So, I'm going nuts seeing other cakers in my area. I just looked at one Facebook page where the owner does some of the sloppiest work. Cupcakes iced unbelievably messy, cakes that a monkey couldn't ice that bad. I get that she obviously is no competition for me, but I really want to shake her and tell her that she needs practice before she presents her products to the public looking like they do. Not to mention that her prices were somewhere around $1.25 per cupcake. Maybe that's what they're worth, but it's still irritating.

The other girl's page I saw is selling cupcakes for $1 each. Cake pops for .50 EACH. Cakes, I think, were like $1.50 per serving!! I am so frustrated to see prices that cheap. I charge $3.50+ per serving because I have actually done my homework, know my costs, understand my surrounding market, and want to make money. The crazy thing is, the second girl graduated from culinary school and apparently still has no grasp of costs and market. Don't they teach some sort of business in school? When I was in beauty school, I had some business classes I had to take to understand my business.

I wish I could tell these people how much they are hurting the people who are serious about making a viable business. Grrrrr!!

Am I wrong to be frustrated? There are a few pro cakers with storefronts in the area (none in my particular town, but a few nearby), but it seems like everyday I hear about another illegal caker in town who charges too little. Meanwhile, I get zero confirmed orders for weeks because people don't want to pay my prices. So-and-so down the street can do it for a dollar a serving!

OK. I feel better. Just wanted to vent to others who understand.

Totally get it .

You are SO not alone! 

I don't sell my cakes but I know how much I spend on ingredients.  I just made some cake pops to bring to my niece's graduation party and I would not sell them for .50 each.  Too much expense and time involved in making them.  These people cannot be making a profit and I don't think they can afford to keep selling their goods for that price for very long.  Even if they are using a mix which I believe ends up being cheaper than scratch baking, I still can't see much profit.   If I ever decide to actual turn this hobby into a business, I know I cannot afford to sell them for that price.  

AI do everything I can not to do cake pops! What a chore! And to think of charging .50 each is crazy!

AI'd rather have no orders for weeks than spend every minute of the day doing orders that I under priced so badly that it's costing me money to make the darn things.

AYeah, I hear crickets pretty often after I quote a price. I'm OK not being booked solid with cheap cake orders. I need the money, but appreciate the value of my time and efforts.

AReport them. Now that there is a CFL in CA there is no excuse not to be operating legally.

BTW I just wrote an article about pricing, market value, and economic damage, the link is in my signature.

AReporting them to the health department isn't necessarily the solution. I'm sure a few cakers are operating legally. The problem is in pricing with most of them. The health department doesn't manage that aspect. It's like we need some entity to go around educating people about business/expenses. Jason, can you take a road trip north?? I saw a lady selling decorated cakes starting at like $20 for a 8" round. Of course, I also saw in her *very professional* pictures, cans if Betty Crocker canned frosting, tubes of writing gel (or whatever it is), messes all around her cakes, and a dusty TV. I can't believe anybody could take this 'business owner' seriously. But if they're legal as far as the health department goes, what are you gonna do?

If I were you, I would just order up about 200 cake pops, in various colors and flavors, packaged individually, with a quick turnaround and donate them to a nursing home.  And be a real PITA during the whole order.  Maybe ask if you could have a tasting first to make sure the cakes are moist??   Maybe she would decide to raise her prices after that.

Liz
 

ALiz, Brilliant!

ALiz - I like the way you think :-)

Thanks Delicious Desserts and Evoir!  Guess I also should have thrown in to ask for a quantity discount, because it has to be cheaper to get 200, doesn't it??

Liz

A

It's not a perfect solution, but it will weed out some of them, since many people don't even know that you need to be licensed in the first place.

It's like we need some entity to go around educating people about business/expenses.

You may want to talk to the SBA, your local SCORE chapter, or other local business group and explain your situation, they may be able to offer a free business course which you could then publicize. After all, who doesn't want to make more money?

A

Also, you will be telling many people about where you got the cake pops, so that free advertising should be worth an additional discount.

AAnd cake pops are just made with scraps that you have lying around, plus I'm sure its something they just love to do right?

ALiz, what a wonderful idea!

IAmPamCakes: All tongue-in-cheek kidding aside, I wonder if these businesses have actually sold products at these prices.  That is why I wonder if a large, unreasonable order would snap them into the reality of how much work all this is for a relatively small amount of money.

When I first opened my drapery workroom I took a large order for 60 HUGE drapery panels.  Priced it so low (out of ignorance) that my mother and I worked like slaves for about 3 months.  Learned the hard way on about day 2 what the selling price should have been, and it was a lasting lesson that has stayed with me through the years.  I priced my work like a professional on every job after that. :)

Liz

AThere are about two or three so-called bakeries popping up here every week since they passed the cottage food law a couple of years ago. Coincidentally, a lot of the people I know who work at venues are telling me a lot more cake disaster stories. It's a pain in my butt, but there's nothing you can do about it. Just keep on keeping on. My business hasn't suffered because I've been around for so long I get most of my business from referrals, but it's interesting to watch the new people come and go within six months or so.