Should I Change My Pricing

Business By cakesondemand Updated 23 Feb 2006 , 11:50pm by cakesondemand

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cakesondemand Posted 20 Feb 2006 , 11:03pm
post #1 of 12

I have been recieving lots of inquires from my site about cakes and also referals but when ever I quote a price I don't here from them again. I charge $2.50 per serving for buttercream and $3.00 per serving for Rolled fondant here in Canada. I just quoted $45. for a dinosaur transfer
or $65 for 3-D dinosaur haven't heard back. Should I lower my prices or just be patient. Thinking of $2.25 buttercream and $2.75 rolled fondant.
Any advice!!!!!!! HELP

11 replies
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chefdot Posted 20 Feb 2006 , 11:09pm
post #2 of 12

I don't think your prices are bad at all.... reasonable. I am in the same boat kind of... when someone asks how much one is I tell them and they think it's too cheap, but then again, they are only asking to know, not to order themselves. who knows.... i would maybe ask what they think is reasonable and see what they say and just explain that your cake is fresher than a store bought cake and it's custom made.

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sugartopped Posted 21 Feb 2006 , 12:08am
post #3 of 12

That's a tough one. How are your prices compared to others in you area?? Do you just say....$2.50 per serving w/buttercream?? Or do you go into detail about EVERYTHING included in your price!! When I tell people my prices I always tell them everything the base price includes: 3 layers of cake w/2 layers of filling (which makes the cake ~3.5" - 4" high), BC icing, type of decoration, matching cake board, etc. Sometimes they don't see past the price...so I say my price first...then say but that price includes ......!!! Kinda takes the shock away from the prices and actually gets them to think about what they are getting!!!

Maybe throw in a free batch of cake bites or a bag of matching chocolates. I did this a few times when people were kinda like...oh I don't know....but I told them to trust to me...and I'd throw in a free batch of cake bites or chocolates. Then they ordered...and now two of them are my best 'customers' and have brought in a lot of business for me!!!

Hope this helped a bit!! Good Luck!!
Christine

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izzybee Posted 21 Feb 2006 , 12:16am
post #4 of 12

Where I live in the states, that is pretty high. We generally charge $1.50 for buttercream, $2.50 for fondant without flowers. I guess it depends if you live in the city that would be considered reasonable, but if you live in a rural area, that is pretty high.

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cakesondemand Posted 21 Feb 2006 , 2:03am
post #5 of 12

I checked with the bakeries in town and they charge $2.75 for buttercream and $4.00 for rolled fondant. I also service the greater Vancouver area
and they start at $7.00 per. so I think I'M ok.

pinkbunny I hadn't thought about the other aspects and I do offer a 1st anniversary cake fresh as long as they still live in the area. I also bring a 4" round to the consulation for a taste test
if they are wanting one. I'v had 2 consultations and both ordered. There excited about the anniversary cake when I tell them.

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tastycakes Posted 21 Feb 2006 , 2:22am
post #6 of 12

Pinkbunny, I like to butter my customers up also! I like to include a few decorated cookies to match the cake or a few cupcakes from extra batter, so they don't have to wait for party time to eat them! People remember those extra touches...sometimes I'll include few chocolate covered strawberries (only in summer when they're super cheap though!)

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MommyEdzards Posted 21 Feb 2006 , 2:25am
post #7 of 12

I have had the same problem with giving them a quote and then never hearing from them again. i don't get it though because I am super cheap. I have been told several times I am undercharging.... that my cakes are worth more, and I KNOW they are not finding something cheaper.
It is so frusterating!!!

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tastycakes Posted 21 Feb 2006 , 2:28am
post #8 of 12

You know Mommy Edzards, sometimes it just takes time to build up a base and then you'll be able to up your prices as you get more and more customers!

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Sugarbean Posted 23 Feb 2006 , 8:49pm
post #9 of 12

I am hoping to start my business pretty soon. And I was thinking of charging $3.00 for BC/ $4.50 for Fondant. I'm in Edmonton. That is a reasonable rate here. (I hope).

Once you get a base of clients that price will be no problem. Some people just don't see past the "cheap" cake mentallity.

Good Luck

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tastycakes Posted 23 Feb 2006 , 9:03pm
post #10 of 12

OMgoodness! For me, and I am in a larger city in Connecticut, the buttercream price sounds ambitious but the fondant is way low! I charge 2.50 for FC and 4.40-5.00 for fondant (and others have told me the fondant price is too low!)

It really depends on your market.

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klg1152 Posted 23 Feb 2006 , 9:09pm
post #11 of 12

Bakeries here start at $2.50 a slice for plain jane BC, no frills and go up from there.

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cakesondemand Posted 23 Feb 2006 , 11:50pm
post #12 of 12

I have decided to keep my prices at $2.50 & $3.00
and up. I was just having a bad day and alittle down but thought about it and my prices are fare the way it is when business picks up than I'LL raise the prices since I'm just getting started. Thank you everyone for your help.

Love Ya Sharon

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