I Lost Another Customer Over Price
Decorating By ZlatkaT Updated 24 Aug 2009 , 9:21am by PieceofCakeAZ
ok, day two of this post!! Thanks for he good luck! My customers normally give me about $10-$20 more than what I charge anyway, so I see it as a tip right now, but later, I just think of it as I just won't get that! I also have a soft heart for those who can't afford an expensive cake like wildsugar said, she is not going to pass up Joe Schmoe any day and also won't pass up Jane Fancy Pants! Not gonna pass up anyone who can't spend much money and needs a cake! There is that volunteer work that cake decorators can do for Cakes For Kids and I would love to be a part of that but no one answers when I call! And these are cakes that people are doing for FREE!!
LOL! I am going to assume you are once again are joking about the $900!!!!
That's all nice sugarplums and fluffy kitties. How about when your family is hurting for money and you keep giving away cakes? Cakes for Kids is another thing all together, I have all the respect in the world for that organization and hope to contribute myself if I can get something local going.
Bride that doesn't budget properly or just can't grasp the fact that she needs to settle for a less costlier design...not a person in need, in my book. 
Actualy this lady who wanted the cake for Baby shower made add at craig list, she mentioned there that she is low on her budget. I responded with my prices and that was the end. She was very polite in her NO respond, but mentioned 3x times "so much money for the cake".
That's all nice sugarplums and fluffy kitties. How about when your family is hurting for money and you keep giving away cakes? Cakes for Kids is another thing all together, I have all the respect in the world for that organization and hope to contribute myself if I can get something local going.
Bride that doesn't budget properly or just can't grasp the fact that she needs to settle for a less costlier design...not a person in need, in my book.
Totally understand where you are coming from!!!! This is not something that I would do all day everyday! Just to know that I helped someone in need cause people have helped me when I was in need before!! Also, totally understand that the bride better settle for something less expensive if she cannot afford what she is exactly wanting! I am not arguing any point that is being made here, just trying to have you realize my side of it! So if having lower prices right now is a stupid way of getting my name out there...do you have any othe ideas??? Please help with the advice if possible! thanks!
Which brings me to another question. If a bride can't even afford a Walmart cake, which if done right is a nice addition to any wedding (clean up the borders, maybe nix the BC roses and add some fresh ones)....why on earth would a decorator want to go above and beyond that....and charge even LESS?? Boggles my mind. Not directed at anyone in particular, just a sense I get of people in here at times, and in other threads. Whew!
That's all nice sugarplums and fluffy kitties. How about when your family is hurting for money and you keep giving away cakes? Cakes for Kids is another thing all together, I have all the respect in the world for that organization and hope to contribute myself if I can get something local going.
Bride that doesn't budget properly or just can't grasp the fact that she needs to settle for a less costlier design...not a person in need, in my book.
Jamie, I love your humor!! And I totally agree. I live within my means, and I expect brides and everyone else to, too. If they can't afford a custom cake it's not the end of the world. Don't cry me a river for a luxury item you can't afford. It didn't work for me at the Mercedes dealer (ha - just kidding - I didn't really do that), and it won't work with me for a cake. EVERYBODY needs to learn to live within their means again to get this country back in order.
Yes. Make the most outrageous cakes you can. Take really nice pics. Use dummies if you need to. Give the real ones to family and friends. Build that portfolio. Do this gradually, scrimp and save where you can, but don't set a precedence of low prices now. You are going to get a lot of people who balk. It hurts at first, believe me. But a lot of us stuck it out and gritted our teeth and made us even more firm in our decisions to be firm.
People love a great cake. But explaining to them how much better you are now, and how better your quality is, is going to fall on deaf ears when all of a sudden one day, they have to pay you $100 more for what they got last year. 
So maybe don't sell yet. Take care of legalities and building your portfolio. It will keep you busier than you think!
You don't have to jump right into doing this. Have fun!
[/quote]Jamie, I love your humor!! And I totally agree. I live within my means, and I expect brides and everyone else to, too. If they can't afford a custom cake it's not the end of the world. Don't cry me a river for a luxury item you can't afford. It didn't work for me at the Mercedes dealer (ha - just kidding - I didn't really do that), and it won't work with me for a cake. EVERYBODY needs to learn to live within their means again to get this country back in order.[/quote]
again totally see where you guys are coming from!! You guys have probaby beed decorating cakes alot longer than me so again, I need your help in what to do at this point?
thanks so much for the tips! I was not trying to argue the whole convo just trying to tell you guys how i exactly feel and what I actually do! Thanks again!!!!!!!!!!
Sure, I understand where you're coming from, too. I did so many cakes for friends and co-workers for years as my gift for baby showers, bridal showers, birthdays, retirements, etc. It did build my portfolio, but it was tough when I had to transition and tell them I wouldn't be doing any more free gift cakes, but they survived it and so did I luckily. Mind you, many of those people have not bought cakes from me since because they just can't afford them, but a lot have ordered because they've already seen the quality and know they're worth it.
And don't get me wrong. I've done my share of cakes for charities I care about, and I do have a "friend" discount that amounts to about 10% and sometimes more if I'm in a good mood and my bills are paid. 
