So I have this friend/neighbor. We aren't really close, but she was the first one ever to purchase a cake from me. In the beginning she paid me $15 for a decorated 8 inch cake...she ordered a lot at that price! Finally I told her I couldn't do it for that price anymore and she started paying me $25. Last summer she paid me $30 because she thought I needed a raise LOL. We never really discuss the price because at the time it was probably more hobby based. Fast forward to now. I have a legal kitchen and business. She wants a cake later this month. I HAVE TO STOP GIVING STUFF AWAY! For a cake the size she wants I would charge $50. I am not really sure how to tactfully bring up prices. She knows I put in the kitchen, but hasnt asked prices or anything. If she knew I would charge $50 I am not sure she would want the cake...I just don't know. I know I need good set of b@lls here.

I would just very friendly like explain to her that your prices have gone up because of your increased over head and the ever increasing price of ingredients and let her know that you understand if she no longer wishes to place the order.

You do owe it to her to tell her up front and give her an out if she wants it. But don't give the cake away for free.

Oh absolutely. I figure if it doesnt get brought up then I get $30. I wouldnt ever surprise her like that. I just really need to be honest with her, and I would understand if she didn't want it.

Depending on when she may have ordered the cake you may just want to explain to her the need for you to raise your prices and what the new prices will be. If she placed the order a while ago before you raised your prices it might be fair for you to charge the lower price just this last time. Once you've explained to her the price difference then it will be a not stress order in the future. Good Luck!

Tammi

Good luck with that one!!! I know it can be hard. I had to do something similar. I had to do it over the phone because if the person saw my face they probably would have thought I was having a stroke! I still have issues when it is my brother's MIL. She orders from me regularly and she is kind of/sort of family. Those relations are the hardest for me to price, and yet my own mom pays full-price usually after she helped buy my groceries. (yes, I know how lucky I am).
Just wanted you to know, I am sending you great, big large ones to help with that conversation.

Bakery-chick...can you have them expressed mailed to me? I need em asap!

As for the "order," it's usually just in passing like "I want you to do this cake in April." It's usually just sort of informal.

I was thinking of just calling her and telling her that since I put in the kitchen my cost of doing business has obviously increased quite a bit. Tell her what my costs are an still offer a 10% discount to friends. I would understand if she wants to pass on it. I would rather her pass on it then me do it for cheap and resent it.

Merissa,
The 10% off is generous and still lets her feel special. I think that is a very good way to handle the situation. I agree that it is better to do it now than have this huge resentment building. Especially since she may not even blink at the price increase. She may but she may not.

P.s. Fed EX baby!!

I would do the cake she ordered for the price you usually get and then take the chance to let her know that your prices are going up due to the costs of legally running everything. I think the 10% off is really nice.

I say this because when my hairdresser operated from home, she charge $35 and spent time getting my hair the way I like it and we had some chatter while I was there. As soon as she opened her shop I made an appointment. Well, she didn't cut my hair the way I asked (not hard-same as always) and wouldn't dry it because for one it's curly and takes time and two, her next customer was there. Then, she charged me $50! No warning, just here's what you owe. I thought that since service went down and prices went up-forget it. It would have been nice of her to let me know ahead of time and also take into account that I helped support her while she was operating from her house.

Didn't mean to rant, but wanted to explain where I'm coming from. I think it's great that your neighbor loves your baking and I think it would be a great thing to offer her a small discount.

Well maybe I will let this cake go for the same price and then take the opportunity to tell her my price increases for next time. MyDH has gotten an invoice statement all set up and thinks I should have my regular price on there and then show a "discount." I think that is great, but in this instance I don't want it to appear as though I am being passive aggressive. I know I should just state my prices with confidence and then the ball is in their court. I have a little while to think about it. She is a very sweet lady and our kids are friends. They have done nice things for us in the past (however I do think I have repaid them more than enough with cake!)

I have a pair I'd *LOVE!* to cut off and send to anyone interested!!

I wonder if this would work...
Do the cake for your regular price. When you deliver it just attach a pricing list/pamphlet to the cake box. Let her know that you really appreciate her patronage and that the list of prices are for her future reference. As well tell her since she is a friend and repeat client that there is a special 10% discount for her on all future orders.

Do you have a printed price list? If not, get one.

Post it in your kitchen or wherever customers will see it when they pick up a cake. Mass mail it to prior customers. Do a bulk email to alert everyone of your new prices.

WHen they say, "I need a cake", you hand them the price list and say, "What size are you looking for?"

kakeladi--that's just too funny. I know you would LOVE to do that. I would too if I were you.

Ok, since she already ordered and is probably assuming that the price will be about $30 and you didn't tell her at time of order, I would tell her in an invoice or in person that prices have increased, but this cake will be an exception. (wow, that was one heck of a run on sentence I just typed.)
Tell or have in print what the price would be/will be from now on.

Make sure to have something printed up with prices or base prices for certain cakes, that way the customer can have an idea of roughly of how much it will cost.

By the way, I know we both live in MI so if my DH gets out of line I can get you those items you requested pretty quick.

A price list is a great idea....how would I even begin one? Anyone has a copy of theirs that they would like to share?

Kakeladi, I'm sure there are a few us here who would volunteer to hold him down while you get the job done.lol

You guys are cracking me up!

My sister keeps her husband's in her purse, I'll ask if you can borrow them.

okay after all of your help here and talking to my DH, I have decided to let this one go. This cake "order" has been hanging out there for a long long time (it is for a 1st communion). She mentioned it before I was legal and everything. I guess I feel weird calling her up now and telling it would cost more than what she is expecting. But NEXT time she asks, 1st thing I am going to have to tell her I have increased my prices. A price list would also work. I don't have one yet. I did just get my new business cards yesterday though! yippee!

So I guess I will need to put those balls on lay-away I will need a good solid pair.

If she's already ordered it from way back, give her whatever price she's expecting, but give her the price list at delivery and just kind of give her an "FYI"...for next time.

You guys are cracking me up. I have about 3 bil's who left their, um, equipment... "in the dresser drawer" (or so my DH likes to say), so I could probably sneak them out and ship them whenever, and they'd never be missed. LOL

before my website, I always included a menu with prices, servings and flavors with every cake that went out the door- that way they could make their decision ahead of time without any bad feelings. Give it to her for $30 this time, and then just point out the menu for future purchases. Good Luck!

just an update! I let the cake go for my "old" price that she is used to. I didn't really get a good opportunity to let her know that my prices would be going up in the future. But the other day she asked me for another cake in a couple of weeks. I told her that I could do it but I have had to raise my prices. I told her that she did not need to feel obligated. She seemed okay with the price increase (I think). I still offered her a 20% discout. Looking back I think I should have only offered 10%. Oh well, if she's not okay with it, the ball is in her court this time!

Merissa, just as an aside... (not meaning to go off topic) I'm so PROUD to hear that you finally got your legal kitchen! I know you have worked so hard to get to this point. Your cakes are fabulous and you so deserve to have this great opportunity!

thanks