Are My Prices Too High???

Business By mmstormont Updated 11 Feb 2007 , 5:39am by alicegop

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mmstormont Posted 5 Feb 2007 , 6:00am
post #1 of 11

O.k., so for the 4th time this month (technically last month, I'm stuck in January...) a bride has just disappeared on me. I'm scared they are getting sticker shock. I don't understand, b/c my prices are about a quarter lower a serving than the other cake lady in town (yes, I live in a smallish town of about 40,000) But anyway, everything is going fine, cake tasting goes well, consultation goes well, then they just vanish. I even emailed one and asked her if there was something she was unhappy with from our appointment, she said no, but I could tell I was getting the brush off you know? I think one thing that my put people off is the fact that I am 26 and they assume I don't have very much experience (TEN FREAKIN YEARS!!!) Any way, my prices are as follows:
Wedding Cakes:
Buttercream: $3.00/serving
Fondant: $3.75/serving
Deluxe Cake Flavors: Add $.25/serving
Neopolitan Rum Cake: Add $.75/serving
Filling: Add $.50/serving
Fondant Bows, Flowers, Embellishments: Priced in Person
Handmade flowers and decorations: Priced in Person
Candy Clay Sculpted Embellishments: Priced in Person
Fresh Fruit & Sugared Fresh Fruit topping: Priced in Person (seasonal)
Grooms Cakes:
Heart Shaped Groom's Tuxedo Cheesecake: $45.00
Basic Flavor Sheet Cake: $45.00
Deluxe Flavor Sheet Cake: $55.00
Specialty Cakes: $65.00 and up
Special Occasion Cakes:
Buttercream Frosted Sheet Cakes:
1/4 Sheet: $25.00/Basic Flavors, $30.00/Deluxe Flavors
1/3 Sheet: $35.00/Basic Flavors, $40.00/Deluxe Flavors
1/2 Sheet: $47.00/Basic Flavors, $52.00 Deluxe Flavors
2/3 Sheet: $65.00/Basic Flavors, $73.00 Deluxe Flavors
Full Sheet: $77.00/Basic Flavors, $85.00 Deluxe Flavors   
Buttercream Frosted 8" Round 2-Layer Basic Cakes: $18.00 and up
Kids Character Cakes: $20.00 and up
Doll Cakes: $35.00
Topsy-Turvey Cakes: $65.00 and up
Cupcakes: $16.00 and up per dozen
Specialty cakes: Priced in Person
Who knows? I'm new at the business end of this, my goal is to be known for my great cakes, not my great bargains. I'll work with people you know on pricing, but geez, I'm not a grocery store!!! Maybe I'm just taking it too personally since I haven't been actually "selling" cakes for too long. I don't know. Anyone have any thoughts? Sorry about the 400 page post... icon_smile.gif

M

10 replies
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cupcake Posted 5 Feb 2007 , 6:47am
post #2 of 11

I think there are many things to consider. Do you have a store front or baking at home? Out of the 10 years you say that you have been decorating, how many of that is actual advertised full fledged paid orders? How many bakeries and private individuals making cakes in your area? Do you have references to give people on your wedding cakes? You have to be able to get your foot in the door so to speak. Some of these other people that you speak of may be well established and have alot of repeat and referral business, and that is something that is hard to overcome. People are strange about things. If you are a home baker, do you have a professional setting to do your tastings, or do you have kids running around, and the house messy, and a hubby sitting on the couch munching on chips and watching T.V. Do you get what I mean? Peoples perception of things are often very real, so you may want to change your stradgedy some. Don't act desparate, be professional and self-confident. There is nothing wrong with a follow-up mail, that you enjoyed meeting with them, and certainly if there were any other questions to feel free to contact you. As far a your pricing, I would not know since your area may warrant your pricing structure. Anyway, this is just a few things to consider.

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mmstormont Posted 5 Feb 2007 , 8:50am
post #3 of 11

1) Baking from home.
2) "Advertised"? Just the past 6 mos. Steady paid orders by word of mouth? 4 years. I worked in a bakery doing decorating for 3 years as well, the rest was just me at home.
3) One lady who has a store front, some grocery stores and less than 5 homebakers that I am aware of in the area.
4)Yes, I have references.
5) I have an extremely professional setting at home for my consultations, I graduated with a business degree, I am aware of how to make a good first impression at a meeting and how to conduct the meeting thereafter! icon_smile.gif
6) I have followed up with all of them.
7) I priced my cakes just under what the norm is around town.
I guess the main thing that drives me crazy is that they have seemed really, really excited, one brought me by a cake picture a few days after the consultation because she had changed her mind about the theme, then they just vanish! If they decided they weren't interested, I wish they would just say so! Oh well, I'll keep trying.

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peg818 Posted 5 Feb 2007 , 10:20am
post #4 of 11

I think most go to a home baker looking for a bargain. As a home baker myself, i am no bargain. But I'm not that expensive either. What burns my britches is that people around here will call the grocery store before they call me. The grocery store is selling for 2.75 per serving, and the servings are very small, smaller then normal. They state on their brochure that an 8in round serves 29 people i still don't know how they get away with that.

