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Original message sent by BatterUpCake
Just curious who you are replying to...so your advice is to undercut other bakers? Tsk Tsk....
Undercutting other bakers is fine if you have lower costs and are serving a customer base further downmarket than those bakers.
Pyro is arguing against basing prices strictly off other bakers without consideration of your own cost structure or who you are targeting.
ACharging what your cake is worth based on your skill level is not undercutting... Obviously I am not going to charge $8 a slice for a child's simple BC piped birthday cake as compared to an elaborate wedding cake. But according to most here undercutting based on the fact that you have no overhead is not acceptable to them. I was repeatedly told this when they thought this is what I was doing when I was trying to explain that I charge based on my skill level and fair market value
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Original message sent by BatterUpCake
But according to most here undercutting based on the fact that you have no overhead is not acceptable to them.
That's because you do have overhead. No business has zero overhead.
Charging what your cake is worth based on your skill level is not undercutting... Obviously I am not going to charge $8 a slice for a child's simple BC piped birthday cake as compared to an elaborate wedding cake. But according to most here undercutting based on the fact that you have no overhead is not acceptable to them. I was repeatedly told this when they thought this is what I was doing when I was trying to explain that I charge based on my skill level and fair market value
No, it's not undercutting. Let's be clear what undercutting is. Knowingly charging less than baker down the street for the simple fact that you want the job, whether it is a profitable job to take on or not. Consistently underbidding when you hear of another decorator's quote. Saying you will "not be beat" when it comes to pricing. That's undercutting.
Charging what your cake is worth based on your skill level is not undercutting... Obviously I am not going to charge $8 a slice for a child's simple BC piped birthday cake as compared to an elaborate wedding cake. But according to most here undercutting based on the fact that you have no overhead is not acceptable to them. I was repeatedly told this when they thought this is what I was doing when I was trying to explain that I charge based on my skill level and fair market value
No, it's not undercutting. Knowingly charging less than baker down the street for the simple fact that you want the job, whether it is a profitable job to take on or not. Consistently underbidding when you hear of another decorator's quote. Saying you will "not be beat" when it comes to pricing. That's undercutting.
I could not use this because I am new at this and sloooooow..lol. If I charged even $10 an hour for my time my prices would be outrageous. Luckily I enjoy doing it and consider myself blessed that someone is willing to pay me for what I would love to do. I used to just make them for fun and give them away. I will get quicker with practice...I do enjoy reading all of these posts with different ideas. I am tryingto come up with a pricing page for my website...but am still doing research. I shopped around yesterday for a graduation cake I did and the prices were all over the page. But I found all but 1 charged more than I do and the bakery with an actual storefront charged double. Since many of these were probably unlicensed bakers I figure my price should be somewhere in the middle.
I consider this devaluing the market. Your still making cakes for fun since you have no over head like your local bakery does, and you don't even pay yourself a similar wage the bakery owner pays to hire a decorator. You're knocking the bakery owner and the cake decorator out of a job.
Well, I am running my business out of my home (legally) and I am in no way undercutting or undercharging for my cakes. I have done a complete market analysis of my area and am charging comparable prices to local storefronts in my area. I want to get paid what I am worth and what my cakes are worth. I am a legitimate business.
Just curious who you are replying to...so your advice is to undercut other bakers? Tsk Tsk....
No, in my eyes someone undercutting is someone who won't even pay themselves a living ( of at least minimum wage ) while producing anything and selling it on the market.
If you're running high volume you can buy in bulk and reduce your base ingredient costs. Produce faster, lowering your labor costs on the product. This is achieved with experience and better working methods. These things alone would allow you to have a lower sticker price on a similar item then a competitor. It makes you competitive, it's not undercutting.
If you can only provide a cheaper product because you don't account for your true costs and you don't pay yourself, then you're undercutting. Even if you run under a CFL you have overheads. Leave your over on at 350 for 10 hours a day for the next month, do the same with your lights and flush down a bunch of water, hook up a few more fridges. Let me know if your utility bill goes up. If you use 10% of your home square footage as your second kitchen, 10% your mortgage is for your business.
AI am not undercutting. This has all been discussed. My cakes are priced at market value. I make a profit but because I take longer I am not making $10 an hour. This is a sea horse. How could I be undercutting anyone if I am charging the same price. A baker that makes a cake in an hour and makes a $20 profit is making the same amount of$$$ just a higher hourly rate. It may take me 2 or maybe even 3 hours to make the same $20 profit. It's simple economics
ALet me make this clear!!!! In no way am I undercutting if I am charging the exact same as another baker. And I don't know why my autocorrect changed a sentence to "it's a seahorse". The comments I was making if anyone took the time to read the were referring to illegal home bakers.
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Original message sent by BatterUpCake
Let me make this clear!!!! In no way am I undercutting if I am charging the exact same as another baker.
What if the other baker is also undercutting market value?
AOh my fricken god people!!!! I checked on my last cake with SEVERAL bakers. I was slightly below the top tier bakery and they were booked til August. Why are you all sooooo convinced I am undercutting anyone.
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Original message sent by BatterUpCake
Oh my fricken god people!!!! I checked on my last cake with SEVERAL bakers. I was slightly below the top tier bakery and they were booked til August. Why are you all sooooo convinced I am undercutting anyone.
Original message sent by BatterUpCake
But I found all but 1 charged more than I do and the bakery with an actual storefront charged double.
AYes Jason but I LEARNED from that and have charged differently on the last 2 cakes I made and on the 2 I have due on Sat. I said in that post I was in the process of researching my pricing process. Did I not?
ABut I still cannot charge the same as the top bakery... They have made a name for themselves and have high demand and are booked months in advance. Just as most bakers will never be able to charge what cake boss dude does
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Original message sent by BatterUpCake
Yes Jason but I LEARNED from that and have charged differently on the last 2 cakes I made and on the 2 I have due on Sat. I said in that post I was in the process of researching my pricing process. Did I not?
Very true, hope this discussion has been helpful for you and you look into your cost structure in addition to the prices charged by competitors.
AIt has been helpful. That's what I'm here for to learn from hose experienced in running a business.
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Original message sent by AZCouture
You are stuck on this thing about being cheap. The opening line of your Facebook page says you are cheaper than the bakeries. Why? Why is that the image you want to present?
I hope that was tongue in check.............most of the photos on her face book page don't appear to be hers ;)
No, I didn't look very much further than her cover pic. Whoops. No, that was a genuine compliment. I couldn't bring myself to be helpful and snarky in my very next post. :D
because your comment was insulting and as Jason pointed out the difference is amateur doesn't get paid. You also thought the entire post was mine.
If your not ready to charge for your actual time because you're slow/new that's o.k., but that's the difference between being an amateur and being a professional.
I inform people those pictures arent mine...just starting out I don't have a lot of pictures and did not own a camera until I started this. My Iphone camera hasn't worked in over a year.
Don't understand why anyone would feel the need to be snarky at all...I have taken most of the advice that has been given to me here.
Oh boy....yeah, ok that's a whole 'nother can of worms, Batterup. You really should get all those pics that aren't yours out of your albums. That can cause you some serious trouble with the owners of the photos.
yeah you are probably right....although people use pics from Google searches all the time it is probably different if you use it to make money...I was hoping it would fall under the "Fair Use" doctrine since it is only a portion of a website. Well tonight I just need to go to bed!
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