I think Jamie's advice is sound. Keep improving your skills and building your portfolio and before you know it, you'll be ready to launch the business. Much luck!
Your not the only one, everyone wants NICE cakes with al these decorations/gumpaste figures and want to pay grocery store prices 24.99 or max price of 49.99 for a full sheet. Or better yet they bargain with you, "Well what if you do this instead how much would you charge me?" I hate that question! My cakes aren't perfect or over the top nice but I take my time and try to put the best into it.
That's all nice sugarplums and fluffy kitties. How about when your family is hurting for money and you keep giving away cakes? Cakes for Kids is another thing all together, I have all the respect in the world for that organization and hope to contribute myself if I can get something local going.
Bride that doesn't budget properly or just can't grasp the fact that she needs to settle for a less costlier design...not a person in need, in my book.
Well, for one, i wont be giving away cakes for ever. My prices will come up to where i will make money on every cake. Right now, i'm only making $5 or $10 bucks each, but eventually i will charge more just for the time i put in to them!
Another thing, my business will be more like a hobby. We have the luxury of being able to live and save on my husbands income alone. So my "cake income" is totally extra play money. Or savings money, whatever. So unless i get huge and am making thousands a month, my family wont be depending on my cake income. Although...my husband would just LOVE that because then he could quit his job and hunt for a living like he'd like to! LOL!
And yeah, a bride can only afford what they can afford. It's NOT my fault if she wants a huge elaborate cake and didn't budget for it. But if a bride comes to me and says she's on a budget and tells me "I have $x amount to spend on a cake" i will do whatever i can to get her what she wants and still make a decent profit. Granted, she will probably have to sacrifice some things, but i'll work with her.
I agree with a previous poster that said people need to live within their means and get this country out of the mess it's in. If i can help people do that and have a great cake, all while chasing my own American dream, i'll do it! You know, everyone can have their cake and eat it too! 
Right now, i'm only making $5 or $10 bucks .......
Is this after you have factored in dish soap, laundry detergent, toilet paper, electricity, gas, paper towels, trash bags, cake boards, dowels/straws, cake boxes, telephone, internet, water, disinfectant, .... and everything else that goes into the final product? Are you factoring in your time at all?
Thats great if your ok making $5 or $10 bucks and I know you don't need the income from cakes. But cakes are very time consuming. I can't see making a cake for a $5 or $10 profit and lose all that time, that I could have been spending with my family instead.
Hey, I just lost a potential wedding cake order because I'm too pricey ($3 bc, $4 fondant) AND because I won't bake a cake on the same day as the wedding. ::stunned::
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Ahhahahahahahahaha! Doesn't EVERYONE bake the cake the same day as the wedding?
Sometimes things that customers ask me make my head hurt...
Thats great if your ok making $5 or $10 bucks and I know you don't need the income from cakes. But cakes are very time consuming. I can't see making a cake for a $5 or $10 profit and lose all that time, that I could have been spending with my family instead.
Maybe i failed to mention that i just started out. Like literally, it's been a few WEEKS since i made my first cake with fondant. I need the practice, and it happens that there have been a LOT of friends that have been willing to take a risk and pay me to practice on them lately. I will eventually charge more, soon, i hope.
I don't get it.
all the angst, the sturm und drang, the self-flagellation, the wringing of hands, the second guessing, the pity parties about...
omgosh -- they didn't buy my cake cause it was beyond their budget (currently in the Kia Soul/Honda Fit range -- and heading down fast! -- does WalMart make a car?)
----
well knock me over with a feather!
does the BMW or the Mercedes or the Porsche (covet covet!) salesperson act this way when I faint dead away at the price?
No -- they stifle their laughter and politely show me the door and suggest a more reasonable place that will fit my budget.
ditto for nearly every salesperson out there. -- If anything the attitude is "Your loss, chump!"
----
so....may I suggest we adopt the same attitude born of confidence that we sell the Porsches of cakes -- Your loss, chump.
Amen Mr. Dougie...
On a completely unrelated note, think J.K. Rowling came up with the name 'Durmstrang' (one of the schools in Goblet of Fire) from "Sturm und Drang"?
considering her considerable skills at word play, I wouldn't doubt it a bit!
ps -- NO one calls me "that" except my mom! 
Hey, I just lost a potential wedding cake order because I'm too pricey ($3 bc, $4 fondant) AND because I won't bake a cake on the same day as the wedding. ::stunned::
We always bake during the ceremony and decorate the warm cake during the first half of the reception.
To the OP:
Congratulations! When you start losing customers to price objections you know you aren't completely undercharging! If every single person you meet with opens their wallet when you tell them the price, you ain't charging enough.
In truth, if you sold 3 tier cake 80 serving cakes for $65... you would still lose some customers to price.
For every customer we lose to price we have another one tell us how great our prices are. On Saturday during one of my consultations I quoted a couple $7.50 per serving (125 servings) for a complex cake that we didn't want to do... the guy actually says to me "that's a great price, much cheaper than we expected". Now I wish I would have charged $10.
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