Hi everyone,

As some of you know, I mentioned in an earlier post that I have a 36, 6-inch cake order. Well after that post the customer called me back to tell me that there is a friend of a friend that works for Walmart and she can do the cakes for $3.00 per cake and wanted to know if I could beat that price. I was going to charge her $6.50 per cake. I know that I cannot beat the $3.00 per cake price. Should I just go ahead and agree to make the cakes for a lesser price? BTW she now wants the cakes torted and individually boxed. I would love the business but I don't want to lose money trying to fill this order. HELP!!!!!

Personally I would not do it. The other person is doing it for cost apparently (or is she telling you a tall tale to get you to lower your price?). Plus now she wants them torted and filled? No way is that worth $3 per cake, even to get the business (in my humble opinion anyway). Your talents would be better spent doing cakes for someone who will appreciate (and pay) for the work that goes into it. My thoughts would be hold your ground at $6.50!

deb

In my opinion I would tell her that you can't do it for less than that. Plus you wouldn't want to do it for less than that!! Heck, even at $6.50 each you are way underpricing yourself. You'll lose money and a lot of extremely hard work if you take it.

Lazy_Susan

Thanks MomLittr. I didn't think that the price that I was asking for them were too steep.

A 6 inch cake torted and boxed is a steal at $6.50! There is no way she is getting them for $3.00 from her "friend's ffiend" I think she just doesn't want to pay for them cuz why would this suppossed person who works all day long in a bakery making cakes all day for minimum wage want to go home and do them for less than she makes doing it at work? That's just my opinion! I think you should charge her more now she wants them torted!

I am fairly new to this. I don't even know what one 6-inch torted cake goes for at the store. Before she told me that she wanted them torted I just threw out a price. Now that we are on the subject, how should I price cakes? Do I account for everthing? Do I try to beat store prices? I am really lost

first off, the $3.00 cakes at wal-mart are only 3" double layer cakes, they come in frozen and prefrosted even with a top border. So if she wants to pay $3 then she will be getting her money's worth. Even their 7" single layer no filing is $4 last time I checked.

You do not want to try to compete with wal-mart, expecially if she is wanting them filled and boxed individually. At $6.50 that was a great price already and you would be giving her much better quality.

But, since it sounds like you will not be doing it for a lower price. Have you tried the pricing matrix? Someone spent a lot of time on this (it is a microsoft excel file) and has been very generous in passing it around. This is what I base my prices off of and then I add more depending on the detail. I beleive there is somewhere on CC that you can download it however i dont' know where that is off hand.

Leily

Stick to your price on this one!!! It always sucks to lose an order, but even at $6.50 per cake & w/each torted and indivdually boxed...you've given her a more than fair price!!!

I would charge her more than the original $6.50 you quoted since she now wants extras. She should be charged at least $8.00 each because of the torting and boxes. You're investing a lot more time on each cake plus buying & making up the boxes.
It's still a bargain and I'm sure she knows this but feels she can wheedle you down. Who needs a customer like that???

I agree, don't back down on your price. Christmas time I did (10) 5 inch christmas presents for a woman. Granted, I really decorated them (they are in my photos) and I gave her a good deal of $10 each. But what a LOT of work for me to do 10! I don't think I would every do that again. Sounds like this woman is trying to take advantage of you.

Wow, I wouldn't just say no, I'd say HELL NO.

I just can't believe people have the audacity to try to get cake artists to lower their prices to Wal-Mart and Costco and the like.

When I have "budget brides" try to get me to lower my prices, I tell them that they will get what they pay for. So far, none of my brides has opted for a Wal-Mart cake.

$6.50 was a really great price to begin with. Stick to your guns. No compromise on pricing!

I think I'd tell this lady something like,

"Oh, golly, I didn't know you wanted a Wal-Mart cake! Their cheap cakes make great smash cakes for little kids birthday parties since they get destroyed and not eaten! Actually, I don't even consider Wal-Mart my competition--it would be too unfair to Wal-Mart since my product would blow their's out of the water every time!"

Stick to your guns on the $6.50--it's more than fair and people who try to pull this "I can get it cheaper" &*%# are NEVER worth the trouble--they're users of the 1st degree

Rae

I think you should tell her to get the Walmart cakes!!! That is way too cheap!!!

Even at 6.50...that is too cheap!!! I would charge 10.00-12.00 per cake!!!

Wow--at $6.50 a cake, I would order 36 from you. I agree with BlakesCakes. This person is more than likely getting you to lower your price with an imaginary Wal-mart friend. People do not understand what goes into making a cake and the time to deocrate it.

Do not lower your price, you can't compete with Wal-mart (price-wise) but Wal-mart cannot compete with you (taste and quality-wise).

Thanks for all your support! I will stick to my price on this one. After she gets those cakes from walmart, a friend of a friend or whom ever, she will wish that she wouldn't have .

I hate to make you backtrack here but I missed your original post on this subject. What are these 30 little cakes for? I get the feeling she thinks she's doing you a favor bringing you all this work. So maybe she thinks you ought to bring your price down for the volume, since she is ordering so many they ought to get cheaper by the dozen? I can't think of any time I've gotten a small cake from a store bakery that was torted and filled! I would let the customer know that the price goes up with each new specification. She is trying to take advantage of you. Personally I'd rather lose the order than do it her way and have word get around that I work cheap and will do all kinds of extras for nothing.

