Pricing Confirmation

Business By leily Updated 17 Oct 2005 , 12:22am by traci

leily Cake Central Cake Decorator Profile
leily Posted 11 Oct 2005 , 3:04am
post #1 of 25

OK, I have a potential customer interested in my baked goods. This is my first LARGE order of anything comparible to this. A couple owns/opperates an annual craft "christmas cottage" They have local crafters come in and display their items and they run the cottage and the crafters do not have to be present this way. Well this year is their 25th anniversary. This will run for 9 days. November 10th to November 19th. So I am trying to get a price this week so I can start on it as soon as possible as my schedule only allows me a few 2-3 hour nights a week to work on this.

They want cake on first night for open house with crafters. And cookies for the other 8 days. They will average 2-3000 people in the first 2 days they are open.

This is their request:
Cake for 100 ppl minumum.
100 Dozen cookies minimum. (yes I almost fell over when they told me this, thank goodness I was on the phone and not in person)

Here is what I have come up with to present them:
3 - 11 x 15 sheet cakes - BC icing (Two will be scored for cutting and one will be decorated)
12 Dz. - Chocolate Chip cookies
12 Dz. - Sugar Cookies
12 Dz. - Snickerdoodle
12 Dz. - Oatmeal
12 Dz. - Peanut Butter Balls (Buckeyes)
12 Dz. - Rice Krispy Treats
12 Dz. - Dipped Pretzel Rods
12 Dz. - Peanut Butter Fudge

I thought the last Four things might be nice as something different but
still along with the holidays. I am also thinking of making Almond bark with pepermint in it-VERY easy, and good too, always a favorite with our families.

Is there something else that would be easy to make, cost effective, and be along the christmas theme?

They agreed already to let me advertise with all the deserts throughout the week, and since it is such a large order I have already decided to give them a discount, just haven't decided how much yet.

So any ideas on what you would charge?

I have an idea, but would like to know where my idea falls with everyone elses, expecially with it being such a large order and a GREAT advertisement opportunity.

Thanks for any suggestions and help on this one.

Leily

24 replies
MrsMissey Cake Central Cake Decorator Profile
MrsMissey Posted 11 Oct 2005 , 4:14pm
post #2 of 25

Wow what a great opportunity for you! You have a great assorment to offer them as well. I kinda hate to stick my neck out here but I am curious as to what others come up with so, .... I come up with a total of $1074....precisely!! Am I any where near your figures?

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PinkPanther Posted 11 Oct 2005 , 9:48pm
post #3 of 25

I thought of a couple of things that are easy to make: brownies (Ghirardelli double chocolate mix is the best IMHO) and toffee, the kind that has saltine crackers on the bottom. Always a hit! Let me know if you need the recipe! thumbs_up.gif

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ThePastryDiva Posted 15 Oct 2005 , 12:58pm
post #4 of 25

How about some easy truffles....2 parts candy melts to one part heavy cream, a little butter and flavor.

boil the cream add to chocoate and butter and flavor, whip till cool. put in fride to firm up a little,

scoop out with melon baller and roll in cocoa powder.


Also...how about some cake balls?--lol rum flavored for the holiday? you can make a batch and put them in a big bowl and scoop them out with a small icecream scoop...dip them in whatever coating and..

you can add a little royal icing decoration that you can mail order...

little pointsettias, candy canes, snowflakes?

keeps up posted and good luck!

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leily Posted 15 Oct 2005 , 8:03pm
post #5 of 25

OK- after debating about this quite a bit here is what I will be offering them. I will be giving them until Tues Oct. 18th to give me a definite.

Cake:
2-12x18 (2"x2" pieces-108total) Both Scored with 6"x8" space in middle written on. 1 White- 1 chocolate both Buttercream icing. On each "scored" piece will be a christmas light bulb, with a string tying them all together from peice to peice.

