I was just wondering if you all ever explain your pricing or should I say defend your pricing of your cakes. I had a lady who was interested in having me make a babyshower cake for her and if all went well then she was going to consider having me make her wedding cake in June. Well after I gave her a price quote she sent me an email saying that she was SHOCKED at the price and thanks but no thanks. She wanted a baby shower cake for 50 people and I quoted her at $2.50 a person. She said - FOR A BABYSHOWER CAKE???!!!??? - I just said well thank you for your interest in my cakes and good luck with everything. But that was after I had typed an email telling her that she's not going to find much cheaper for her wedding cake and if she liked old dry premade store cakes that they just grab off the shelves and slap some icing on then that's what she would get for less then mine. And how my cakes take time and each one is unique to the person it's made for. But of course after I rambled on about it I deleted it and just said Thank you for your inquirey!! lol The baby shower cake was going to be two stacked cakes with two different flavors done with the clothes line theme that's seen on here a lot. Oh, and I guess the other kicker as to why she was shocked is that - she doesn't even like or eat cake!! lol So I can see why it could be a shock to her when she could go and get a slab sheet cake for that many people for $65 at the local grocery store. But the other thing is that she does catering on the side so I would assume that she would know what these things cost. She said if all had went well with her cakes she was going to use me for a cake contact for her catering clients. (Guess that's out of the question!!LOL)
So I guess my question is - do I explain my pricing or just say Thank you and let it go. It didn't bother me that she responded that way but I felt like I needed to explain my pricing in further detail so she understood exactly why - but her response to me was so short and a little snippy that I just decided to say just Thank You!!!
Just wanted to see how everyone else handles situations like this.
thanks guys!
Brandie
I do what you did.....write it all out and then delete it! You feel better and then you didn't offend anyone. Smart choice.
No, I wouldn't defend your pricing. I don't sell cakes anymore (was just a fun thing for me, not professional), but stick to your guns. People want a lot for nothing now, and don't back down. You won't forgive yourself for it and they won't appreciate it any more for it!
Hey Brandie,
I live on the other side of the bay bridge from ya 
. I would say if this were me, I would send her a nice message just explaining that your costs are higher then the chain stores because you offer a freshly made product that is made within 48 hours of the said event. Then you could maybe explain to her that the grocery stores pre-order their slab cakes from a factory and freeze them until ordered and then thaw them and ice them with a bucket of icing that's been sitting on the shelf or floor for god knows how long and all of your products are freshly made to order, and that nothing sits for longer then the duration of each order. I'd also explain to her that she is being quoted for a teired cake and not just one but two and they take more time to be constructed and she won't find anything like that at the grocery store or at walmart or sam's or wherever. You don't have to explain yourself or your prices but if you feel you should then go for it. You make great cakes and have the right to charge accordingly. If she doesn't agree with that then it's better to not have her as a customer 
Becky
Brandie,
I don't personally sell the cakes I make. I make so few anyway (college classes) but I see no reason what so ever that you should go into depth explaining about your prices. I would probably tell the client that the cakes I make are fresh and are make exclusively for them but that would be it. Just my opinion.
Charlotte
In most cases, there would be no need to explain. However, this is a little bit different, since you want her as a cake contact.
IF IT WERE ME, I would explain that my cakes are custom made, baked fresh, and are a specialty item. The prices will not compare to grocery store cakes as that is not the type of cakes you provide. Also, regardless of the event the cake is for, your cakes are the same high quality and design, so your prices reflect that. Perhaps you are not a good fit for all or even most of her clients, but you can create what is needed for the "discriminating" (high-end) clients and their celebratory needs.
what you did was right, no explanation is needed, just thank her and hope that she will consider contacting you for any future events that need a custom cake. That will also keep your contact open with her and her catering business.
Thanks guys- you all were right in the same line as my thinking. I just wanted her to know that since she isn't a "cake eating" person that there are reasons behind my prices. But I didn't want to come across as being on the attack. There is a woman that she works with who is now a repeat customer and doesn't even bat and eye at what I quote her b/c she knows my cakes and the way they taste and appriciates the personal attention and freshness. But I understand that to some people cake is cake and they don't care about the taste or look but just about the price and that's fine by me. I just figured since she was in the catering business she might have an idea about costs. But it is what it is and it's fine.
Zmama- I think that would be a good idea to let her know if she does run across a client who is looking for something more along the specialty line to give them my number - hey, it can't hurt.
thanks againg guys for your help!
