People Just Don't Want To Pay My Prices!
Decorating By MandyCakez Updated 15 Nov 2010 , 12:18am by LatteGirl
I had one of those brides who doesn't think baking a wedding cake could be that big of a deal. So she is going to do her own for 250 people. A 9x13 is a big deal for her. She had the nerve to ask to borrow my pans.
Thats aweful! My husband is a carpenter and he too has to deal with people saying his prices are expensive even when he's dirt cheap. In the past someone turned down his price for a job and then asked to use his tools...thats crazy.
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
Great idea about the restaurant cake comparison.
Also perhaps ask the customer what their budget is first - then it might be a better way to start a conversation about their needs rather than scaring them off with a cost they weren't expecting to start with.
It's not these peoples fault that they don't know the work that goes into a cake.
Many creative industries get the same thing. I work in advertising and no-one wants to pay our creatives and designers for their work, and for our organisation time. Apparently that's 'easy' too : )
I was talking to my Dad last night and telling him about this forum and how everyone feels the same and that for a lot of us that are newer, pricing seems to be the toughest part. He said We need to stop and remember that our customers are paying for our time and talent and that not just anyone can bake and decorate beautiful cakes! That this is a skill and people pay for skill!! 
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
Second I have eaten at plenty of places where the dessert sizes are enormous compared to a 4 by 2 by 1 inch dessert size serving. What is the difference, at a restaurant I am not paying for decorating on that large 8 in layer wedge of chocolate cake I just paid $8 for. Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
All this said I think to OP's prices are more than fair and could be charging more.
I was talking to my Dad last night and telling him about this forum and how everyone feels the same and that for a lot of us that are newer, pricing seems to be the toughest part. He said We need to stop and remember that our customers are paying for our time and talent and that not just anyone can bake and decorate beautiful cakes! That this is a skill and people pay for skill!!
Very true...
And this is why is someone should 
at my prices, i then briefly explain what goes into making and decorating a cake - and that if they want quick/slap dash and cheap, then there is always the supermarket down the road. But they must remember, the supermarket one will not be a one off as the customer will have a book to choose which cake they want (#3 round, blue and white) and nor will it only have one person working on that cake - which means numerous people are adding *their* touches to it - unlike me who works alone on a creation.
My prices are what they are because i *create* a cake - not just whip one up from the freezer out the back that was mass made 3 months ago.
If one *sells oneself* then the customer is more aware of the time and effort that goes into creating each and every cake.
Creating a cake sounds better than Making a cake.
Anyone can Make a cake -
Bluehue
I was tired of spending hours for pennies! I checked bakeries in my area and read up on the subject of pricing. All of my previous clients that knew me as "cheap", I made them aware that I had officially launched my business. I created a website and had business cards printed. I also created order forms requiring a 50% non refundable deposit.
When I got serious so did my business. I charge 2 for buttercream and 3 for fondant the initial cost....every 6 mos it will increase by .25 cents. The little girl gofer I charged $20 just for her (see her in my photos) I have been so so busy lately. It is amazing when you value yourself how others value your product. I tell them if they want lower prices go to Walmart where I use to work I am sure some of my old cakes are still in the freezer, LOL
The rejections and time wasters are all part of it. I'm sure all the big cakers get it. I mean how much would a Duff Goldman cake be? Ya know - I'm sure he gets people that freak at the cost.
And other great cakers who don't have th fame will always have people who expect a smaller figure.
Don't let it get you down. Keep going and don't bring your prices down!
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife.
Paying for a 48 serving cake is much different than paying for a few desserts.
???Cake = $240.00
Divide that by number of servings = 48
48 x $5.00 per portion = $240.00
Second I have eaten at plenty of places where the dessert sizes are enormous compared to a 4 by 2 by 1 inch dessert size serving. What is the difference, at a restaurant I am not paying for decorating on that large 8 in layer wedge of chocolate cake I just paid $8 for. Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
But the restaurant where you are eating that piece of dessert has already factored the cost of their dessert and then divided that into the number of servings SO YES YOU ARE PAYING for the deorations - even the dollop of cream on the side of your plate.
ANDDDDD - the restaurant has even factored the cost of everything - plating up - washing up - plus all the other things tht go into running a reastaurant - power/gas/wages/cleaning/water.
Just the same as a Caker who supplies a cake - we must factor every aspect of our time and overheads into that creation.
Bluehue
All this said I think to OP's prices are more than fair and could be charging more.
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
I'm not understanding why you think it's not a legitimate comparison. If you bring 46 of your friends with you to that restaurant to buy them dessert, is it not the same as inviting them to a wedding where you buy their cake. I'm not seeing how you and your wife being able to go out alone invalidates the comparison of cake to cake. You can also go out and have a $15 chicken dinner alone. Does that mean the caterer shouldn't charge you $15 apiece for the 48 sit down chicken dinners you buy for your wedding? Why should cake be any different?
Maybe I'm confused about your point?
