Pricing Assistance For The Midwest

Business By Ayumi18 Updated 7 Jun 2017 , 8:03pm by kakeladi

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Ayumi18 Posted 6 Jun 2017 , 7:28pm
post #1 of 7

Hi everyone. My mother and I have been making sheet cakes for a while now but we have recently started selling tier cakes, cupcakes and have switched from hand piping decorations to using sugar sheets. We were wondering if you would be able to help us with determining whether or not our prices are fair. We live in the Midwest, Missouri to be specific, so we have never expected to charge what someone on the coast would. Whenever we have consultation the general response is either sticker shock or a "that's it?" so we've been questioning our prices for a while now.  For example, the baby shower cake was a chocolate and vanilla marbled sheet with a walnut filling. The elephants were printed a sugar sheet and the rest was airbrushed. We charged $80 for it. The two tiered cakes are 4 inches tall with two filling. They are a 6" and a 10" with a whipped cream cheese frosting. The decorations, except for the top cup, were made out of fondant and rice crispy. We charged $65. Finally, the quince cake was for 300 servings and we charged $450 plus $50 for delivery. Again, they were made with whipped cream cheese frosting and had a mix of chocolate and pineapple coconut fillings.  The cupcakes are $1.75 each with filling, fondant crowns airbrushed with edible gold paint and sugar pearls. We thought our pricing were fine up until now but we've started to doubt ourselves when we see such mixed reaction. Pricing Assistance For The MidwestPricing Assistance For The MidwestPricing Assistance For The MidwestPricing Assistance For The Midwest

6 replies
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kakeladi Posted 6 Jun 2017 , 7:58pm
post #2 of 7

Your price on the sheet isn't off by much.  It looks to me to be a 12x18x2 w/filling so maybe increase that price to about $100-$125.     Double the prices  of your tiered cakes.  You should be pricing those by the # of less than $3/$3.50 - maybe more. You only charged $1.50 per serving! :(   When I had my bakery in IN I didn't  charge for delivery (tiered cakes).   You don't want people picking them up and having it fall & set up is something you should incorporate into the cost so you know it has been delivered to customer in good condition. 

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Ayumi18 Posted 6 Jun 2017 , 10:42pm
post #3 of 7

Thank you for the input.  Actually, our full sheet measures about 18x26x3 and we have it for 90 servings. It's actually fascinating that you mention that we could increase it to at least $100 after we were shocked when had a prospective client say hadn't expected the full sheet to be more than $50. It was a bit offputting, to say the least. Yes, correct we do have tiers set at $1.50.Our main reason was that we weren't sure how to price it since we don't work fondant and we have don't have who to compare our prices. And the other reason is that we had difficulty with customers accept our last price increase two years ago when we increased it from 1.25/serving. We used to actually not charge delivery, then we used work it into the total and finally we took it out and tacked it as a separate charge after clients began asking for price breakdowns. 

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AAtKT Posted 7 Jun 2017 , 12:15am
post #4 of 7

You don't have to give them a price break down... No one at any other store breaks down the details that went into making my shirt or my steak... I get a total cost... (I understand a line for taxes)

You shouldn't be pricing your sheet cakes the same as the grocery store... 

You are losing money on the tiered cakes with charging so little... How much are you paying yourself an hour?  At $10 an hour for the time it takes me to just make 2 dozen cupcakes (start to finish, icing made while cuppies are in the oven, frosted with a basic swirl, packaged, and cleaned up) that makes it $30 in labor alone... that doesn't count for ingredients, supplies, overhead, and other expenses... add on the time it would take for me to make those crowns and air brush them... and that is if you are only paying yourself ten dollars an hour... 

Think about it...

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Ayumi18 Posted 7 Jun 2017 , 12:34am
post #5 of 7

Hi thank you for your input as well. Yes, even when I was typing out the descriptions I was getting the sensation that we are underpricing our cakes.confused With you breaking it down like that we definitely are going to have to look at making changes even it means losing some of our customers.  

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SandraSmiley Posted 7 Jun 2017 , 4:48pm
post #6 of 7

@Ayumi18 ‍, there will always be people who think your pricing is too high no matter how little you charge.  They have no concept of the cost or the time it takes to make bespoke cakes and they care not at all about the fairness of the transaction.  It is perfectly OK with them for you to actually loose money and spend days of your time as long as they get what they want.  You do not need those deadbeats in your life.  They will just cause you anxiety and you will be working yourself to death for nothing.  It may take longer to find the good customers, but it will be worth it in the end.  

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kakeladi Posted 7 Jun 2017 , 8:03pm
post #7 of 7

......... our full sheet measures about 18x26x3 ..............

 For that size size you should be getting NO LESS than $175.  As others have said you will never be able to please everyone w/pricing.   They have become used to your low pricing so of course they will bulk at any increase.   Seems to me I have read on this and other sites that one in business should increase their prices by at least 5% per year to off set any rise in ingredient prices you encounter.    BTW: your work is very nice - neat and well done :)

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