I almost never stray from the business forum, and one of the main reasons is my propensity to pop an aneurysm every time one of these lamentation threads about pricing pops up.
" People won't pay..." " Wants a Walmart cake..." etc.
In the 2 years we've been open in the new shop, not once has someone told me they could get the same cake elsewhere for less money. The tell me they can't afford me ( rarely) or they tell me I am more expensive than someone else, but they never question that they are getting a better cake for the extra money.
If you are getting a lot of price resistance, it just means you aren't done selling yet. People will pay the value they perceive. Part of your conversation, long before you quote a price, needs to be the building of value. ie : " We don't use food products from a craft store, which is pretty common around here. We use a fondant recipe from a Swiss chocolatier, we have our own special blend of real vanilla made from both Tahiti and Madagascar beans..." etc.
If they continue to push back, offer them a less elaborate cake than you have talked about. It's called the " take -away " close. People don't like being told they can't have somethng they want. IE : " We can certainly make you a cake for $200, but at $25 an hour for the decorator, we would need to do one stooge figurine, not three..."
We had a woman come in with her 2 daughters for a wedding cake on Friday. The older daughter told me " When I was at school, I would walk past your windows everyday, and I knew I wanted my wedding cake from here". Ka-ching!! I thought. She told my catering manager she had a $500 budget...for 250 people, BTW. If I weren't confident in my product and the VALUE of my cake, I would have just spun my wheels, and probably not sold a cake, but instead I went to the table, sat down, sketched a cake, and talked with the bride about what she liked about the two different cakes she brought in. The cake I sketched was a $7/serving, plus about $200 for fresh flowers, so I quoted her $1950....and she handed over her credit card and gave me a $1500 deposit.
We quote and sell $500 plus cakes all the time, 3 to 4 a week, plus all the regular $50 - $80 cakes we do. And while I think we make great cakes, a lot of you are super talented, and worth every bit as much as we charge. If they don't want to pay, then they are not a customer, they are just a looky-loo. Don't take personally. Don't settle for less than you are worth.
Wow. Well put!
I actually get a lot of people saying that they go to a baker that is outrageous in price. I had a bride tell me she went to a local cupcake baker and asked for pricing on 100 cupcakes. They quoted her $1600 for just the cupcakes and then $600 for delivery. Now she showed me what she wanted and really, the only thing I could think of is they were trying to get rid of her. I probably could get a lot more money for my cakes but I dont feel right charging people something like $16 a cupcake!
Wow. Well put!
I actually get a lot of people saying that they go to a baker that is outrageous in price. I had a bride tell me she went to a local cupcake baker and asked for pricing on 100 cupcakes. They quoted her $1600 for just the cupcakes and then $600 for delivery. Now she showed me what she wanted and really, the only thing I could think of is they were trying to get rid of her. I probably could get a lot more money for my cakes but I dont feel right charging people something like $16 a cupcake!
So charge her $12, and if your feeling skippy, throw in the delivery. If you feel bad about it, donate the money to the homeless or something, but I'd be whistling all the way to the bank.
We don't use food products from a craft store, which is pretty common around here. We use a fondant recipe from a Swiss chocolatier, we have our own special blend of real vanilla made from both Tahiti and Madagascar beans...
What a suave business woman you are! You believe in your product and aren't afraid to sell it for what it's worth. Good for you! That's the kind of thing that would definetely sell me - if I know I'm getting premium ingredients and talented decorators, I'd WANT to spend the extra money. You go girl!!!
"We don't use food products from a craft store, which is pretty common around here. We use a fondant recipe from a Swiss chocolatier, we have our own special blend of real vanilla made from both Tahiti and Madagascar beans..."
What a suave business woman you are! You believe in your product and aren't afraid to sell it for what it's worth. Good for you! That's the kind of thing that would definetely sell me - if I know I'm getting premium ingredients and talented decorators, I'd WANT to spend the extra money. You go girl!!!
And that is really the point. If you are having trouble getting a fair price, You haven't sold it yet." You gotta make 'em want it!
WHOOT!!
I love this. Couldn't ring more true.
