Hey everybody! I know I am new to this site, but I am not new to business... I have worked for fortune 50 companies for over 15 years. The bottom line right now in business is that people are looking for a more affordable option for EVERYTHING... from cars, to clothing, to appliances. Right now at my day job (I am a manager at an oven/range manufacturing plant) we are seeing a dramatic shift in our product mix from high end to the low to medium range products. Look around in other industries besides cakes... you will see this everywhere. Anyone have young daughters? Limited Too is switching many of their stores to Justice... which is about a 30% less expensive line. There is a marketing reason for this. They are changing to provide what their consumers want. The fact of the matter is... if you want to stay in business and keep it a healthy one, you need to take a look at what the market is asking for and make a product line to meet this need. Be aware of what people really care about in your cakes, and what is just "fluff". Take the fluff out. Take the variety out. All these things will add up to a lower total cost for you and a lower price point for your customer. And, by all means, market the value cakes under a different name...

i'm already doing it, and they are selling like hot cakes...it is really helping the bottom line...i'm really excited about it....i tell them i've figured out a way that people who have been hurt by the economy can still have a nice cake...not many options..no tasting...no long consults...no bridezillas...i love it.

they really seem to appreciate it too....and i'm still selling the regular priced wedding cakes too....it hasn't hurt a thing...and it's giving me more $$$$$$$$$.

I'm a home baker and a hobbyist at that so I can not comment on it from a business perspective but I would hate to see any of you sacrifice your time to bring in "budget" brides. It's the time to me as much as the cost of the ingredients that makes you an upscale baker and why people pay so much for your art. It's your talent and your taste that you are selling.

I love Leah's idea and I also like the idea of pre-priced fixed cakes. Having a portfolio of cakes with set flavors and fillings. Use your basic ingredients, choose a limited number of designs and flavors. Since it would be your basic most popular flavors, that keeps it simple and you would pick designs you know you could knock out quickly. Make them a fixed price, no substitutions. The reason I like this is if I went to a wedding and saw a simple cake that tasted fabulous I would still want to use the bakery but if I went to a wedding and saw a basic cake that didn't taste that great I wouldn't even ask about the bakery.

Also I have to think personally I would resent working on the cheaper cake, knowing it is taking me just as much time as my high end cake and the only difference was the ingredients...but that may just be me.

This has been a really interesting thread. Thanks for starting it.

I am currently one of the people that jumped on the $99 wedding cake bandwagon, and I have to say it's working out REALLY well for me. I am offering a 6"8"and 10" rounds stacked iced in buttercream w/ minimal buttercream dec. untorted, choc.,yellow,white (whole cake one flavor) no filling, just bc between the two layers of cake (normally I torte EVERYTHING but sheetcakes)or a 2 tier 8"and 10" iced in buttercream w/ minimal fondant accents. If they want filling, it's my standard .25/serv. extra (even though they're getting one layer of filling instead of 3), and if they want fondant accents on the 3 tiered cake, they pay the .25/serv. that I would normally charge for small fondant accents.
I'm also waiving rental fees for plates and pillars (but still charging a deposit)
I'm waiving set up fees (even though generally I don't charge anything anyhow)

So far I have had 10 brides show interest (I put a time limit on it too, they have to book and pay in full before the date is "booked" by March 31)

I have several already booked and others that literally have their checks in the mail right now.

Normally this size cake would cost 2.00/serv. for me so this 65 serving cake would normally be $130.00 vs $99.00 and I don't have to torte or fill!

The people that I have who are already paid up have ordered much more than the $99 cake.
So far nobody has stuck to JUST the $99 cake, several orders have totalled close to $400.00 w/ filling, fondant, satellite cakes, kitchen cakes, toppers, etc.