It's a little iffy depending on the person - if it's for someone w/ catering who is offering a possible contract, I might go into a little more detail. If it's a one time customer who seems like more trouble than their worth - I'd just thank them for inquiring. You can always do just a short little paragraph saying, "thank you for your inquiry. ______ makes custom one-of-a-kind cakes with the freshest of ingredients and we pride ourselves on the quality of our product. We would be happy to try and work within your budget, but depending on the budget, your choices of design/flavor/filling/size may be limited. We would be happy to discuss this further with you if you are still interested".
I just made a cake for a friend of my mom's - the tank cake in my photos - and I didn't really discuss pricing w/ her beforehand - I asked her budget and she said whatever. After I calculated how much it cost me to make the cake I felt kinda bad b/c it cost more than the wedding cake I had made her previously (also in my photos) - mostly b/c I used fondant - and we didn't really discuss it before but I didn't think I could make the tank look as good without it.... so what I ended up doing is sending her the amount it cost me for ingredients - I said it came to around $65.00 - and then I told her to decide what she felt my time was worth - and told her it took me about 8 hours to make. She said she would send a check and I guess I'll see then what she pays me - but I doubt she'll just pay $65.
Anyway, I think if someone says they are "shocked" - you could do a little rundown for them of the costs - you could go into detail if you like showing them cost of flour, eggs, etc.... cake board, foil, etc. and then tell them your hourly rate.... show them where the costs come in and they may understand more. However, I wouldn't go to this much trouble for just anyone - unless I made up the e-mail and just copied & pasted for every and anyone that came along Good luck. Sometimes those not willing to pay the price aren't worth the trouble.
imartsy - one thing we (myself especially) need to do is figure out how much time we can afford to spend on a cake. If we price for 4 hours, they get a 4 hour cake, not a 12 hour cake. No one gets cheated but ourselves I think what you did on your cake was smart - for those customers that can be trusted. Good luck on getting what you are worth!
Okay guys, to me it seems that this person was only trying to use the "future business" (i.e. her catering contacts) as leverage to scare you into doing it cheaper..... If she does ANY catering at all, she knows what a cake costs, whether she eats it or not.
Don't defend your pricing, what you have already emailed her is fine and I wouldn't send another as it is beating a dead horse. She said her peace, you said yours. I only "defend," so to speak, my price when they are inquiring. With the original quote I tell them what they get, and how great a deal it is because X...Y...Z... That's just me, and I'm not in the cake business, but that is how I deal with clients, I let them know right off that I'm not the cheapest, but I'm the best deal...
Oh I am sooo glad this thread came up!! I had the (almost) exact same problem about a month or so ago!! My hubby is a handyman and he gives my card to one of his clients. She calls me, says they are having a bridal shower for 50 in March and wants me to do the cake. First question out of her mouth "How much is this going to cost me?" My answer "for special occasion cakes (not weddings) my prices start at $2.50/slice for buttercream. Since you know my husband I can give you a discount to $2.00/slice. Fondant and gumpaste, of course, are more expensive." Then she says "but the ladies want small slices of cake, they're all on diets." I told her she was already getting a discount and a cake for 50 is still a big cake. She didn't say anything. Then she asks me "what will the cake look like?" I told her I would be happy to sit down with her and look at pictures and incorporate her ideas in the cake, but I don't know offhand what the cake will look like because I haven't designed it yet. So she tells me she is having a meeting with the other women putting the shower on and would call me one way or another. Guess what? I never heard from her!!! Of course hubby got an earful -- "doesn't she know I'm not a bakery where she can just come in and pick up any old cake? I do custom work... blah blah blah..." He understood and said it didn't sound like her. My first thought was to say to him "tell her this... ask her that..." but I thought "no, I'm not putting him in the middle of this. It's not his fault."
I don't know, I do custom cakes and charge big $$ for them and granted I get fewer commissions, but I love the ones I get and I don't get overwhelmed this way. I've also found that the commissions I get where they want something for Bob's birthday and don't want to pay a lot, they are uncomfortable with la-de-da stuff on a cake (like I like to do), so in my opinion they are better off going to Sam's Club or Krogers. What do y'all think?
This very same thing happend to me at a New Years Eve party. A FRIEND, who was at my son's birthday party last month, asked me to make a cake for her daughter's birthday. Cool, right? We designed out the cake and she says, "so what will this run?" I said $65. She said, "oh, I only wanted to spend $35". 
