Is My Pricing Way Off Base?

Decorating By lmn4881 Updated 17 Jun 2008 , 8:58pm by lmn4881

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lmn4881 Posted 17 Jun 2008 , 8:11pm
post #1 of 4

I am a licenced home business and I bake out of a commercial rental kitchen. I've had a few orders lately, that have me a little upset.

Calls for a quote, tells me what they want I tell them the wuote and then they decide to go with my competition here in town. Her cakes are beautiful and she mostly does weddings, but I'm wondering if I'm charging way more than her.

For example, a 2 tier cake for a child's first birthday: bottom tier covered in fondant with stripes, middle tier fondant covered with polka dots, topped with flowers on wires and a fondant plaque that said Happy Birthday. Tier sizes were 8, 6. I qouted her $65.00. Does that seem unreasonable?

I seem to have lost a few customers to her. I am acquaintences with the other decorator, and I don't mind them going with her but why didn't they go with me? Does that make sense?


3 replies
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awolf24 Posted 17 Jun 2008 , 8:18pm
post #2 of 4

To me, $65 for that cake is not bad so I do not think you need to be worried about that. Someone may be surprised about that price for an 8" and 6" cake but as a fellow CCer, I understand the work involved and the value of your time.

There could be many different reasons they went with the other baker - maybe they already had a quote they liked and was just getting yours as a comparison, maybe they use her regularly and were just checking you out, maybe they liked her idea, whatever. I would try not to let it bother you. I am sure that in other instances, you'll get the orders instead of her.

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Crazy-4-Cakes Posted 17 Jun 2008 , 8:28pm
post #3 of 4

That's about 30 servings per my chart and for a cake with fondant covered I charge $2 per serving so your pricing seems fair to me. I'm in MI and I also rent a commerical kitchen. I have done some calling and pricing for some of my competition and the bakeries in my area won't do anything with fondant/gumpaste. They are about $2.25 - $2.60 per slice and that's all buttercream and no 3-D cakes. The at-home gals (not licensed) charge less than $1 per but I think it's a matter of them being hobbiest bakers (a few said so) or that they haven't looked at their bottom line in awhile. It was only this past year that I raised my prices. The more people kept asking for those time consuming fondant work the more I realized that I was giving myslef away. People will realize that they get what they pay for, just inform your customers all the work you put in and your talent (without knocking down the competition) and they will come around!
Don't sell yourself short, my sis always says "God will provide!"

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lmn4881 Posted 17 Jun 2008 , 8:58pm
post #4 of 4

Thanks so much guys! I feel much better. I just wanted to make sure it wasn't my prices. Thanks again!

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