How Do I Tell My Friend I Need More Money!!! (Long)
Decorating By springlakecake Updated 13 Nov 2006 , 2:41pm by formerbuckeye
Okay so I recently started doing cakes and my neighbor was the first one to start paying me for them. I have done several for her since the spring. (I havent had too many other paying orders yet) Anyway I didnt really know what to charge her in the beginning since I was still wanting to do them for practice and she is a friend who also does nice things for me. So I told her to just pay me whatever she thought was fair. So she gave me $15 for an 8 inch round with fillings. You know it costs me around $5-10 for supplies and somewhere between 3-5 hours of work. So I certainly dont make any money on it. At first this wasnt a big deal for me as I looked for excuses to make the cakes. Now I feel myself sort of resenting the fact that I am spending all of my free time on this for $5 in profit. Like Thursday night she asked me to make one for sunday (her mom was really the one ordering). I already had quite a few plans for the weekend, but i agreed. So I spend all of the free time I had, neglecting my childrenand husband and the house cleaning for $8 profit. AND it is my friend ordering for her MOM. So now her mom gets the discount too?? I just dont know how to tell her that I need more money in order to do these cakes! I have tried hinting around that it takes me a long time to do these..blah blah. But she never really asks how long or how much the ingredients cost because I think she really doesnt want to know so she wont feel guilty taking advantage of me. Dont get me wrong she is a super nice person, and I wouldnd mind throwing in a free or discount cake once in awhile. But this is too much. I need ideas...
Here are a couple of cakes i have done for her recently so you can see my work. How much do you think they are worth?
edited to say...these are probably my NICER ones for her though..
i would make a price list and then just give it to her. Those both look like they took alot of time. I am the worst at freebies, I give away to everyone!!! I think you have to say something unless your getting alot of business from her. I would just let her know that from now on your fee will be (blank) and charge her what you will be comfortable with. Do it over the phone if your chicken!!! I would hahaha
Maybe tell her that now you are better at cakes and have figured how long it takes you, what ingredients cost, etc you have developed a price list. You could also tell her that you are trying to turn this into a buisness so you need to be making a profit, the money she's been paying you probably doesn't cover electricity and everything. To soften the blow tell her that cakes for HER will have a discount but that when she orders for someone else you can't give her the discount. Make sure she knows that fillings and elaborate work cost more than your base pricing.
I agree with the others. It is definitely worth more than $15! And I usually err on the cheap side with my cakes, too! I would tell her that "My expenses in making the cakes are rising, and that I'm sorry, but my prices will be changing to reflect that increase!"
I'd hate to do it! But it's true! Look at your grocery bill, gas, electricity, all of these things are getting more expensive. I am right now in the process of refiguring my prices and letting my customers know that some of my prices will be changing as of the New Year. That way they know what to expect!
I would venture a guess that she knows she's getting a steal, and will not be all that surprised by the increased cost. She's paying you bottom dollar, WalMart prices for a top-of-the-line cake!
I don't want to offend, but the $5 profit is not a profit--you are still taking a loss. You have to pay yourself for the work you do on your cakes too. It sounds like she is telling her friends and getting cakes for them through her because of the great price. I have had to tell a friend that this was a good deal this time, but my prices are going to go up since this is practice. No one has been offended by that--they understand. They know they can go to the store and buy a dry unflavored poorly decorated cake for a little less, but they know which is the better deal!
I know this has to be done but I am such a chicken!! I did a cake for someone else last weekend and I told her what the REAL price was going to be, and i wasnt scared at all ( I ended up giving her a discount too...for another reason) but at least she knows for next time how much it will cost. Of course when I dropped off this particular cake they are searching around for money and the husband goes..." hmmm all I have is hundreds 
" No more discounts for them!!! But as I was leaving he said "no more breaks on the cakes" Agreed.
I know this is always an awkward subject, and I have always had trouble with it. But you just have to suck it up and say.....
My husband says if I am going to neglect my family and house ect I have to at least make a little money or I can't do as many anymore.
MY DH he is used to me making him the bad guy in uncomfortable situations but we have an agreement and he sometimes uses me to get out of stuff!! So I guess we are equal
okay so do you think about $30 for a 8 inch cake sounds fair? This would be with full decorations and fillings. I figure about $2 a serving? I was thinking of charging based on a completely decorated cake. I would adjust the price down if someone just wanted something simple, no filling etc. Or up if really elaborate So my thoughts were
$20 for 6 inch
$30 for 8 inch
$45 for 10 inch
?? for 12 inch maybe $60?
