How do you handle it? Does anyone else live in a small town, with a bad economy, flooded with other very talented home bakers that are in it as more of a hobby, and you’re more expensive? Is there really anything that can be done?
I’ve been considering lowering prices just a little bit because of this, because it’s really quite disheartening.
Anyone else find themselves in a situation that maybe they were just charging too much for their area? Surrounded by competitive, talented bakers? I tug the line between lower the prices, or staying where I am and practicing more towards the niche of cakes I want, while just sort of dealing with it, and hope that one day I have a good clientele, but I kind of feel like that’s wishful thinking!
A very, very, VERY, well known cake decorator just hung up her shingle. She made very elaborate and gorgeous wedding cakes. Problem was, she had stiff competition from other very talented cake decorators in and around her area. She sat down and costed out her cakes. And even tho she had a very exclusive clientele, she discovered she was hardly making a profit. Not even enough at the end of a year to buy more supplies!!!
It’s pretty hard creating a business, finding a customer base. It’s even harder when there are many around you that undercut your prices. My advice is to find a niche. Offer free cupcakes with an order. Or a discount on the next cake order. Or a cake raffle..giveaway. This might help generate some business. Whatever you do...DO NOT LOWER YOUR PRICES to compete. It will become a nightmare. It becomes impossible to start raising your prices. You will be working for nothing. And after awhile will regret working so hard for so little. Think of it this way. If you worked in a office, would you go to your boss and ask to have your paycheque reduced well below minimum wage??? I don’t think so.
You are smart asking, and maybe (sadly) seeing there may not be a market. A nice, custom cake is expensive and a luxury item. Not all areas can support that type of luxury. I could never afford to buy a cake I made (retail). Like building a Mercedes Benz dealership, they don't put one in every city or neighborhood, even though most people would agree they make a great, quality car.
Like Jchuck said though, be sure you are making a profit if you do it at all. Carefully figure out your costs and time commitments and see if it is worth it.
No, not really...sorry.
Here it’s more like - I don’t charge as much as some places. Ex: one place charges $70 for a 2 layer 6” with simple buttercream. And some people here actually think that unless prices are in that realm, the quality isn’t good.
Try figuring people out
Thanks guys! I am working towards sculpted cakes and modeling chocolate work, think Sugar Geek Show sculpted cakes. That is my ultimate goal. It’s just a little hard trying to get there in my town when are there are so many of us! I’m gonna continue to keep trucking on, because I love doing this, but it sure gets a little discouraging from time to time!
Thank you guys for your replies! I’m not planning on reducing my prices anytime soon, but it is tempting from time to time :(. I just needed a little encouragement, I suppose.
Yes KitchenSix we all need encouragement from time to time. I have a good friend who owns a small business here in my city. She was let go from her company, and took her severance money to start up. She’s so busy now, a victim of her own success. But, it took 5-6 years before that happened.
Good luck
yes inevitable with the glut of bakers now with cottage laws -- getting paid well for your baking/decorating is quite the feat --
best to you
K8memphis, we don’t have cottage law’s here in Canada. But we sure do have a boatload of unlicensed cake decorators on every corner it seems. It’s made it pretty darn hard for the legitimate licensed decorators to make a decent living. A good decorator friend has been relegated to sort of semi retirement, mostly part time. Been in business for 40 years, but she couldn’t keep up to the plethora of unlicensed hobby bakers. Basically took most of her business away. Sad. I’m a hobby baker, but I have never accepted a cake for money. With exception of close friends and family. Didn’t want to take business away.
yeah, jchuck -- the ones pressing so hard for cottage laws here didn't ever want to hear about the pandora's box effect -- a yellow ribbon tied around all the trees in the forest -- if there are basically no regulations how can anyone hope to compete -- I mean ten new bakers could open up by nightfall -- who knows -- it's pretty sad that brick and mortar bakeries are dinosaurs nowadays -- they at least used to be a way to make a living -- but with so many people charging next to nothing -- whadayah gonna do --
since i'm older and been involved for decades I've watched the decline -- and you're right -- it is sad --
does your health department or some other government agency ever clamp down on anyone there?
Oh yes K8memphis
If the health dept finds out your operating without a licensed kitchen, they will definitely close you down. There could also be a hefty fine too. Unfortunately, unless someone has to let the health dept know. Basically rat them out. As a customer, you may see a decorator on FB, but no way of knowing if there licensed. I mean, I don’t think customers would even think to ask?? Most, I think just assume you are. This cake friend I spoke of use to ck Kijiji, a selling vehicle, for under the radar decorators. Then she would call the health department and report them. That was a few years ago. Now, there are just waaaaaay too many. We do tho have 3 really good bakeries in my city. One a cake decorator shop, one 100% vegan cakes, cupcakes and other sweet treats...and they are amazeballs, and a family run bakery, which makes the most wonderful Joe louie replica. That’s strictly a Canadian treat. Probably close to your mud pies. Has a marshmallowy inside...sooooo yum
june, yeah I've never turned anyone in -- one time around here and in fact it was documented on one of the cake boards I was on at the time but anyway -- one cousin ratted out the other -- the first kicker is that the ratee had taught the ratter cake deco in the first place and started her business in her home kitchen -- which yes is illegal here -- they got themselves legal with a brick and mortar and their business (the ratee and her partner's) and was doing great -- I mean they ratted out several bakers -- five in total -- and then the other shoe fell and not only was the health department pissed at them (I guess for making them look bad amongst other things like creating more work idk) but the whole cake community here dissed them, the ratees -- they were FAMILY for crying out loud -- and they promptly closed down and sold their business lock stock and barrel --
I know people who used to be on here who liked to brag about turning people in -- no es bueno
Ya, what come around, goes around. Lotta family stuff goin on in that caking family eh!!! Geez!!! I know of 2 or 3 decorators here that I’m not sure they are registered or licensed. But unless I have 100% proof, and even then, just don’t think I could phone them in. One of them just recently immigrated to Canada, only about 3 years. Not sure they were a decorator from there original country. The way I look at it, if any situation arises where they get into legal trouble, without being licensed, you have no business insurance. That could prove to be very costly. Most home bakers assume wrongly that there covered under there existing homeowners insurance. Not so.
true but in the states I was insured even though I did not have a business license -- but I only did for friends and family from home
Well here in Canada, well in my province of Ontario, you must have business insurance. My esthetician and hairdresser both work out of there homes. And both were required to display there registration, health department approval and have separate business insurance.
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