I was wondering for those who own their own business how the economy, gas prices and flooding has effected your businesses?
Has your prices for the product and delivery increased? Has your profits dropped at all?

My sales are 142% of what I did all of last year ... and it's only June.

There's an economy problem?

No, seriously, I think I'm in the perfect position by being a "you don't have to cater it expensive" type of business. Those who are cutting back, are cutting back by calling me instead of the big expensive caterers and the big expensive hotels. I'm not the cheapest cake in town ... and I'm not the most expensive either.

I agree, I see a lot of brides are booking WAY ahead of time (I am getting a ton of calls for NEXT June!) because they know prices will go up and trying to jump on this years prices. But people are still buying plenty of cake!!!

I have noticed people are charging to their credit card a lot more then paying with a check or cash..

Now, the economy is affecting my bottom line..I have been spending more time trying to find other avenues for supplies, as many deliveries now have surcharges from the trucking companies...

My business has almost doubled from last year...no signs of slowing down for me anyways....and as mentioned....I've gotten 3 calls this past week to book for next June. Already have 3 booked for next May. I have even raised my prices on per slice and my sheet cakes....no one is blinking an eye. So...to answer your question....business for me is good...even with the talk of the economy.

Business has been good for me. I too seem to be getting a lot of bookings for 2009.

My birthday cake orders have slowed down a bit but the brides are picking up the difference.

I'd rather do a wedding cake anyways - more $$$$ for me.

I just make cakes for fun, but Iâm finding that more of my âfriends & familyâ are asking me to make cakes/cookies/desserts for their events. Just yesterday my sister-in-law asked me to make a cake for her best friendâs baby shower. Normally she would order from a bakery, but she said her electric bill went up $275 in one month and she didnât have the extra cash to spend on a fancy cake.

In my 20+ years of experience, people spend more on special occasions when they are in a money crunch. They spend so much time conserving money all the time that when there is a birthday or wedding, they want to have a special treat. I've always done better when the economy is down.

I agree with Jenn above. I recently raised our prices and other than the odd one or two no one even noticed. Nonetheless, with reports of gas prices doubling next year, the worse might be still to come. Having said that though, as DH says its going to hurt alot of bigger businesses before it hits the small ones.

I raised my prices twice this year and increased my minimum purchase amount. I was a nervous wreck after each increase. I was hemmin and hawin and wringing my hands because I was terrified this would mark the beginning of the end but to my surprise sales are up instead of down.

My hubby says it is because people are staying home and entertaining more at home. I am shocked because I consider cake a luxory item and figured it would be the first thing to go when things get tight. Whatever the reason i am now looking foward to the holiday season if things keep going at this rate it might be the best one we have seen so far.

Indy how on earth do you keep such a close watch on things? Impressive! Do tell . . .

My orders have gone up significantly....I am way busier now at this time of year than last year. It hasn't been an issue yet for me, but I know I am posting on my website this week, that prices will be increasing, so we will see how that goes...

Oh mamas, I'm more than happy to share what I have, but I'd be afraid to! You'd run away scared!!

You know that one commercial where the girl holds up this HUGE honkin' print out and says "I make my own spreadsheets"? That's kinda what mine are like! But it works for me!

Here's a small example for eggs. First two columns are date and price. "Diff" is the difference in price between the last two purchases. then the % of increase between the last two purchases. Running Increase is a running total of how much they have gone up between first-ever purchase and most recent purchase. Running % is the percentage of increase between first-ever purchase and most recent purchase.

Eggs...............Price..........Diff.........% incr......run incr.......run %
5/14/2008.......$17.85      
6/4/2008.........$19.22.......$1.370......7.7%.......$1.370   
6/11/2008.......$21.08.......$1.860......9.7%.......$3.230.........18.1%

I keep a very large spreadsheet on every item I've ever purchased, including stock number, size (ounces, servings, etc....depending on how I measure the price). Right now it's about 30 columns by 350 rows.

It's formula driven to show me the price per serving or per ounce or per packet, plus formula driven to apply my desired margin and compute what the selling price should be, plus columns on the pricing history and dates. Example: Crisco is set up with price-per-cup, enabling me to apply a price-per-cup to the recipes to determine my cost per dozen cookies.

With everything on one sheet, it's easy for me to price-negotiate when I have the GFS or the Sysco sales rep sitting in front of me. "I can get it at *** for $xx.xx. You've got to meet it or beat it if you want me to buy it."

On my sales spreadsheet, I have a page for sales data /invoices, then this info automatically transfers to the page that computes my sales tax, then all of this automatically transfers to the page where I have it graphed for the past 5 years, showing me sales trends. I have it formula driven so I enter one number and it updates 3 pages.

(oh geesh this got long! TOLD ya I was a numbers geek!)

oh Indydeb I got tired just reading that process, I couldn't image doing it. LOL.

I've got to get more organized with keeping up with my cost. You so inspire me

wow Deb....very impressed!
I am not a numbers geek....and couldn't even tell you if I've made a profit or loss as of yet, I let my accountant handle that!!
head hurts thinking about all those numbers!

haha

My profits have gone up this year, even though gas prices are hitting everything. Couples are still getting married, and I do notice that they are still ordering the medium to large cakes from me. Fondant is more popular this year than it ever has been - so brides are willing to spend more on their cakes for it.

The one thing that I am noticing on some wedding message boards is that some brides are opting not to have a wedding cake at all - not sure how this will affect my business in the long run, and I am not sure if it is just a fad...I am still booking up quickly for 2009!

Hey marmelade are they replacing the cake with cupcakes perchance? All I seem to get requests for are cupcakes these days. Just wondering.

About 20% of my wedding orders are for cupcakes, but that changes each year - sometimes it's a little more, sometimes it's a little less, but it averages out to 20% overall. This year (200 brides are going for the big, stacked cakes...cupcakes are out (in my area anyway!) - I am sure each area has their own trends! For 2009, I am beginning to get more requests for cupcakes, so we'll have to see what the trend works out to be.

The brides that are choosing not to have wedding cake are choosing candy buffets (these are becoming really big here), dessert buffets (ie. pies, squares, etc.) or chocolate fountains (although not so much on the chocolate fountain anymore either). Again, this is in my area - could be different in other areas!