Here's an interesting wee pricing guide blurb
http://www.cakeboss.com/PricingGuideline.aspx
And yeah I didnt get the my wife and I get a $13 dessert thing either. In this case we should be charging MEGA for our cakes : )
I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
I might be missing something here but I'm not sure what the point is on this one. Ironically or coincidentally I use this very same example to illustrate how people go Math-Dumb when it comes to buying wedding cake:
A $4 cup of coffee isn't a lot of money .... unless you have to buy 200 of them.
A $4 per serving slice of cake isnt' a lot of money .... unless you have to buy 200 servings of it.
I guess my response would be "Well, Duh!" Of COURSE paying for more servings is going to cost more. Of COURSE someone can go out every single day and buy a single or 2-single serving dessert but cant' do that every day for 200 people. How that is interpreted into a reason why the wedding cake should cost less escapes me.
All the client has to do is "Do the Math". Feeding 200 people will cost 200 times what it costs to feed 1 person.
(I probably need to pull this info from my seminar material and include it as a blog article.)
I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
I might be missing something here but I'm not sure what the point is on this one. Ironically or coincidentally I use this very same example to illustrate how people go Math-Dumb when it comes to buying wedding cake:
A $4 cup of coffee isn't a lot of money .... unless you have to buy 200 of them.
A $4 per serving slice of cake isnt' a lot of money .... unless you have to buy 200 servings of it.
I guess my response would be "Well, Duh!" Of COURSE paying for more servings is going to cost more. Of COURSE someone can go out every single day and buy a single or 2-single serving dessert but cant' do that every day for 200 people. How that is interpreted into a reason why the wedding cake should cost less escapes me.
All the client has to do is "Do the Math". Feeding 200 people will cost 200 times what it costs to feed 1 person.
(I probably need to pull this info from my seminar material and include it as a blog article.)
This happens alot to me!
I'll have a customer who maybe usually orders a 30 serving cake and used to paying $xx for the cake.
Then they have a big party come up and decide to volunteer to be the cake person...tells me they want 60 servings, and then they really balk at the price.
Its like...well...you usually order 30 servings...now you are ordering double the servings...so the logic here seems pretty straightforward....
Oh well!
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
Second I have eaten at plenty of places where the dessert sizes are enormous compared to a 4 by 2 by 1 inch dessert size serving. What is the difference, at a restaurant I am not paying for decorating on that large 8 in layer wedge of chocolate cake I just paid $8 for. Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
All this said I think to OP's prices are more than fair and could be charging more.
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
I just made 11 5' tall fondant ninjas for an order to go on cupcakes. Which I will make in the morning. And she is paying ?$55!!! I under charge every time!! I didn't realize it would take 2 to 3 hours EACH!!
If you know you are pricing too low, then you ARE. Especially because you are in a big city, you will have people that have all different kinds of budgets. Don't worry if one person says no. I'm sure there at least 100 in your area that would pay at least $325 for a sculpted Noah's Ark cake with handmade animals...
If they say no, then its not worth your time...wouldn't you rather work less for more money, than work your BUTTercream off just to give it away?
If you're making 18 handmade gumpaste animals, say 30 min. each...and that's fast...That's still 9 hours of work, not counting your baking time or materials. You should be charging at least $10 per hour for your sculpting time. If you think this sounds like alot, think of it like this...whenever I think I'm charging too much in an estimate, my family reminds me, "Plumbers get $63 an hour." That puts it into perspective for me. You are an artist. Now start pricing like it! 
If you're new to this and KNOW you should be charging more, raise your prices now...before your customers will get upset by the change.
Keep in mind, every one wants what they see on TV, because they don't see the price tag.
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
Second I have eaten at plenty of places where the dessert sizes are enormous compared to a 4 by 2 by 1 inch dessert size serving. What is the difference, at a restaurant I am not paying for decorating on that large 8 in layer wedge of chocolate cake I just paid $8 for. Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
All this said I think to OP's prices are more than fair and could be charging more.
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
Who goes into a restaurant and asks for a SLICE of steak with their coffee ????
Sorry but you are comparing Apples to Trains...
LOLLL - we can't get a good steak over here for under $39.99 in a restaurant - and thats the tail end of the market......let alone a slice
But whats that got to do with ordering a SLICE of dessert . 
Shezzzz, my head is hurting from banging it on the desk all the time
I have to walk away from this thread - its making my eyes bleed with what you are typing and my head hurts.
Bluehue......................... toddles off for a panadol.
As for restaurants charging $4 up to $7 for a dessert is a good way to look at things. People gladly pay the price for their desserts but they won't pay $2 a serving and thats a steal.
While I think $2.00 per serving is more than fair. Comparing what people pay for a dessert in a restaurant and a dessert serving of cake is not a legitimate comparison. I can easily go out to dinner a pay for a single dessert or two for me and my wife. Paying for a 48 serving cake is much different than paying for a few desserts.