What do you think?
I know this is always an awkward subject, and I have always had trouble with it. But you just have to suck it up and say.....
My husband says if I am going to neglect my family and house ect I have to at least make a little money or I can't do as many anymore.
MY DH he is used to me making him the bad guy in uncomfortable situations but we have an agreement and he sometimes uses me to get out of stuff!! So I guess we are equal
You know what? That is a great idea. I think I just might say that next time that she asks for one. Thanks!
WOW your cakes are beautiful, and worth way more than $15. I wouldn't know how to handle it either. The other ladies had a some great ideas tho.
Actually the flowers are royal. The top one is mmf. Actually now that I think about it the one with fondant I did as a gift for her birthday. But it is still something I would have done for her if she ordered it. or maybe I will just tell her if she still wants them for $15, they will just have to be really simple without the more expensive ingredients or fillings.
You could wait until she orders her next cake and just tell her that as your supplies are getting more expensive and you are putting more time into these cakes, that you have developed a price list and need to be paid accordingly. Give her the price list. She may choose not to order from you in the future and you'll have to be prepared for that - your quality of work is amazing and she may just be cheap.....
Good luck with it all! If she calls to order, you could also just tell her, "The price for that will be ____" -do you still want it? I can't afford to do it for so cheaply anymore....
HTH
Your cake are beautiful! She must know she's getting a really good deal, so she will keep on asking.
Next time you see her, you could say you've been lucky enough to get a few cake orders coming in, and people asking what you charge so you've had to do a price list of your cakes to start handing out - would she like one? Especially if you keep chatting about how excited you are that you've more orders coming in, she may well then accept you have to have a price list.
You may well find that she will still order from you as your cakes taste and look really good.
Just go for it!! 
cheers
Jan
Just popping in to say that your cakes are beautiful and to add my 2 cents...I see that you had down $20 for a 6-inch. My own policy is that I have a $30 minimum, even for a 6-inch. A 6-inch cake still takes "a batch" of cake batter and icing, and takes just about as much time to shop for, bake, cool, and decorate as an 8-inch. It's really not worth my time to do all that for $20. Just a thought for you!
I have to agree with kelleym, especially if you are going to do basket weave. People don't realize how much work that little technique takes! Sure, it's simple enough, but that's where a LOT of your time is going!
As for your friend, if she really is your friend dhe will understand that you can't just keep giving your cakes away. Tell her that you'd be happy to give HER a discount, but she can not order cakes for friends and family.
Hi,
Your cakes are worth way more than that! I love that first one! Are those buutercream flowers or gumpaste?
My sister-in-law and I just started a little side business, we checked our prices in our area and put ours a little under those.
I have just finished 2, 8" choclate cakes, with choclate IMB and decorated with choclate maple leaves and little fondant pumpkins/pears/apples. I charged $40 for these. Basicly, we charge $2.00 a serving for buttercream and an 8" is supposed to feed 20 people. (Unless it's for a wedding when it will serve 24 people, therfore be more expensive for the same cake because you charge for 4 more serivngs.)
I usually charge extra for extra decorating outside of basic buttercream, so I **should** have charged more for the chocolate leaves, but didn't for no reason other then I was having a brain fart when I was taking the order.
Does that help?
I would explain to your friend how much time and supplies go into each cake and tell her from now on you have new prices to maek it worth your while!
-Ivy
Your cakes are beautiful. That happened to me and I let my friend know that now I am much better and I am starting to sell alot I have made up a price list and I gave it to her and she was ok with it. She has ordered from me after that so maybe your neighbor will understand also. Don't cut yourself short. Those cakes are worth more than $15.00.
Keep up the good work!
You are very talented! I would definitely charge more. I am trying to make a price list for myself, so I know it's tough to do! I do most of my cakes for friends and samily, and my husband hates it because I always undercharge. Good luck!
like everyone has said your cakes are wort way more than what you are charging.
i used to find excuse to make cakes too, actually I still do.. I make them for my house! If someone wants a cake I just tell them how much it will be and let them decide.. I don't barter or anything.. (and of course I am probably lower than I should be)
my mom called me from her church yesterday and ask me about 4 half sheet cakes. I suggested a whole and a half (like I really want to do a whole sheet cake). then i told her the cost and the lady who had ask my mom, said oh our budget won't allow for that.. u know what I said? "o.k, thank you" and got off the phone LOL
Your cakes are great. If she is truely a friend she will understand when you explain it to her. Your family always should come first so when they don't you should be compensated for it.