I'd be whistling to the bank too with the cupcake quote... ka-ching ka-ching ka-ching!!!!
I paid more for my wedding cake than I did for my wedding dress (everyone thought we were nuts). It was worth every penny. Makes more sense to me to pay more for the cake, but then I am a cake girl!
We send a lot of cake to very modest venues. There is a decent sized subset of the population who will pay premium dollars for premium cake... and they are not all Richie Rich's from Richistan.
Those are your customers, to heck with the rest.
snarkybaker...I think I love you!!!
I kind of fell into this business (I know, don't yell at me!), but now, of course....I'm completely hooked. Line, sinker & all. The only reason I ever decorated my first cake, is because a friend asked me to. She loved the taste of my cakes and was certain that I could "make it pretty" as well. (I was a graphic designer in a past life, and she knew that too). Anyway...I gave it a try, it came out really nice and I fell in love.
I made her cake for free, as a gift. And from there, people started asking me to make them. I had no idea what to charge or how long it takes to decorate them, and severely, SEVERELY underpriced them. Then I got scared to raise my prices, afraid no one would pay. Well...you're right. They do! I had one customer (another friend) pay more than I asked her, because she said I was wayy to cheap. After that, I only quoted full price.
Sure, I've had a few people ask for quotes, only to be never heard from again. Who cares! Less stress for me! The last cake I did, I was worried about. He was a repeat customer, and he found me when I was really underpriced. I told him how I'd had to raise my prices, time consumed, cost of materials, etc. He didn't even blink. Said..."You're right! And hey...you can't put a price on perfection!"
So, you're right snarkybaker. You're absolutely right! Believe in your product, and the customers will too!!!
I paid more for my wedding cake than I did for my wedding dress (everyone thought we were nuts). It was worth every penny. Makes more sense to me to pay more for the cake, but then I am a cake girl!
We send a lot of cake to very modest venues. There is a decent sized subset of the population who will pay premium dollars for premium cake... and they are not all Richie Rich's from Richistan.
Those are your customers, to heck with the rest.
Well, considering my reception was in the church fellowship hall, I'd call it definitely modest! 
Wow. Well put!
I actually get a lot of people saying that they go to a baker that is outrageous in price. I dont feel right charging people something like $16 a cupcake!
I sell lots of cupcakes for $15 each 
They are NOT a packet mix - they have a core of ganache and detailed fondant work - they are time-consuming to say the least!
I HAVE calculated my prices correctly though - using VERY detailed processes and if I sold them for less I would be treading water... regardless of whether I feel RIGHT about the price or not.
But how much should I sell this cake for??? Just kidding, thanks for posting this. If people don't think of their business as a business that's the problem, and they'll never get past that. Selling is part of business, it's not all fun and decorating. But it is fun when they hand you the credit card! 
snarky, I just had to read this to my husband.. this is SPOT on advice (I love you in all your snarkiness anyway!)
I'm always reminded of this when I get a few "I can't spend that much on cake." and then I get one who wants an elaborate cake and they get their price and say "Oh cool, great."
Hmmm. haha.
The people who have done their homework will know they have to pay a premium price for a premium cake.
Snarkybaker....YOU ROCK! 
Great pricing thread! I know that I could not have started business and be anywhere without CC and the great, experienced people that share their knowledge.
I used to be one of those that was afraid to charge, afraid people might not like it...not anymore. My hubby has realized that it is a waste of time for me to make 9x13 sheetcakes, although I will do them just to get my name and cakes out there. I just opened last fall and still building my clientele. I don't worry when someone calls and complains that they can't pick up a cake for 10 people for $10 right this minute...they aren't my customer. My customer is the lady that called and WANTED a fondant cake that looked like packages and was thrilled to be able to get it. My customer is the one that called excited because she found me and could get a custom cake, understands the cost and wants something fun for her twin's turning 18.
Before I opened, I actually raised my prices from what I thought I was going to charge. I just had new brochures printed but when I have them printed again (it could be 6 mos or more), I'm likely to raise them again.
Snarky, you and all of the others that do get paid for what you do, inspire the rest of us who weren't (or aren't 
) as confident in our cakes.
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