This was a two teir Bratz cake with jeweled topper! My reply was simply this "then you better go to Walmart". I had drank an entire bottle of wine and my mood was quite mellow, normally, especially with a friend, I hit the road about fresh, quality ingredients, custom made, ect. I think I liked my drunk response better..."then you better go to Walmart". 
This very same thing happend to me at a New Years Eve party. A FRIEND, who was at my son's birthday party last month, asked me to make a cake for her daughter's birthday. Cool, right? We designed out the cake and she says, "so what will this run?" I said $65. She said, "oh, I only wanted to spend $35".
This was a two teir Bratz cake with jeweled topper! My reply was simply this "then you better go to Walmart". I had drank an entire bottle of wine and my mood was quite mellow, normally, especially with a friend, I hit the road about fresh, quality ingredients, custom made, ect. I think I liked my drunk response better..."then you better go to Walmart".
ha ha ha ha ha ha ha ha!!!! 
That's the best response I've heard yet!!!
Yea, I thought that since she does catering "on the side" that she would know/understand the cost of things. But since she "isn't a cake eater" (lol) then I gave her the benefit of the doubt. She works with my boyfriend and has seen a lot of my cakes but I guess she just doesn't get it. I just got the feeling that this one is just left better enough alone. I don't have any hurt feelings about it but sometimes the people I know who don't "get it" as far as the time and money that goes into my cake need a little explanation. But as for this lady - I don't think it would matter either way so I'm not going to waste my breath. I just face the fact that a lot of people want a lot for nothing!! My boyfriend thought I was underpricing her and told her so! LOL - he's like that - he works with her so he can say stuff like that to her I guess! lol He thinks I undercharge all the time - He's more of the business type, down and dirty salesman. I just make the cakes! lol - but he's right - I can't underprice myself just for the sake of a sale. I will get the customers who are willing to pay and appriciate a fresh custom cake and I am fine with that! I always tend to under quote a cake or make more then I should for the amount of servings they need b/c I feel bad. WHY???!??!?! If they want it they will come, if not then so be it! I put a lot of time into each cake and I don't want to make a cake that isn't appriciated. (Well I guess if they are willing to pay the price what do I care if they appriciate it! lol ) but you know what I mean. You get what you pay for!
And SweetConfectionsChef - you said exactly what I was thinking - hmmm maybe I should have a drink or two before dealing with potential clients!! lol
Bturpin you said it, some people are more interested in cost rather then taste, but you know what the guest are the ones who talk about the cake, and from parties that people have gone to where the host gets the cheap walmart cake, people have told me i only went because i thought you were making the cake the first time i ever got passed on because of price is the one i will never forget, it was my cousins graduation party and she wanted me to make the cake, her next door neighbor who is like family wanted to pay for it, i was charging her for supplies only and the price came to 90$ (which was a double full sheet with two different cake flavors and two edible images one with her kinder pic and the other her senior pic plus a winnie the pooh figure and the cap and gown figure) well she though 90 was to expensive and complained, so i told my cousin i would pay for and make it as a gift to her, which i did, the neighbor showed up with a white full sheet cake from some grocery store which cost her only 65$ put the cake side by side and hers was burnt which you could see through the frosting which was craked, well anyway everyone ate my cake and it finished which based on the size of it i though was going to be immpossible, the cake she brough only had two pieces from it missing and my aunt was practiclly begging poeple to take some home, after the party she apologized to me and said if she had only paid the extra 25$ she could have saved herself some embaarassment. eventually people who choose price will one day see the error of their ways sorry so long 
I never explain, but just say right up front that they are getting a custom cake for the Wow factor and I'm expensive. People don't care otherwise. Either they will purchase from me for the Wow factor or they will go some where else for the cheap.
I have a question for everyone on the pricing issue --- you all know the cheap restaurants in town right? And you probably all know the expensive restaurants in town correct? Have you heard the spendy restaurant explain their prices?
I made a wedding cake for this weekend and a grooms cake which the groom loved. There was a lot of buzz about the cakes. This was done for a friend of mine. I had a lot of people tell me that they wanted me to make their wedding cakes...my response was oh yeah cool...I come with a nice hefty price. LOL I responded with this because I know these people are all cheap and would want it for free. or very cheap. Mind you I live almost 7 hours from there. I havent posted the pictures yet. I will soon.
MC
If I were you, I would not waste anymore time on this person. Even if you explain to try and justify your quote, she still would not understand and she will just probably talk you into a lesser price for the same cake.
Move on to the next potential customer and avoid her. No need for you to explain yourself. you don't owe her anymore of your time.