Other Baked Goods:
12 dz. CC cookies (all cookies will be a 2T scoop)
12 dz. Sugar cookies
12 dz. Snickerdoodles
12 dz. Oatmeal Cookies
12 dz. Peanut Butter Balls (all dipped in Chocolate-I use the almond bark)
12 dz. Rice Krispies (2"x2")
12 dz. Dipped Pretzel Rods (half dipped then drizzled with Red/green)
12 dz. Peanut Butter Fudge (1"x1" squares)
5 dz. Toffee (Recipe from Pink Panther)

Prices:
Cake: $33.00 each
Baked Goods: $5.00 Dz.

Total $566.00

I figured usually I would charge more, however with the large amount of business and being able to "advertise" for free for these 9 days, I would knock off a little. I figured all of this up seperately and figured I would normally charge about $700.00. I know this is quite a bit lower than MrsMissey. But I would like everyones opinions before I quote them the price, if you think it is to low?

As many have said, this pricing thing gets me everytime. I am actually prepared to not get this customer because of cost. However If for some miracle they decide to go with me I want to make sure it is worth my while, and I am not loosing money.

One more thing, hehe. how in the WOLRD should I transport/store these? I plan on making two deliveries since it is a 9 day long event. One at the beginning and one in the middle. Will any of this be good for the whole time, so I don't have to try and make it in two batches?

Again, I appreciate everyones help. Any advice/knowledge/encouragement is appreciated.

Leily

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Nitu Posted 15 Oct 2005 , 8:09pm
post #6 of 25

Leily,
I can't help you but after reading your post I am just happy for you and wish you luck.
Also waiting for your result and pic's icon_smile.gif.

All the best.

Nitu

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aliciaL_77 Posted 15 Oct 2005 , 8:10pm
post #7 of 25
Quote:
Originally Posted by PinkPanther

I thought of a couple of things that are easy to make: brownies (Ghirardelli double chocolate mix is the best IMHO) and toffee, the kind that has saltine crackers on the bottom. Always a hit! Let me know if you need the recipe! thumbs_up.gif




I just finished an order similar to this last week.. I did brownies, pine bark (like pinkpanther said w/ the saltines) chocolat chip cookies and butter cookies made from what is called a "Master cookie mix" that you can make all sorts of cookies from.. I can email you the recipe if you would like icon_biggrin.gif

I charged $10 for a tray with 1-1/2 doz and $20 for trays of 3 doz. HTH

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okieinalaska Posted 15 Oct 2005 , 9:05pm
post #8 of 25
Quote:
Originally Posted by leily

OK- after debating about this quite a bit here is what I will be offering them. I will be giving them until Tues Oct. 18th to give me a definite.

Cake:
2-12x18 (2"x2" pieces-108total) Both Scored with 6"x8" space in middle written on. 1 White- 1 chocolate both Buttercream icing. On each "scored" piece will be a christmas light bulb, with a string tying them all together from peice to peice.

Other Baked Goods:
12 dz. CC cookies (all cookies will be a 2T scoop)
12 dz. Sugar cookies
12 dz. Snickerdoodles
12 dz. Oatmeal Cookies
12 dz. Peanut Butter Balls (all dipped in Chocolate-I use the almond bark)
12 dz. Rice Krispies (2"x2")
12 dz. Dipped Pretzel Rods (half dipped then drizzled with Red/green)
12 dz. Peanut Butter Fudge (1"x1" squares)
5 dz. Toffee (Recipe from Pink Panther)

Prices:
Cake: $33.00 each
Baked Goods: $5.00 Dz.

Total $566.00

As many have said, this pricing thing gets me everytime. I am actually prepared to not get this customer because of cost. However If for some miracle they decide to go with me I want to make sure it is worth my while, and I am not loosing money.


Leily




I know you said you were going to give a discount for advertising, but your price doesn't seem like it's high enough to me. You might just sit down and figure out just your cost of ingredients and see if it seems like you are making enough after subtracting that. : ) Good luck and I hope you get the account. icon_smile.gif

Do you have the cake matrix?? You might download it and it can help you with pricing cakes. : )

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psurrette Posted 15 Oct 2005 , 9:26pm
post #9 of 25

I agree with the last post. You are not charging enough. Dont under sell yourself and your talent.

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okieinalaska Posted 15 Oct 2005 , 9:27pm
post #10 of 25

I just really don't want you to agree to such a low price that you hate yourself for agreeing to do it. This is a LOT of work, all those cookies alone are just making my head swim, LOL.

