHING comes with a price.
If you start low, you will never be able to get a higher price from that client. They will remember you as being cheap. Next time if you are higher, they'll just go looking for someone else cheap.
For me, I would rather make a cake or two a month and actually EARN money than make one every week and earn nothing.
I start at $45 for a double 8" with buttercream. NO ONE has balked yet. Now, I'm also in an expensive area and somewhat upscale, so going lower would be insane. Even then, I still earn very little for the hours that go into the cake. I spent like three hours making a FBCT because I had to mix 13 colors on top of MAKING the transfer... that's not counting baking and cleaning.
Melissa
berryblondeboys, you have a very good attitude. Thanks for the advice!
berryblondeboys, you have a very good attitude. Thanks for the advice!
LOL, Well, when you're married to an economist, you kind of have to be rational about how you spend your money and your time! He is coming around. At first he said it was a waste of my time and energy, but now he sees that maybe I can bring in a little money to help us in a pinch while doing something I like at the same time.
Melissa
well maybe you can tell them that it would normally be $150 but for her you'll do it for $100 (when you are currently doing $50) if you understand me. they think they are getting a deal but you still make a profit. honsetly though, do you really want those cheapskate customers? don't take their orders if they aren't willing to pay your price.
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