I have a lady looking at my photo album now for a cake for her son's 1st b'day. When she approached me about it she said nothing fancy, just a simple sheet cake and a small cake for him to do with what he will. Now she is talking about how she likes the half sheet with the 3D bear (the front half) lying down and holding the ribbon to a balloon w message. That bear with fur takes a LONG time to do!! She's talking a lot more $ than she'll want to spend and more work than I will want/be able to do in June. I am having foot surgery around June. I'll have to talk to her first thing Monday so she can give it more thought.

You may want/need the business but I'd sure like to see you stick to your guns and not get taken. People don't realize, and some just don't care, what hours go into well decorated cakes. As someone said, it IS an art and we deserve to be paid what our work is worth. Otherwise they can go to Wal Mart or the like for a quickie cake which is all they are willing to pay for. Good luck!

I have let a few customers like that go and do you know what I have been glad I did as they were more hassle than they were worth even if you love making cakes.

I would be surprised if you could cover your cost for the $3... nevermind making money . if she wants a walmart cake let her have it and enjoy it NOT !

The other thing is if you go down to HER price she will tell everyone and everyone will be wanting a bargain basement cost cake... you will be forever haggling.

Wishing you well.

How much decoration is going to be put on these cakes? If you go by serving, a 6" cake serves what, 6 people or so? At a minimal $2/serving that is still $12! I would probably charge so you are really giving her a good deal. Don't let her guilt trip you into giving away your money, time, and hard work.

I agree with telling her she should just go with Walmart. I know many decorators that have been told "...well I can get it at _______ for ____" and they were told to "Go for it!!!" Don't lower your prices and don't regret losing her business. You can under-price yourself and it will hurt you in the end.

Stick to your guns - your price is WAY MORE than fair.

Definitely do NOT go down in price. Explain to her why your cakes are superior to Wal-marts cakes. They use unaltered box mix and frosting from a tub. You have a special recipe and use only the freshest ingredients (butter, milk, etc). A crafted cake has a superior look and taste to one that is mass produced by Walmart.

Why do you really want the business? If it's for exposure, then lowering your price is only going to bring you more customers who want the same "deal" you gave to the bride.

In the end, is the stress of completing 36 cakes all at the same time worth $108?

Good luck!

No way, Do not go down on your price, that is crazy to give you an order then to come back and add things and want it cheaper, does this customer think this is a yard sale.

Please keep us posted on what happens

A 6 inch serves 12. There is no way at 6.50 per cake you are making any money as it is. I do not charge less than $12 for a 6 inch plain. I would wish her good luck and tell her that you are not the person for her order.

oh my gosh... I honestly can't see you making ANY money selling them at $6.50... I can't imagine all of the work it would take to make that many cakes... and how frustrating would it be at the end of it to come out with so little profit... if any. I have to agree that I would "up" the price if she wants to add more to the cake and have it boxed..
good luck, and let us know what happens.

I have to agree with everyone else. Do NOT lower your price!! If anything, you need to increase it, especially now that she wants them torted and filled. As others have mentioned, if you reduce your price for the sake of getting the business, you're opening the door for future customers trying the same thing. My guess is that there is a good chance that this friend of a friend doesn't even exist. Just a tactic to try and get you to do the work at a lesser price. Good luck. Let us know how it turns out.

I wouldn't do it for 6.50 either..... After supplies you will make what $1 a cake ???? if even that

If you use a mix you will have enough batter for less than 3 pans so it will take 2 cake mixes to make 3 cakes and as far as your time it takes the same to do a 6" as an 8" infact they ae more awkward to frost.


So you will make possibly $36 for all those hours of work. less if you tort them and 36 cakes will take HOURS like all day.

Tell her you thought about it and to go with the 3 inch cakes from Wal Mart

Firstly what does torted mean and secondly tell her it is a bargain at walmarts if she likes the taste of mass produce stuff. Your price seems like nothing anyhow. Forget it in London I would charge £15

Walmart are massed produced cakes are they not. PS what does torted mean new in this line of business.

Yes, LeeAnn, Walmart cakes are mass produced.

Torting is when you split your cake into layers (2, 3 or however many) and fill between each one.

I think for 3.00/cake, you are losing money. How much did it cost you in gas to go to the store, in utilities to bake the cake, in ingredients to put it together, and don't forget the time involved for you.

I personally start at 15.00-25.00 for a cake, even a 6 inch double layer. It just isn't worth my time to do smaller cakes.

I think I would tell this lady that you unfortunately can't compete with a walmart price, and your price for a 6 inch is 6.50, and that is the lowest you can go in order to break even. Anything below 6.50 is going to put you out.

Tell her that your cakes are homemade and cared for, icings all from scratch with excellent ingredients, and for 6.50/cake, still a better deal than a frozen generic Walmart cake with canned icing.

I think you need to value yourself as a cake decorator, and if people can't pay your price, you can't accept the assignment.

If you are doing this because you are being a nice friend, how about going out with her, get the ingredients and have her pay for them. Then tell her how many hours you will be working on them and give her your usual per hour labor costs. Tell her that is what your time and effort is worth to her, and now it's up to her.
Let us know how it goes!!
Ellen