When I decided to do this I tried to think of how I could cut corners, the ways I did it was to make the following rules:

1. No torting, this saves me a ton of time
2. No fillings, none to make, none to stick between layers, no dams to worry about
3. No colored icings, just white
4. Satin ribbon is included, don't have to fuss w/ fondant ribbon or worrying about NO BORDERS and making the edges super crisp
5. No, I want the top cake this flavor, the middle this, etc. ONE FLAVOR, you're on a budget
6. Its only 65 servings, most brides will need to order more cake, they have to buy additional servings at regular price (I have a stipulation in my contract that only I can provide cake for the reception, and if they get "outside" cake that wasn't pre-authorized by ME, they forfeit their cake AND their money already paid
7. I have my money before I even have the date booked, no chance of not making the money even if the wedding is not until Dec. (it's stated w/ the reduced priced cakes that the money is non-refundable if they cancel for any reason........on a side note, if I had to cancel then I would give their money back)

So you see, all of these things cuts WAY back on the time I"m investing into the cake and we all know in business time= money!
So my cakes taste exactlly the same........they just get assembled much quicker and decorated much quicker on my end...meaning I can do more of them at a time.

Maybe you can't market one for 149.99 but maybe you could find a way to cut corners like I did with TIME instead of ingredients, that way your cake is still YOUR cake and you can still be proud of the taste.

This is such a great thread! Thank you Leah's for your idea. I think I may implement this into my business!

Now THAT's what I'm talkin' about!

This is a very cool idea. I could call it my Bake Me A Cake option. I'm thinking, offer white cake only, untorted, white BC and BC filling only, but they can tell me their accent colors. Offer 3-5 designs that are easy and common in this area, and price it as low as I can.

Gotta get back on the laptop and do some figuring.

I'm really excited about this now! I'm adding this to my website right now. If you want I'll post a link to the page, so you can see how I'm *doing* it.

http://www.freewebs.com/khalstead/99weddingcakes.htm

here is how I have mine setup.......I just used wedding cake design pro in order to computer generate some photos. So far the polka dotted one is the one selling like hot cakes, in different color schemes though. I have a few w/ just swiss dots and ribbons too.

KHalstead, this is off the subject but how do you like the Wedding Cake Desgin Pro? Your designs look fabulous and I'm thinking about getting that program.

I really think this is a great and realistic option. The more people post the better your overall idea is.

The bottom line...We're in a recession. Everybody will suffer. Do you open a separate business to help sales but still maintaining your reputation or be stubborn and possibly pay by going under?

If it doesn't work, it doesn't work but it didn't hurt you. In a couple of years when the economy picks up, you can always close your 2nd business but you might be surprised at how well this actually works.

I like it, I got it on cal java online for only 39.95! My kids love it too..I let them mess around and make cakes on it lol

I'm always sitting around with a sketch book (well, a subject notebook w/ lined pages, not quite as professional) and drawing out cake designs. I get inspired by so many things....I really think it's a great tool to be able to come home from a consultation (or you could take your laptop with you I suppose) and build "their" cake and email it to them...brides get so excited to see it in 3-D. I mean I still draw it for them...but I'm no artist by any means and unless I tote a ton of colored pencils and stuff they're not going to get a good idea of how it looks anyhow. I'll pm you with some photos of wedding cake design pro cakes and the actual cake that was made so you can see how closely they are. I think it's a pretty fun cake tool...could I live without it?? Yes, but it's still fun!
Cake boss on the other hand I could NOT live without, I'm a terrible bookkeeper that thing has saved my LIFE

I posted it to my regular website at http://www.cakesbystefanie.com/bakemeacake.html


I'm offering a 50-sv cake for $99.00 and a 74-sv for $149.00 (plus delivery), trying to make the order process very easy and quick.

All scratch white cake, untorted, one layer of IMBC filling, white IMBC frosting, in 4 choices of pretty but easy piping designs, their choice of color. Flowers from florist if they want. I'm going to use disposable supports (probably tea straws, if I can try them and trust them).

No consult, no tasting, and they have to PAY AT ORDER, so no deposits to track, no deadlines.

I'm pretty excited about it. I'll keep you posted about how it goes, response-wise.

this is a great thread, i think you have given us all something to consider. thank you for sharing your ideas.

I would say also on your site, for a limited time we are offering you blah blah blah. Book by blah blah blah. I would go up a little bit more on your scratch cake by maybe 25 dollars at least. Going from $4 to $2 in my opinion is too much of a discount.

I would also do as KHalstead and put on your stuff no other cakes are allowed to be brought in.

Boy, that's a tough one. My first inclination is to say if you've already established yourself as a good, high-end baker then don't mess with it if it's working for you. If this was something you started from day one, then I don't think it would be such a big deal, but now you've got a reputation for doing high-quality, gourmet products and if you suddenly start throwing in 'bargain bin' products your customer base may think you're going downhill.