Second I have eaten at plenty of places where the dessert sizes are enormous compared to a 4 by 2 by 1 inch dessert size serving. What is the difference, at a restaurant I am not paying for decorating on that large 8 in layer wedge of chocolate cake I just paid $8 for. Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
All this said I think to OP's prices are more than fair and could be charging more.
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
Who goes into a restaurant and asks for a SLICE of steak with their coffee ????
Sorry but you are comparing Apples to Trains...
LOLLL - we can't get a good steak over here for under $39.99 in a restaurant - and thats the tail end of the market......let alone a slice
But whats that got to do with ordering a SLICE of dessert .
Shezzzz, my head is hurting from banging it on the desk all the time
I have to walk away from this thread - its making my eyes bleed with what you are typing and my head hurts.
Bluehue......................... toddles off for a panadol.
First of all...who said anything about a slice of steak?
Second of all...if you would have read my post properly bluehue you would understood my point with the steak was that people pay more for things that are important to them even if the quantity is small.
I wasn't saying that they are the same thing. Next time you respond to someone's comment, read is properly before you respond rudely. 
First of all...who said anything about a slice of steak?
I did...
Second of all...if you would have read my post properly bluehue you would understood my point
I read your post twice - and quite frankly - i still have no idea what your on about
with the steak was that people pay more for things that are important to them even if the quantity is small.
Yayyyyyyyy
So in actual fact what you are saying (getting back to the whole *cake* buisness) is that you understand WHY people pay Xie prices for a slice of cake - because......ITS IMPORTANT TO THEM
I wasn't saying that they are the same thing.
Really !!! .........then why would you compare them? Next time you respond to someone's comment, read is properly before you respond rudely.
*cough* - excuse me - i did read properly - then i red again - and srill it didn't gel.
Point is it matters little what people are willing to spend on dessert as price per serving is not calculated the same way, decorating is not part of the price, and paying for a couple of desserts is not the same as paying for an entire cake.
I totally understand that if i go into a restaurant that i am going to be paying for the decoration on the cake - because ITS ALL PART OF THE CAKE.
Bluehue
(I probably need to pull this info from my seminar material and include it as a blog article.)
As promised ..... http://cateritsimple.blogspot.com/search/label/Do%20The%20Math
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
I get what you are saying. 
I personally would never pay $100 for a birthday cake, but I would pay $200 for a pair of running shoes that are slightly more comfortable than a pair that cost $150, and my husband and I have spent $40 each on a steak on a few occasions, because we really, really like steak. Some people have no problem paying high dollar for an occasion cake, because having a really memorable, awesome cake is as important to them as a really nice dinner with hubby or a lighter pair of runners is to me. To each his own.
Just because you CAN be rude and nasty, doesn't mean it's called for.
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
I totally get what you're saying and completely agree. CCers often complain about how "cheap" some people are when it comes to cake.... but they're not necessarily cheap, they just don't care enough about cake to pay for a delicious, custom cake. They're not going to pay several hundred dollars for a cake, no matter how wonderful it is, because cake is not that important to them!!!
To be honest...people pay more for things that are important to them. I'm sure you've taken you wife out to eat a piece of steak that probably cost $30 to $40. To me thats crazy. But to my husband thats important and he'll pay the money for a little piece of meat. But like I said before, it's relative. In the grand scheme of things . Think about how may servings of cake you could get for one piece of steak. Shoot some people I know have speaks up to a hundred dollars on steak
I totally get what you're saying and completely agree. CCers often complain about how "cheap" some people are when it comes to cake.... but they're not necessarily cheap, they just don't care enough about cake to pay for a delicious, custom cake. They're not going to pay several hundred dollars
for a cake, no matter how wonderful it is, because cake is not that important to them!!!
The people that don't really care about cake will go to the grocery store for one and that is fine if that is what they want. However, there are people that want a beautiful custom cake that will take you several hours maybe days to finish and they don't want to pay more than $ 50.00 for it. I call these people cheap. You also may say that they don't know what it takes to make a custom cake but I tell you this: they know enough to tell the difference from a grocery store and a custom cake. They want something special, that is why they are coming to you instead of the grocery store.
Special, better, bigger, fresh, custom, etc...these things cost more. They don't expect to pay for a Escalade the same price they pay for a Kia ( thanks indydeby, I love that)..... just saying....
, but I would pay $200 for a pair of running shoes that are slightly more comfortable than a pair that cost $150,
Geesh! And it ticks me off if I have to pay more than $15 for ANY pair of shoes!
That's what my husband says every time I wear a pair out.
Tell hubby it's much cheaper paying for good running shoes, than paying doctors to fix your injuries from bad shoes.
That said, I'm a barefoot runner. LOL
Exactly. He stopped pitching a fit after he saw me in tears once over my shin splints when he bumped the back of my calves.
I've always wanted to try the barefoot thing! I have to have very, very light shoes or my knees and shins kill me. I have tender little weenie feet though. lol.
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