Best wishes! : )

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ThePastryDiva Posted 15 Oct 2005 , 9:27pm
post #11 of 25

cookies alone go for about $10.00 a decorated pound...I believe a 10-25% discount is usual?

Also usual for a commission fee?

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okieinalaska Posted 15 Oct 2005 , 9:36pm
post #12 of 25

I think the cookies are to be undecorated?

a 12 x 18 cake is big, even if you went by $1 per serving, that would be $54 per cake.

Can anyone check the cake matrix? I am not at home to calculate it on mine. : )

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leily Posted 15 Oct 2005 , 10:09pm
post #13 of 25

Well, first off, thanks for all of your input, I really appreciate any extra help.

I do have the Matrix, and it actually is giving me less servings that what I will be getting out of the cake (which is fine-just used it as a starting point)

And to clarify two things. The Sugar cookies are UNdecorated-if they wanted them decorated oh my they wouldn't want to hear from me again, I can guarentee it! Also their will be no commision. They are buying them as a hospitality item to serve to their customers as they come through. So they will not be charging anyone for them.

Here is my revised price list (after reading post and talking to my BF-i'm not sure he will still want to live with me after this order LOL)

I realized that at min I would normally charge 1 per serving-so a minimum on a regular order would be $1300.00 (i almost fell off the chair when this thought occured to me-not only for the price but for the amount I may be making) So since some of these items are small I wouldn't necessarily charge $1.00 a piece.

After doing some more thinking/figureing of ingredients/time/and time available I come up with.......

*drum roll please*

$700.00

I am sure this is still less than what most of you would charge but do you think I am still underselling myself? There are some other reasons I am giving a larger discount than normal-personnal aquaintances. However I still would like your opinions on what you would charge.

So take it away again, guide me in the right direction icon_smile.gif

Leily

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ThePastryDiva Posted 15 Oct 2005 , 10:25pm
post #14 of 25

I made the statement about commision for the people that have or want "semi" commercial accounts.

I am planning to do cookies with a small percentage off in exchange for the cake referals..lol

I still think that you're undercharging...even a starbucks cookie is over a buck...

I think the last time I bought a Starbucks cookie I paid about...$1.99? but that was a decorated cookie...

Next time I go by I will look at the price of the regular cookies.

Even the cookies we made for the Katrina Fundraiser were being sold for 2 dollars and they were only chocolate chips with macadamia nuts..

and the brownies sold for 2 dollars also.

But, if $700.00 is a comfortable amout to pay yourself for all that work, then by all means go for it.

A good way to price you items is to figure out the cost to make a serving multiply by 2.5 or 3 ...that's the price per item.

Then you multiply the price per item by the number of servings you need...this is where the % discount should come off from.

Hope that will help.

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okieinalaska Posted 15 Oct 2005 , 10:42pm
post #15 of 25
Quote:
Originally Posted by leily



I do have the Matrix, and it actually is giving me less servings that what I will be getting out of the cake (which is fine-just used it as a starting point)


Leily




Check the formula for figuring out the servings, I thought I read in the post here at CC that the servings was off and needed to be updated. : )

I think this is a much better price. Still might be low but you are getting advertising out of it. : ) How are you going to package these up??

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KayDay Posted 15 Oct 2005 , 11:00pm
post #16 of 25

Just a thought I know you already have your list in order...but gingerbread men would be very holidayish and cheap to make too! Also....I think 700.00 is a little better if the advertising means most to you but I am sure you aren't turning a big profit.

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leily Posted 16 Oct 2005 , 3:19am
post #17 of 25

ok, so most of you say that I am still charging to little, which I understand. BUT... what would YOU charge? I am looking for where you would even begin before you give a discount. So if anyone can actually throw out some figures I would appreciate it.

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traci Posted 16 Oct 2005 , 3:44am
post #18 of 25

Hi. I have been reading your post. I came up with this figure on what I would normally charge before the discount...$1,110.00. Now...with the discount...$807.00. For sure...you should not short yourself on the 2 cakes. You should charge at least 100.00 for those(50.00 each). I would normally charge 10.00 a dozen for the cookies. I think your discount should be 7.00 a dozen. I think they are still getting a great deal...this will be A LOT of work for you and TIME!!!