If it were me I'd probably tell hubby it's a great idea, but I would be very concerned about that great reputation I've taken time and hard work to establish may be compromised.

That's the beauty of it though newmansmom you don't have to sacrifice the quality! You can still make the same "cake" as far as ingredients go, don't cut the corners there...cut them on the amount of time you spend torting, filling, mixing icing colors, mixing separate flavors of cake batter, piping intricate designs, etc.

I do the same thing, no tasting (unless they want one and it's $10.00), no consult, no sketch, paid in full upon ordering, no refunds for cancellation, and it's for a limited time....people have been THRILLED. I even have one person who ordered one for an anniversary party...she said she's always wanted one of my tiered cakes but could never afford it and likes the simpler designs anyhow!! That's who this was created for. They still get the same quality cake and worksmanship involved...it's just quicker and easier for me. The designs are already laid out, they pick one, pick a flavor, and that's it!!! No long phone calls deciding on this or that, no consult, no drawing and redrawing, no tasting, nothing!!! Quick, easy, and convenient for both of us!

I'm excited to hear about how it goes Steph. I am going to sit down and figure out the numbers on this one for my own price point. I am a little higher than you are per serving, but I think maybe doing $3/serving would work well for me. It would put a 3 tier at $200 and a 50 serving at $150. And I think I'll say $149 and $199. This is a great idea... thank Leah for starting us on the subject and thanks to all who have chimed in with sucess stories.

I feel good about this, too, and I'm good at selling up if they want *more*, and I mean...ANYthing more...but like DH said, it's called a "leader ad", and pretty much everyone has them. You know, when you see the $99 dress ad in Davids Bridal windows. You know if you go in there, you're going to fall in love with a dress that's probably not $99.

This way it's my same high-quality ingredients and Sylvia Weinstock's white cake, so it's no slouch, and my IMBC is to die for. The designs are pretty. The difference is the amount of time I'm saving, like she said...no consult, no sketch, no tasting, no deposits and payments to follow up on, no extra flavors in the cake, no torting, no flavored fillings, no specialty fillings (no icing dams), no colored icings, disposable supports, and a little time to pipe on some basic design work. So it's a pared down version of my other cakes; still tastes as great and looks as great, just less time-consuming on my end.

I am really liking this whole concept. I have been contemplating something like this for a couple weeks, but just haven't sat down and thought it all through yet. This is a very helpful thread and maybe it'll get me started on something like that.

this is just what I've been needing to read. I am also missing out on the budget brides and right now there are alot of those.
so when you ladies say a simple decoration, what are you talking about?

thank you,

melody

Simple decoration means a bit of dots or scrollwork but nothing ornate. Still pretty, tho. You can see my examples on the link I posted.

Did my math, and the 149.00 cake is 70% profit so I'm happy.

Can anyone please tell me how to save this post?

TIA

Once you make a comment on a thread, it's in your "watched" collection. You can also click on the "watch this topic" on the bottom left of your screen below the thread.

I am very interested in this idea too - my only question is (just to be the devil's advocate!) what if you fill up your schedule with the "budget cakes" and have no room left for the money-makers? This is my only big worry - has anyone who is offering this option run into this problem?

Marmalade, with this offer I would probably only book 1-2 budget cakes per weekend that way I still have plenty of time to do a regular priced cake. I'd probably do a few more if I didn't work out of my home and I didn't work FT on top of that.

This topic has really got my mind going.. I'm really thinking hard about starting this.

Good thought Sambugjoebear! I work out of my home, but I do cakes full-time. I could limit the "budget" offer to one per weekend...any other thoughts anyone?

My DH's idea for volume is to make them up and freeze them. Heck they're all the same size and recipe anyway.

That way if you're filling up your schedule, all you'd have to do is pop them outa the freezer and whip them out. I bet I could do at least a few of these a day and still have room for my 1-a-day rule for big detailed cakes.

I bet you could even fill and crumb coat them and freeze them.

Or I could make them and ice them, and THEN freeze them, then just add the details when they're ordered...haha I think that's going a bit too far though lol!

Just spit balling here...