I'm getting mixed signals from a couple different bakers on whether or not I should charge for the top keeper tier of a wedding cake? Some say that if they're serving it with the rest of the cake, you charge for it and it goes into the # of servings. Others say that if they're keeping it to have on their one-year anniversary, then you don't charge...
Any insight? I'm reallly confused... I want to make sure I'm consistent with everyone.
I don't do wedding cakes but from what I've read, regardless of how you explain it to customers, you should incorporate the cost of the "free" top tier into the cost of the cake. For example, instead of including the number of servings from the top tier into you total servings, you would increase your price per serving to include the cost of the top tier for your wedding cakes. That way you aren't losing money by giving away a free top tier but it isn't included in the number of servings calculated for the customer. Again, I don't make wedding cakes, but that's what I remember reading from the pros on here.
There is no industry standard across the board. However, you may want to research what other bakers in your area are doing so that you are competitive. Personally, I always charge for the top tier.
Me too..I charge for every serving so regardless whether they want to take it off and freeze it for the next year I always advise the bride that is will take away the servings from her guest count.She can then decide what to do...I can't imagine some decoraters who offer free top tiers or even anniversary cakes...seems to me you are losing money....but I guess if they hide the cost into the cake...
I charge for the top tier & tell them to serve it and then to call me 1 month before 1st anniv ersary & I give them a 6 inch free.
Cakegirl.. I suppose that brings another question to mind.
How do i start a conversation with other bakers or businesses asking them what they charge? There's a part of me that is afraid they're not going to be receptive to me asking questions about how they run their business and how they price their products out. I feel like they might give me some rediculous prices because they want to be the "better" place to go, and they don't want me to low ball them...
I just don't want to come across wrong, but I definitely want to comparison shop in the area. Any suggestions?
To find out your competition BUY A CAKE! You should know the taste as well as the price. You do not need to drive them crazy with questions, just ask a few and order a small cake. You can get friend to do it if you can't. How can you place yourself in the market if you have no idea what the market is? I always sound harsh, but business is business and cake is no different. Read some marketing books and figure this out BEFORE you start selling. You can't pull a price out of a hat and expect to be a success. And contrary to popular belief, you do not set your price based on your expenses. You can set your price anywhere you want, but the market will put you in your proper place, and you may not know you were wrong until it is too late.