It sounds to me like they already know what they will be missing by having to order from a grocery store.

I don't think she was asking to lower the price at all, it looked like a sincere apologetic letter that unfortunately her friends are cheap-skates and she can't afford to foot half the bill if her share is over $200. That she would love to use you for your custom cakes, but just can't.

I simple "I understand" is sufficient.

Maybe offer to make one display cake to go along with the grocery store cakes. That way, you'll at least get the exposure for your design and the guests will know that what they are eating came from Kroger's. And your customer will be happy that she was able to use your talent.

I charge $4 per serving for a simple design, up to $5 the more gumpaste and other extras (luster dusts and carving, for example) I use.

shisharka's response is PERFECT!!! I might have to borrow that at some time. I think that you are charging WAY too little, and even I charge way too little!!!
Leave the door open to future possibilities. And make sure that you remind them that you do "specialized" cakes, whereas Kroger does crap. I mean... well, you know!!!

I would leave it professional and just say,

Thank you for your consideration. I do understand your need to go to Kroger for the amount of cake you are looking for. Please do not hesitate to contact me for any future cakes you might have need of and congratulations to your son on his fantastic acheivement.

You have prices that are non-negotiable and if they can't pay then they get a Kroger cake. She probably knows that she doesn't want it but hey if it is all they can afford then no need to make her feel bad. If you leave her with a professional note then you will most likely have a return customer at some time.

I looks like they obviously don't really appreciate the value of a really good cake and it can actually be dificult to accomodate those who are really concerned with the price because I find that they pick apart the cake a bit more because instead of seeing how great the cake is, they look at how much they spent and might have an outlook like "if I'm spending this much it better be perfect". I would definitly not lower your price. Your cakes are great and just because they can't afford it doesn't mean the next person can't. I like the idea of doing the smaller decorated one for the exposure although you have to be careful with that one because the guests may think you did all of the cakes and if the grocery store cake doesn't taste very good, you wouldn't want that rep. Good luck and let us know what happens.
Heather

Macsmom,

Do you charge that for sheet cakes, also?? I know a lot of decorators charge less for sheet cakes but I've never understood why! Can someone please enlighten me 'cause even if I offered 3 full sized sheet cakes for $100 each decorated with sports theme per each kid and possibly a EI of the grad, it still comes out to less than $1.00 per serving?? Isn't a serving of cake, a serving of cake?? I don't even charge more for fillings if they order a layered cake!

I charge the same for all cakes. It's the same amount of batter, after all!

The only reason I charge extra is when there is a lot more design involved. Figures, flowers, topsy-turvy and other 3D cakes are extra.

A sheet cake with something simple would be $4 per serving (dots and stripes or other 2 dimensional shapes). A sheet cake with 20 flowers, 2 bows, a graduation cap, confetti, and a diploma made of gumpaste would be $4.50 per serving.

If all of that was applied to a topsy-turvy cake it would be closer to $5. (You have to bake more cake in order to have enough left after carving and carving takes more time and effort).

Macsmom,

Thanks so much for validating my opinion! While some my think that my $2 per serving is cheap, I have to take into consideration my demographics. The nearest "bakery" charges only $1.25 per serving and the price goes DOWN per serving the bigger the cake! Go figure!

Here is a draft of the e-mail I am considering sending her. What do you think?

Kathy,

I understand your concerns! This momentous event is akin to planning a wedding! Unfortunately, I just cannot compete with mass-produced grocery sheet cakes in price. I use farm fresh organic eggs, sour cream, cream cheese and only the highest quality ingredients and spend hours custom designing and executing a clients cake. I am disappointed that I will not be your cake provider at this event, especially since I myself am a Westview alum! I hope you will consider me again for a future event and give my best to the graduates on their accomplishment!

Sincerely,
Chris

I think that sounds great!

I think your response is great. You still let her know that you are no comparison to the mass-produced store cakes, but left out the wording that might make the potential client feel offended. Wel done. It sounds to me like she really wants your cake, but her co-hosts don't. I think the tactful way you worded your email will help ensure she might be back on her own.

I think your response is great...maybe leave out a couple of the exclamation points...but it's very polite and gets the point across.

It's funny...for a graduation cake, they think that's high, but if it was a wedding cake they would think they were getting a bargain...

i like your response email to. you put it quite nicely.

Yes.. take out the exclaimation points and trade them for periods and you have yourself a great response e-mail.

Sounds very professional. Good luck - let us know how this turns out.

I had someone who wants a baby shower cake. She came through my aunt so I charged her $40 for a cake that will serve 30-35.

She had called another decorator who told her she was busy so the cake would be baked and frozen before decorating. She told me if she wanted a frozen cake she would go to Kroger.

So I gave her my price and she really didn't want to pay it. Okay, so you don't want a frozen cake but if you want to pay $20 for a cake....it's gonna be frozen and crappy!

She took a couple days and finally got back to me and is going ahead with the cake. I thought for sure she would never call back. I think she called around to a few other places and realized that you can't beat nearly $1 per serving for a fresh cake. It is a great deal!

Sometimes it is very frustrating.

I took out my exclamation points and zipped off the e-mail to her this a.m. Here is her response back to me:

I'm sorry, too. Thanks for your nice reply. I will certainly keep you in mind for future reference and would look forward to tasting your cake! Thanks, Chris.

I guess this cake is officially off my calendar! Well, it was to be Memorial Day weekend so now I can spend it with family instead of stressing over cake!!

yeah, instead of stressing over THREE HUNDRED servings of it!

Well done on not being backed into a corner & forced to make a decision you later regret. Your reply was professional & to the point without giving offense.People who will only pay grocery store prices have never tasted a fresh cake made with lots of love & dedication! It's a battle I fight constantly.
I too am a WMI & I tell my students that to make money decorating cakes you have to not only be good at it but have clients willing to pay for your skill as well as cost of ingredients etc. I have learned to say no to those that balk at the price quoted when asked about lowering it.
I agree that dessert for $2/person is really good-most restaurants charge atleast $4!

I'm coming to Mobile then.. because you can't get ti for less than $6 out here..

Good response to your e-mail too.. I bet she comes back when it's just her ordering.

This is a great opportunity for a lot of people to see and taste the quality of your work. My suggestion would be the following e-mail -

"I do understand your budget concerns. Unfortunately, I cannot compete with the price of mass-produced grocery store cakes. I do believe my cakes are of a much higher quality, both in taste and visual appeal. In order to address you concerns, I can offer you ..... "

then go on to offer an alternative - perhaps one large round layer cake decorated according to theme and several sheet cakes more simply decorated.

I would end my e-mail with -

"Please let me know if I can be of any further assistance. In any event, I thank you for your interest and offer you much success with your event."