Questions About Wedding Cake Payments...and More
Business By melodyscakes Updated 16 Oct 2007 , 9:58pm by KoryAK
hello all!
I was wondering how you charge for your deposits? I am wondering what is the best way to do this.
right now I charge a non-refundable deposit of $100.00 and since $100.00 is easy enough for people to come up with I get my deposit fairly quick. the rest is due two weeks before the wedding date.
or should I
collect 1/2 the amount when they sign, even though that means taking credit cards and having to pay a % to the credit card company.
right now I have a small 2nd kitchen in my basement, yes FULLY Legal (yeah)
and because my business is out of my home and I have 4 children, I rent a small, and I mean very small office space from a friend and meet my clients there. my next step is getting a larger space.....which is exciting and scary at the same time.
I thought if I just charged the $100.00 deposit I could have next years wedding contracts as soon as I meet with the brides so that I know how much business I'll be doing next year...and can plan for that.
what would you guys do?
thanks,
melody
I used to do a $100 deposit for a long time... but after having about 12 cancellations last year (yeah, WTF TWO even on 7/7!) I realized thats not enough incentive for them to keep their order and not enough compensation to me for a last minute cancel. I now charge 30%. I have taken credit cards for years, but you certainly don't HAVE to just because you want a larger deposit. I have not had one person complain since I upped the amount.
I think it really depends on where you are located as well as what brides you are marketing.
Where I am $50 deposit is what everyone charges. Even the big la tee dah bakeries. But some place like NY city, it might be common to pay 50% of the total up front and brides expect it. I know that when I got married, if my baker said 50% now, I would have walked out. A reception hall doesn't ask for 50% deposit.
I guess you just have to weigh your options.
I get a 50% booking deposit of which a portion of it is refundable up to a certain point minus an inconvenience charge. That way I can afford to purchase any special order supplies and ingredients ahead of time (such as when I order fondant, it's in a large quantity in order to get it here with free shipping)...
Then on the tail end of the order... Because of hindsight being 20/20 
... Which this past weekend is when it bit me in the butt... I have a 28 day policy for using checks for the payment that the payment needs to be in. 27 days to 14 days, and it's cash only... At the 14 day mark if I haven't gotten the $$$, no cakey! This past weekend I delivered a cake that I had gotten the check at the 16 day mark because I didn't have time to schedule the meeting with the bride any earlier than that so because IMHO was my own fault I let slide... Well... After delivering the most gorgeous cake I've ever made to an incredibly posh reception site (think La Taa Da type location).. I got home to the NSF bounced check! I'm also guessing I didn't reply back to the bride in time before she left for her honeymoon so we'll see what happens. Needless to say it was a kick in the 
that from now on I don't budge on that 28 day rule!!!
The other thing is... By getting the payment 28 days out that gives you time to get the check to the bank before the other vendors get paid (lessening the likelihood of the NSF check), and it gives the bank the time needed to get the check back to you in time to still get ahold of the bride before they get married, move, change their name, and phone # not to mention that you get to hold their wedding cake over their head... For example, if I had opened my mail BEFORE I went to deliver the cake I could have carried the top half in and 
said "that'll be $$$ plus $$ for the NSF fee I was charged by the bank" or the rest of the cake is coming back with me! (I also accept Wedding gifts as colateral!)" plus most reception sites have ATM's now so that's also an option...
Just from someone that earned her stripe the hard way
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