Anyways...congratulations on this opportunity and I am sure you will get lots of business !!! Best of luck!!! icon_smile.gif
Traci

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okieinalaska Posted 16 Oct 2005 , 5:02am
post #19 of 25

Fair enough, here is my take on it I am home now so I have time to play. icon_smile.gif

I haven't sold many cakes or cookies (haven't been lookin' too)
but if someone where to ask me:

First:
How big is your oven? My oven isn't that big, I can do about a dozen cookies at a time so this would take about 8 minutes (I am guessing) per dozen so a total of 800 minutes this would be 13 hours of baking! Hopefully your oven is bigger than mine. Hence in reality I would be to big a chicken to take on this order. : )

$7.50 per dozen cookies $750 total (the price for fudge or chocolates would be higher as the ingredients are more expensive so this is cookies only with no decorations)

The 12 x 18 cakes $54 each (I haven't sold a lot of cakes, not much experience but I think my decorating is decent, and for each slice to have a piped bulb this seems more than fair, $1 per serving) ingredients, boxes, boards, foil and other misc stuff eats away at this pretty quickly for me...

So my total so far would be: $858 but... I haven't figured out how I would box up the cookies so this doesn't include cookies boxes if those are needed.
Or maybe trays would be easier but I don't actually have trays or have a spot to get even those plastic trays...(unless costco carries them??) so that's about as far as I can get without figuring out how to get the cookies to the location. icon_confused.gif

And if I needed to deliver them and set them up I would add on extra for those. How close are they to you? I might be willing to donate this for such a large order but would I need to set up and decorate the tables or would they be already ready? So much to think about! icon_lol.gif

After sitting down and really looking at all this, yikes, I would never be able to do such an order in my house. My kitchen is soo tiny, I hardly have room for a cake and a dozen cookies, I can't imagine where I would put 100 dozen. icon_eek.gif

Oh and as for a discount if it where me, I would already feel like I was doing them the cheapest I was willing to do them for. So no discount....otherwise I would hate myself, my family would be mad at me for being so crabby, I would be bald form pulling my hair out and slobbering in the corner from lack of sleep. (which probably would all be true anyway)

Best wishes, and don't stress too much. Only you can decide what is the right price for you. icon_smile.gif

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leily Posted 16 Oct 2005 , 2:24pm
post #20 of 25

Thank you!!!

My original pricing was near Traci's. But I just wasn't sure what would be a fair discount. The more I think about this order, the more I am stressing over it. How am I going to do it. So thank you to everyone. I quoted them $900.00 So if I do get it I am at least making something for all my stress.

They are about 35-40 miles from me, however I am already in their area the day that they need me to deliver, so I am only charging them 1/2 of my delivery fee. And they will have a table set up for me.

Thank you thank you thank you for everyones help (sorry I got kinda short with my last post, it is a stressful week in our house for medical reasons and then figuring this order, and not getting sleep.... well i'm sure you all understand.)

I will keep you updated!

Leily

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MrsMissey Posted 16 Oct 2005 , 2:39pm
post #21 of 25

My original post quoted $1074, so I think that your updated price of $900 is a fair one..and much more reasonable!! Good luck to you and happy, happy baking!!

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ntertayneme Posted 16 Oct 2005 , 3:01pm
post #22 of 25

Best of luck with your order... Let us know how everything turns out icon_smile.gif

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okieinalaska Posted 16 Oct 2005 , 6:40pm
post #23 of 25

I hope you get it and it leads to lots more business! icon_biggrin.gif
Did they say how long till you would likely hear back?

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melodyscakes Posted 16 Oct 2005 , 6:49pm
post #24 of 25

yes, let us know what happens with this order!!!!! i wish i could get a large order like that.....what an awsome opportunity!!
good luck and happy baking!
melody

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traci Posted 17 Oct 2005 , 12:22am
post #25 of 25

Good luck!!! I think you gave a very fair price. Let us know what happens!!! icon_smile.gif
traci

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