Okay guys, to me it seems that this person was only trying to use the "future business" (i.e. her catering contacts) as leverage to scare you into doing it cheaper.....
I agree! I've had people say that to me too: "If this cake turns out nice I have other contacts I will be giving to you" etc. I always dislike that "IF" they give me!
I just had a lady try to order a pretty large 3D cake from me, one of the ones that requires an internal stand, etc. I charge $5/serving for the ones with an internal stand and the fondant (usually takes two layers to get the details right), etc. She wanted one for 50 people which is a pretty big one, she wanted Dora. She didn't bat an eye at the price but a few minutes later her phone clicked out and she never called back. 
Okay, dumb question -- what is a polite response (besides "you'd better go to Walmart" -- I love that response ) to "If you do a good job I'll recommend you and I know lots of people who need cakes..." I told Mrs. 6 foot wedding cake when she tried that one with me that "thank you, but I pick and choose the business I want; I don't accept every commission. If I did I might get overwhelmed and my quality would go down. Can't have that now, can we?"
"......and I know lots of people who need cakes..."
How about: "Me too! I guess that's why my calendar is totally booked!" (smile sweetly.....bat eyelashes!)
ha ha ha ha ha ha ha!!! That's a good one!!!
I think that you did exactly the right thing...and I say this because I did exactly the WRONG thing when this happened to me last year. I was asked to do 2 10" cakes for the same group but for two different occasionas -- a baby welcoming and a birthday for 2 people. Well, I quoted her 55$ and she balked and said that she was thinking of spending more like $20 per cake. SHe said that she wanted to be able to refer me, blah, blah, blah. She's a member of our church, and I felt really bad about the whole thing, especially when she said that she went to a bakery and they quoted her $17. I should have told her to go with them then, but she acted as though she was doing me a favor. 
I did the cakes for the lower price but came away feeling really awful. I will NEVER do that again! You did the right thing, make no mistake about it! Sarah
I don't think I would explain my prices but if I felt the need to do so I think I would do so like Duff did on one of the Ace of Cakes and tell the person you don't deal with the run of the meal type cakes. Your cakes are the WOW type cakes and are one of a kind which is very costly. If they went on and on about your cost I would say "Well you get what you pay for."
If someone wanted a cheep cake and said I was going to give you more business if this one was cheaper or good. I think I would say "Oh thank you for thinking of me but like I said most of my cakes are for the more high price type of parties. I don't really do the kinds of cakes you are thinking of."
Give me a break. How cheep are these people? Really if this was someone in the business I doubt they would think the price would be less. I've never seen a really low price catering job so they should know things that are good don't come cheep.
Thanks guys- I realized after I wrote my original email to her explaining what she would get for at "cheap" price somewhere else and then reread it that it was a waste of time and that's why I just went ahead and deleted what I wrote and simply wrote "Thank you for inquiring and Good Luck" and left it at that. I just got the wrong feeling from her and my instinct told me to just leave it alone and move along.
I used to get bothered by people like that but I am getting over these sort of things. I have a product that is only for certain people that want something extra special and you can tell who those people are and who they aren't. I know if I would come down on a price for this lady she would probably be a pain the whole time anyway. I guess you learn to spot them the more you are out there!
It's funny b/c I have a friend that is a florist and unknown to me I was telling her the story (because she's in the type of business that can relate) and come to find out she knows who this lady is b/c she is a client of hers and she is cheap with her too!! lol - (small world) She says she only orders a certain $ amount ($40 to be exact, and I know that you can't get a whole lot of flowers delivered from a florist for $40) and that has to include delivery fees and all and will not budge and expects grand arrangements (these are orders she places for her office when they need to send out flowers to clients and such). But it was just funny that she knew exactly who I was talking about and totally understood! So my instincts were right and I'm glad I just kindly thanked her and moved on! Hmm I wonder if she will be contacting her for her wedding flowers! She said if she did she would tell her she knew of a great cake baker that she could refer her too!! LOL
Yeah, people kill me with their comments! For the christmas season, I was making these snowmen, that were about 4-5 inches long, and were more cake than a cupcake. I'll post a pic too so u can see. And, my Wilton instructor, who is also a prof baker, said she wouldn't charge less than $5 a snowman. I said, well, I'm not a pro, so, I'll charge $4. Do u know this woman at work actually said, "I don't think so! $4 for a piece of cake??!!"! I said, "ok.", and took it and sold it to someone else. The nerve people have!
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