A Question To Those That Charge Per Serving....
Business By cakesarge Updated 19 Mar 2010 , 4:55pm by sweetlayers
Here's my explanation of how I price cakes...I started doing a per-cake price instead of a per-servings price when I saw how people cut the pieces about half as big as I told them to! http://acaketorememberva.blogspot.com/2009/11/how-i-price-my-wedding-cakes.html
I try to keep my pricing very simple and price by the serving. I let my customers know that really the main things that will add additional costs would be sugar flowers, bows, and very intricate piping. I haven't had anyone balk at me telling them there are a few additional features that would add to the cost.
I love this...so many different persceptives. I think I'm all for the simple route of pricing. fondant flowers, figures etc.... would be extra. Basic cake prices are what I'd do
I go against all the odds and charge per tier/size. I do this because people cut cakes differently and just in case they order a 8" square and get only 30 servings instead of 32 servings, in their mind they paid for the tier and not the serving.
Also, when it comes to consultations, I get all their information up front about their cake including where the reception will be so i can tally gas and a fair delivery charge. I then send it all via pdf in an email so they will know how much it all costs before they waste my time at a consultation.
It works most of the time.
Oh yeah, it always averages out to be roughly the same as other decorators in my area.
When you sell by the tier or by the cake, how does the client know how many people it will serve? How do they know if they need a 10" round or a 12" round?
I give them the max number that the individual cakes will feed according to Wilton. So, I will let them know that a 12" round will provide up to 56 servings and the cost is XX.
This way, they can go to my website and do the math.
sweetlayers, then it's just semantics. In one post, you mention "You don't know how they are going to cut it". 2nd post, you tell them how many servings they get.
Just like the rest of us.
If they cut it and only get 40 pieces out of the 56 pc tier, they may very well get upset because they paid "for a tier that served 56, and it didn't."
Semantics. THe only diff is that you go ahead and do the math (56 servings times rate = "here's the cost of this tier of cake"), whereas we sell them a wedding cake that serves 125 times the serving rate.
I understand the psychology of what you are saying .... but it's still just semantics. You're still selling it by the serving.
sweetlayers, then it's just semantics. In one post, you mention "You don't know how they are going to cut it". 2nd post, you tell them how many servings they get.
Just like the rest of us.
If they cut it and only get 40 pieces out of the 56 pc tier, they may very well get upset because they paid "for a tier that served 56, and it didn't."
Semantics. THe only diff is that you go ahead and do the math (56 servings times rate = "here's the cost of this tier of cake"), whereas we sell them a wedding cake that serves 125 times the serving rate.
I understand the psychology of what you are saying .... but it's still just semantics. You're still selling it by the serving.
Yeah, I guess you're right. However for my budget conscience people, it makes for a good "itemized" proposal. 
I love this site's explanation of prices, very to the point:
http://www.carriescakes.com/prices.php
I have a flat rate for the most part, but if I have a customer that wants 100 gumpaste flowers cascading down the cake, I Have to charge extra!!! I do like the flat rate Idea and use it on a regular basis, but I feel like somethings just have to be considered an extra fee, mainly sugarflowers (gumpaste).
Hobbyist/ customer perspective here:
The point of pricing is for you to make $$ by making the SALE. Most customers really reset the "nickel and dime" thing- heck in Russia I was charged 3 cents for the ketchup packs at McD's, and in Mexico 3 cents for bags at Sam's (what "they" consider "extra").
I think you should add in "free" what most would consider "basic" and limit the "upcharges" for marketing purposes. Sure, in your pricing you have calculated overhead, labor, supplies, etc....but... you don't "add" them to the customer's bill.
The point is to make the sale (at a fair price to you). Frustrating the customer with "extra charges" won't get you there...IMHO.
One bride shared that while my base price of $3.50 was higher than the bakery that was $2.25, by the time the other place added the nickels and dimes for cake flavors, borders, flowers, etc., their cake was over $4.00.
So clarify, because you really are contridicting yourself with this statement...is $3.50 per serving your BASE price or your price period? When you call something your BASE price that tends to mean other stuff can be added for additional fees.
And if it is your only flat price then if you do anything in fondant or with extreme decor options and architecture which adds so much more time then you are shorting yourself money.
I don't believe in a base rate then add on from there either, which is why I devised my matrix.
Based on what the bride wants I quote that flat fee per serving that correlates to the design she has chosen. No hidden charges. What happens many times is a baker states their BASE price and the bride gets that stuck in her head but if that baker actually does the design she chose, then the "add-on" phase begins. The bride went with the baker she thought was giving her a better price, but like you say, in the end she paid way more than she would have if she went with me in the first place.
So clarify, because you really are contridicting yourself with this statement...is $3.50 per serving your BASE price or your price period? When you call something your BASE price that tends to mean other stuff can be added for additional fees.
My price was $3.50 for BC and $4.50 for fondant. I had about 5 designs that had extra charges and it was for obvious reasons ... like the city skyline cake which involved hand cutting a city skyline out of sheets of chocolate; or the glass-block-and-mirror dessert stand which required at least 2 employees to deliver and set up (extra labor fee).
for 99.9% of my cakes the price was $3.50/BC, no matter what the design.
Thanks for pointing out the confusing way I phrased it so it could be clarified! 
I love this site's explanation of prices, very to the point:
http://www.carriescakes.com/prices.php
I love Carries cakes. I wish I could meet her.
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