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Business By experimenting Updated 17 Jan 2013 , 4:40am by Stitches

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Stitches Posted 17 Jan 2013 , 4:40am
post #31 of 31
Quote:
Originally Posted by experimenting  I'm reevaluating my pricing structure and even though I will be sticking with price per cake, vs. price per serving, I would like to know where $12.50/person comes from. I've looked at several different cutting guides and the smallest # of servings for a 6" cake is 8 (Earlene's), which would come out to $9.38/serving for a $75 cake. Doing the math, I can see that 6 servings would come out to $12.50/serving, but what cutting guide does that come from?

I cut a 6" dessert cake into 6 plated portions, I don't use someone else's chart. I definitely am a heavy server, I'm also in the mid-west!! So often people tell me everyone went back for seconds........and I love to be generous. Even if you cut a 6" cake into 8ths, it's still not so easy getting people to pay $9.38 per person. Whatever, I'd like to get as much as I can per cake too........but I'd rather have the reputation of being generous and reasonable then tight and expensive, that's my personal business choice.

 

 "The customer might go with whoever says they can give them more servings or presented it so that it sounded like they were paying less per serving, even if it was for the same size cake."

I think most customers choose a cake based on who's going to make the best tasting and looking cake they can afford. If you come in at a reasonable price for a delicious cake that looks great, people don't bother to shop any further.  It's only when they are shocked by a quote that they question things and begin to compare prices. Ultimately I price special occasion cakes on the amount of time it will take me to make it and decorate it. My time is more expensive then flour, butter and sugar. So I'm reasonable on my base pricing, but my pricing rises by how much time it will take me to complete it.

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