clearly you did not respond to help someone -- your post comes off as bitter and vitriolic -- if that's how you want to be percieved--

 

just because someone doesn't do things they exact way we (we as in editorial 'we' not you and me) think then we get to jump 'em and point out their part in the 3000 food illness deaths a year --

 

and now op is a troll because she stood up for herself --

 

every person on here can huff and puff and blow the house down but the sale of a cake or several cakes to family or friends does not commit a crime does not establish a business and does not create a cause for op to be treated worse than the family pet --

 

uh ugh

candiandi -- you're welcome -- hope all goes very well for you in all your endeavors

 

♥

You can disagree all you want K8, and I'm sure whatever links you posted are interesting. I didn't say a person couldn't do anything they want. Doesn't make sense to me to work my butt off and make something by all rights people cannot afford, and purposely sell them cheap just to make a sale. I'd find other work if that was the case.

AInteresting though that the op gets to say ugcjill sounds like an idiot, and tells her to take her prude ass elsewhere, and that's perfectly acceptable. But ugcjill is the bad guy. Huh.

AI have no idea how you're calculating your prices, nor did I mention it at all. Keep on calculating, working on it, figuring it out. A lot of people don't even bother with [B]that[/B] much work, so good on you.

AI would be interested to know how you calculated your price and found that at $2/serving you are making a 50% profit. Where are you buying your supplies because I must be going to the wrong stores.

My buttercream starts at $4/sering. At that price I average 25% cost, 22% tax and 53% profit.

That said - since I operate from a licensed home bakery I don't have rent (I have to pay my mortgage anyway), and I don't include water, gas, electric or trash into the cost because frankly I am to lazy to keep track of how long my oven is on, how much water I used.... then separate that out of my bill from the utility company.

But if I had a separate structure that required rent, utilities, trash... I would barely make a profit.

As a side note, my prices are in line with the market I live in (storefront bakeries included). In 2015 I will up my price to $4.50/serving for buttercream.

AI thoroughly enjoy cake decorating...id consider it my passion. But it's a means to and end. The end being paying my bills and putting money in pocket. I find that this is where the disconnect is with most people. Cake decorating can't drive you when you're in business. You must always remember that MONEY is the goal. Passion for cakes doesn't keep your lights on. (This isn't directed towards anyone in this thread by the way).

A

Truth!!!!

AYou got that right! If you're in business, and making a profit ain't your number one goal....then why bother? Seriously, leave selling to people who are in it because their bank account depends on it.

home bakers/bakeries did not do that for mom & pop bakeries and cottage foodies will not do that for other home bakers

Bakers who are running a business generally will not play the undercutting game-- it's too much time and investment into the pans, and other equipment to charge too little for that cake and then have to be locked into low pricing when referrals start coming in.  The hobby bakers who charge so little will most likely move on-- they will get burned out doing a whole lot of something for nothing.  Be patient.  Be tenacious in your advertising and marketing.  You have to build a reputation and a following and that takes time.  Don't sacrifice your quality or your price.

Here's another pricing "trap."  I have a friend who has been very supportive in my cake business launching.  She's always telling me I need to charge more.  She has ordered cakes from me for some special events like birthdays, retirement parties etc., and I made the mistake of giving them to her nearly at cost (once below cost) for the prospect of referrals from her friends and family.  Example:  I made her a 10" 4-layer carrot cake with cream cheese icing and a 9" 3-layer German chocolate cake and charged her only $60 for both (the ingredients were more than half of that and I spent 4 hours making the cakes + the boards, boxes, and I delivered them).  Now she is ordering cakes for her other friends/family and telling me that she is buying the cake as her "gift" to the person-- expecting the same low price.  So instead of referrals, I am her personal baker while she gives my cakes away, and she is balking if the price does not reflect this discount she has been getting.  I have not gotten one referral from her as a result of this.

 

I'm going to resolve this by sending her "quotes" in the future that reflect my actual pricing and she can decide if she wants to pay it or not.  I don't want to loose a friend over this, but I'm not going to keep baking for nothing. 

A^ I had a situation similar to this with a family member. Found out they were sponsoring cakes for people, and of course it was family so I was cutting a discount. Didn't realize that I was actually losing money because she was not referring these people directly to me. It stung but lesson definitely learned.

Family and friends are your worst customers....even when they say they will pay full price, they either 1-cancel the order or 2-give you what they think they should pay for it on the day of pick up :/   For those who have this all wrong, I was asking if 2.00 per slice for a beginner was reasonable UNTIL I gain more experience and customers.  Those who are charging more than that I am sure have years of experience.  

if you are willing to raise your prices slowly from that point you'd be ok -- like for the nice sheet cake that is --the problem is that you'll acquire a customer base that expects that price and will stay with you for a time as you raise your prices but you run the risk of shedding your entire customer base as you progress and want to charge more --

 

so there's a lot to consider -- i mean if prices continue to rise on ingredients then you'd be in a pickle to raise them again for your increased expertise--

 

you need to launch under the right banner-- so a lot to think about

Heres my take on that. I don't think you should come into the market low just because you are a beginner. Best to not come into the market and compete until you feel confident to charge the  going rate. I rarely see less than $3.50 a serving. Id recommend wait until you feel like a complete, competent professional and then start the business. 

Okay well i'm actually right with competitors for this area...so I guess I will keep on what I am doing.  I am not raising my prices beyond my competition.  Bakeries in this area are right around 2.00 BUT they can get their stuff at wholesale prices ( I don't mean wal mart either)  The only upside to charging beyond competition right now is because people will pay more for something because they think it is the better product (i'm not saying mine is the best and I am not saying anything negative about my competition)  I think people expect me to be lower than my competition that has years on me, so that is where I get frustrated.  Thanks for all the feed back

How do I delete this thread because it seems as if I am being attacked for asking a simple question...I will charge 20.00 per slice till I make enough money to open a "real business" Hope that's the answer :)   So sorry for reaching out. 

A

No, no one is attacking you.Topics like this are prone to keep people replying, and it usually ceases to be about who started the thread, but rather "people in general"...if that makes sense. I haven't specifically referred to you since yesterday.

APretty sure Morgan meant you as in "anyone in similar situations", not [B]you[/B] specifically. And I agreed with her in a general way as well, not referring to anyone specifically. That's just how threads go, it's a perfectly good thread too, no need to delete. Good information for others to refer to.

Aso now her feelings and perceptions are not valid-- ouch

A

Or Morgan was [B]indeed[/B] answering you directly, I just had anyone in mind, so please don't take it personally.

A

Don't bother K8, don't even bother trying to make me look like a bad guy. I was explaining how threads go, not at all trying to minimize her feelings. Not even a good try, I have to say. I got three pm's about this post alone about your latest attempt at whatever it is you do. Ugcjills post was not at all uncalled for, yet you jump up to defend someone making borderline trollish comments, even cursing and telling another member to take their prude ass elsewhere? Literally lol K8...like I said, not even a good try. Desperation is a stinky cheese.

Hello Candi- I'm in western PA- Mount Pleasant. (and just to mention we do carry a full restaurant license for our cake studio). I  have no problem charging well over $2.00 a serving for my designs. Don't base your price on what other's are charging. It should be based on your time, expenses, and skill level. I understand that I may not fit within everyone's budget, but that's ok with me. Customer's who respect the time and effort that goes in to cakes will find you.