I know what you mean. For me, it's the clean up time that actually "costs". I think I would print up a very elegant price list that includes a base cost for just a cake--and then list add-ons like flowers, basketweave, etc. Show it to her and ask her what she thinks. Treat it like you value her opinion since she was your first customer. Then tell her of course you'll get a $5.00 discount on your orders--or something like that. Let her keep the price list so that she will never have to "wonder" how much something is. She will either keep ordering and pay the price--or she will stop ordering. Regardless, you won't have to worry about price with her. And, if nothing else, you'll have an established price list to show other potential customers.
Good Luck.
J.
Your cakes are beautiful. I love your flowers!
Hi everyone! I am new to this site, but definitely not new to decorating. I have been in business for 12 years. I understand this problem as I had the same thing happen years ago. It is very hard to say the words "the price is $___." Believe it or not....I practiced saying that. I would say it with conviction and say no more. At that point the customer had the opportunity to say that they aren't willing to pay that much. I would then say "I understand. Thank you for your consideration and please keep me in mind perhaps for another occasion." 
This has worked well for me and most times the customer will come back to me. Afterall, they are getting what they want. I have a long list of clients and have had maybe two who have not been repeat customers! Gotta like that! I especially like what kelleym had to say.
BTW, I love this place. I am very anxious to post some pictures. You are all very inspirational and creative.
Hi,
Your cakes are worth way more than that! I love that first one! Are those buutercream flowers or gumpaste?
My sister-in-law and I just started a little side business, we checked our prices in our area and put ours a little under those.
I have just finished 2, 8" choclate cakes, with choclate IMB and decorated with choclate maple leaves and little fondant pumpkins/pears/apples. I charged $40 for these.
Thank you everyone-The flowers are royal icing. I havent yet made fondant flowers. I'd like to at some point. Luvscakes-Did you charge $40 each for the cakes or total? Is it the one in your gallery? I love the chocolate leaves.
those cakes are stunning she is ripping you off and a friend would not take advantage of you that way. Im dealing with this same thing so I dont know if i can give the best advice but I would let her know that in the beginging you were happy to have the practice but now your trying to start a legitimate buisness and while you dont mind doing the occasional discounted cake for her you would apperciate that if a friend or family wanted a cake done that she just pass along your number and not mention that she gets hers at a discounted price. also it seems a little crude but show her your reciets on how much you spend and tell her i usually charge x amount for my work and if she still doesnt get the hint and you dont want to flat out tell her to pay more just find suttle ways to deny her request for cakes maybe she will get the hint that way. 
Some people think that creating a cake (or any art form) is the hardest part. To me understanding the worth is the hardest. It is easy to pay out for items that we feel have value but it is so hard for me (at least) to say "My work is worth...xyz" with confidence. Do you think it was the way girls were taught to be...don't ask for what you want? Not sure, but it does not matter if you are a beginner or a super star pro...if you have quality product and spend time ...you deserve $$$.
p.s. your royal icing flowers are stunning!
I was always the designated cake baker at work for all those no- special-occasion- needed parties! As I began to decorate more and wanted to turn this into a business, it was hard to find a way to tell my friends that I couldn't keep making cakes all the time! I was even being asked to make personal cakes for friends' parties, sometimes they would pay me $10 or $15, sometimes $0, and at first that was OK because it was good practice. But to get out of this cycle, I made up a booklet of cake sizes, flavors etc. with the prices, and in between cake requests I made the booklet available to everyone and told them that "this is now a business for me, not just a hobby and that I would appreciate any business they could refer to me". It worked! And I was really chicken about it! I was afraid of offending people, and instead they have all been my biggest supporters. Give your friend the same chance- I'm sure she'll understand and continue to buy cakes from you because YOUR CAKES ROCK!
Well thanks everyone for the advice. The last thing I want to do is be resentful, when it really isnt her fault. I just havent spoken up. I think I am beyond the "doing cakes for practice" now, so I think next time she brings up cake or orders I will just have to say I will be charging x amount for this cake and I understand if you would rather purchase it somewhere else, but I just cant do it for 15 anymore. No apologies. Hopefully I dont loose practically my only customer, but if I do I will focus on advertising to the fancier neighborhood down the street.
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