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playingwithsugar Posted 5 Feb 2007 , 10:59am
post #5 of 11

Unfortunately, there is no hard and fast rule for how many servings a bakery can advertise their cakes will slice to.

I agree that people go to home bakers thinking they will get a better deal. I do not know where you are in upstate NY, but if your price is comparable to that of other bakers, and you have references, experience, etc, then by all means, stick to your prices. Most of your business over the past couple of years has been word of mouth, right? Well, word of mouth is a sword that cuts both ways. If your cakes were ugly, if they tasted nasty, nobody would be coming to you in the first place. Just because they do not book does not mean that they did not like your product.

Theresa icon_smile.gif

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indydebi Posted 5 Feb 2007 , 2:31pm
post #6 of 11

If you think they are calling the bakeries and finding lower pricing after they talk to you, perhaps you can, in the words of Barney Fife, "Nip it in the bud!" while they are there with you.

I encourage my brides to comparison shop. I phrase my wording such as "as you do your comparison shopping....." and "....I will email you the proposal so you can print it out and lay it next to the other quotes you have".

So perhaps as part of your sales tools, you can head them off at the pass by pointing out "Yes, you will find bakeries with prices lower than mine. But won't you WON'T find is ...... " (made from scratch, custom designed, freshly baked, etc.) When you point out the pricing differences yourself, you take away their argument.

Toward the end of the appointment, after you give them a cost or an estimated cost, ask them "Does this fit in your budget?" Brides are hesitant to tell you exactly what their budget is, but they are likely to give you a yay or nay on whether your number fits in their budget or not. This question will at least give you an idea if the money is the issue, although your prices doen't indicate to me that it should be (if they are realistic and informed brides).

With your business background, I'm sure this is an unnecessary question, but how are you concluding the appointment? It's a fine line between pushing for the sale and being too pushy for the sale. You want to be sure that you are asking for the sale in some form, but brides are very turned off by a "pushy" salesperson who wants them to commit right then and there. They are dealing with a number of vendors and all of them are pushing for immediate decision. As part of my comparison shop speech, I remind them ".....you are spending a lot of money on this event so you want to be very sure and very confident of the decisions you make."

I'm not claiming to be an expert at this stuff, but I have about a 98% booking rate from my appointments, so whatever I'm doing is working for me.

I'm sure it will get better for you. Your experience and talents will shine thru. Hang in there! thumbs_up.gif

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CakeParlour Posted 5 Feb 2007 , 5:36pm
post #7 of 11

I tell my brides that since I am a one-person establishment, I can only accomodate 1 wedding per weekend, so if they want to reserve that date, they HAVE to put down a deposit. They won't go anywhere when they've paid a non-refundable deposit!

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mmstormont Posted 8 Feb 2007 , 5:29am
post #8 of 11

I do a limited amount of cakes per weekend as well. I always thought that would seem more appealing to the bride, knowing her cake will be getting all of my attention. Plus, it's just me, so I really don't have much of a choice! icon_smile.gif

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Crimsicle Posted 8 Feb 2007 , 3:20pm
post #9 of 11

Since your pricing seems to be on target, the one thing I might suggest is to take a hard look at your cakes compared to the other baker's. Be brutally honest with yourself. Is the workmanship comparable? Have a friend buy a small cake from her in a flavor you offer to brides. Do an objective taste test. How does the cake compare tastewise and texture wise? How is her icing compared to yours? How about little things like borders and edges? You may be beating her price, but losing out on other details.

On the other hand, it's a small town. Habit and tradition go a long, long way.

I lived in a smallish town where we had a long-standing bakery. Their work was sloppy, and their cakes so-so. But, everyone just RAVED about their cakes. I think it was because they'd grown up hearing other people rave about them, and they thought it was EXPECTED to have a cake from No-Name Bakery, even though it wasn't anything to write home about. There were many other bakeries in this town, too. But, this one got by on an undeserved reputation. It always amazed me.

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mmstormont Posted 9 Feb 2007 , 3:26am
post #10 of 11

I have seen and tasted this other lady's cakes. She over books herself and like you were saying about the No Name bakery, her work is sloppy. I guess I should say, what I have SEEN has been sloppy, but the flavor is good. I like her icing! icon_smile.gif I have had brides and customers come to me after having problems and issues with her. She was a home baker until about 8 months ago when she got a storefront, so, I don't know. Her storefront isn't well kept, her display cakes in the window are chipped and cracked with decorations falling off of them. I think it's just like you said, this is a small town and people just automatically associate "Jane Doe" with cake here. But it's ok, I'll hopefully get a reputation built up as well. A good one that is...! icon_smile.gif

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alicegop Posted 11 Feb 2007 , 5:39am
post #11 of 11

Most unusual....... your prices are very reasonable. If it has been a problem, maybe you could think of telling the brides before they leave that if they book within a week (and leave a non refundable deposit) then they will (a) get a x% discount or (b) maybe get a free extra layer (which is probably cheaper for you than the discount).

I'd be hesitant to do that though....... unless it is something you would want to do longterm.

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