Budget

Business By karess Updated 2 Oct 2013 , 6:04pm by scrumdiddlycakes

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karess Posted 2 Oct 2013 , 12:32am
post #1 of 8

Sorry in advance if this gets too lengthy...

 

I got an email this past weekend from a woman who wanted to order a, "custom yellow and grey elephant baby shower cake" for a fellow coworker (that can feed 15 people). I let her know what my prices were ($3 per serving for buttercream ; $4 per serving for fondant). She emails me back saying thanks but that she thinks I'm out of her price range. I email her back to ask what her budget is and that I can't promise or guarantee anything but that if she lets me know what it is then I can possibly work something out. She emails back saying thanks and that she appreciates my help (I haven't really done anything but okay..) and that her budget is $35.

 

Would it be extremely terrible of me to just tell her know that at that budget I can't make her a cake? I get that people have budgets but I do need to make some sort of profit at the end of the day. Any advice on how to deal with customers with budgets? Do you guys work out plans with customers who have budgets?

7 replies
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jason_kraft Posted 2 Oct 2013 , 12:46am
post #2 of 8

AYou could reply back saying that the lowest price you could offer (for a basic BC cake that represents your minimum price) would be $X, and the price for her design would be $Y. Her budget should not affect your pricing, once you present your prices it's up to her whether or not she wants to increase her budget.

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kikiandkyle Posted 2 Oct 2013 , 1:05am
post #3 of 8

AI agree, let her know what you can make for her budget, smaller cake, less detail etc, and then let her know what the price would be for what she asked about and maybe she can find the extra $, or she might be happy with the smaller less detailed cake.

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darkchocolate Posted 2 Oct 2013 , 10:35am
post #4 of 8

I forgot where I saw this cake, but I thought it was cute, being that it is a half a cake.

 

I joked with my daughter, I guess their budget only allowed for a half a cake.  In all seriousness, I know you still have to bake an entire cake and just cut it in half.

 

Unless you take and cut an 8" or 9" round in half and stack it like this.  I guess I all depends on your recipe and how much you have to make.

 

 

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AZCouture Posted 2 Oct 2013 , 4:33pm
post #5 of 8

$35 is a Walmart budget. How any custom decorator could even think of accommodating a budget like that is nonsense. Honestly, there's nothing wrong with declining an order you won't make any money on. I won't work for less than $150, and sometimes that's not enough when you figure out all the time from first contact, to completion of project. And everything in between. A LOT of work. 

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rica827 Posted 2 Oct 2013 , 4:48pm
post #6 of 8

Quote:

Originally Posted by AZCouture 
 

$35 is a Walmart budget. How any custom decorator could even think of accommodating a budget like that is nonsense. Honestly, there's nothing wrong with declining an order you won't make any money on. I won't work for less than $150, and sometimes that's not enough when you figure out all the time from first contact, to completion of project. And everything in between. A LOT of work. 

I don't know you, but can I just come and shadow you for a few weeks??  I want that kind of sass! :)

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AZCouture Posted 2 Oct 2013 , 4:51pm
post #7 of 8

AThere's just.no reason for that kind of work, unless you have a big retail operatio and crank out simple stuff like that all day. Even then, that's pretty cheap, you know?

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scrumdiddlycakes Posted 2 Oct 2013 , 6:04pm
post #8 of 8

You told her you couldn't promise anything, so of course you can tell her no. Honestly, I can't even make a cake for 15 people and not lose money charging $35 for it.

 

I have a min amount for orders as well, it really makes life so much easier. I will occasionally break my own rule for repeat customers, but they are used to my prices, so no sticker shock, lol.

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