I was wondering if any one is having the same problem as I am? I have lost so many prospective clients because of pricing. These people want specialtly shaped cakes for the price of a costco cake, I just can't do that. I think the highest quote I've given for a cake is $150 for 75 people and they never called back and that is the case with so many people I get callls from. They think because I make them at home it's cheaper for them. I don't mean to sound snotty but I 'd rather not do the cake than get cheated for it. I just graduated from baking and pastry school and have way too many student loans to pay back to be giving cakes away but I also can't afford to keep turning them away. What do I do? I don't bother with extra charges for fondant, fillings, decorations, and things like that so they're getting a good deal ( I think). My DH gets mad when I try to give discounts but I am starting to feel like this is never going to work out.

Thanks for reading and sorry it's so long .

Jackie

I can't really help you, but to give you a bump. I don't know what the market is like where you are, but that may have something to do with it. Maybe check around with local bakeries & see if you are in line with them?

Looking at your photos, you do incredible work, so I'm sure that's not the issue. If you are in a rural or depressed area, it can be hard to convince people to spend much on cakes. I hope it gets better for you, soon.

Good luck & {{hugs}}!

If you are happy with your prices then don't budge. If they want the cake they will pay for it. You are offering something a grocery store bakery doesn't offer. Some people just look at the price, and some people realize you can't compare apples to oranges.

I have my prices and I have lost customers because of my prices. But I won't do a cake for less than them because I have to cover my supplies and I refuse to work for less than minimum wage! Which is what I would end up doing if I did the cake at their price they want.

There are a lot of people in my area that can't afford my cakes, but i'm not asking everyone to buy. I offer a specialty product that you can't find from a bakery around here. There is a market for it, it just takes time to get to the right people.

LOL. I just read your post. I graduated from the Orlando Culinary Academy and my student loans are due now too! I am trying to start a business and my husband so thinks I am giving my product away. He has been getting mad because "Honey you don't work for free!"
Oh I sooo know how you feel.
Sorry I don't have any answers.

all the time I just don't worry about it it's there loss. Someone else comes along.

Part of the problem is all the exposure cake decorating is getting right now. Thanks to the Food Network people are seeing all kinds of cakes that aren't just regular sheet cakes. Unfortunately, none of these shows talk about how much these cakes cost. People assume cake is cake, never thinking about the time and talent that it takes to make these cakes, so they assume the price for a really amazing sculpted or tiered cake will be the same as the grab-and-go sheet cake down at the local grocery store. They also get upset when the grocery store can't provide the unique cakes (as they are set up to produce volume and it takes far too long to do one of these cakes). When people are faced with how much these kind of cakes are actually worth, many of them are forced to rethink their plans as they don't have it in their budgets to pay for these cakes OR they are unable to get past the fact that it is cake and aren't willing to pay for our time and talent. Stick to your guns. When word gets around that your cakes are worth every penny, people will be glad to pay your prices for your creations!

I'll get off the soap-box now!

I dont' think you're looking at this right. I hear you saying you got an inquiry, you gave them a price, they never called back to order. To me, that is not the same as "losing" a customer who ordered a cake, then found one cheaper and canc'd on you. It's a fine line, I'll admit, but I think it's different.

For 2007, I've had over 200 inquiries (I keep a spreadsheet, so I can keep track). They emailed or called for info, I emailed it to them. I have booked 37 events so far in 2007. I don't consider that I "lost" 160 +/- customers. I consider them "window shoppers". I've sent them my info and my pricing. Evidently it didnt' fit in their budget, so they moved on. And if they can't afford me, then I dont' want to waste anymore time conversing with them. Next!

But no matter how you look at it, making a cake for ANY amount of money just to say you made the cake, without regard to if you're actually making moeny or not is just not good business. SOmetimes it's better to just walk away.

Prehaps when you give them the price, you should be sure to break it down for them. "For only $2 a person, I can provide blah blah blah. So to feed 75 people, that works out to $150.

It is tiring when people only hear the grand total and don't stop to remember they are trying to feed 75 PEOPLE! I've done the research of my local restaurants. A slice of cake at places such as O'Charley's, Bravo's and Olive Garden can run from $3.99 to $5.99 a slice. And then they balk at two bucks???

From my non-cake life of years in sales, I'm telling you ..... people who shop for price only are almost always a lost cause. Your cake could be the favorite of Queen Elizabeth herself, but there are people who would STILL look at the price only..... and then walk away if they think it's too high (based on THEIR limited viewpoint).

I say let 'em walk.

I agree with indy debby. We only do custom work for customers that want that type of cake, but we do offer a "cheaper" line.

Those are the "specialty" flavors that we do in rounds and sheets.

The most we ever add on to those are 10 dollars for an edible image if they so want one, that's about it.

our custom cakes would start at 100 dollars for simple shapes.

we would price the cowboy hat and a pair of boots for 1,000.00 and someone that wants that cake would pay it...

or..for about 50 bucks you can get a 1/2 sheet with some cowboy picture and some chocolate or fondant accents. People happily pay for that after they get over the sticker shock!

I use to worry about losing customers over prices...not anymore though! I realize we all want to make money, BUT not just a few $ here and there!! I have a shop so I am not working from home but people still want a cake that feeds 100 for $30! My response is "You know I can't do anything for that price but you can visit Sam's or Wal-Mart and they will take good care of you." They either change their tune or not call back...whatever. They know I am the only one in the area that offers different cakes they can't get anywhere else so if that's what they really want they pay for it and if not they don't. I refuse to waste my time and energy on a cake that I make $5 on.

I've also found that its not having a large quantity of customers but a good quality base of them. I have a nice base of people who order from me for every occassion and I treat them well. Until they reach that status they have to convince me to do the cake not vice versa.

Like indydebi said...most restaurants, for a single dessert are more expensive per serving than a slice of decorated cake is!

It makes you almost want to print up an excel spread sheet that says "my price per person" vs "average restaurant dessert price per person" and then in a third column, put the calculated savings

I think many customers fail to educate themselves in the realm of business and pricing. Most do not understand the concept that if you "cut out the middleman" and go directly to the source, you're going to get a better product...the price may be somewhat more...but they have a twisted concept that quantity is better than quality -if that's there opinion, let them go elsewhere.

Most restaurants give you a table to sit at and bring the food to you and do the dishes. Do you?

As for consumers not understanding that going to the source = costing more, that's because that's not how it usually works.

I haven't read all of the responses so I don't know if this was touched upon yet. I noticed you had a website but I didn't see a PRICES page. That will usually help people determine if they want to continue with a cake or not this way they don't waste your time or theirs by calling if you are out of their price range.

On my site I have a pricing page and I have a starting price per serving and for sculpted cakes I have a minimum(which I made high) I figure if they want it then they will call and order if not then no sweat off my back. I'm not going to kill myself and stay up all night trying to get something just right for someone that doesn't want to pay me for my time.....end of story. Don't sell yourself short and don't feel bad because someone didn't buy your cake.

Ex: I want a Mercedes but I can only afford a Honda I'm not going to waste my time going to the Mercedes dealership shopping for something not in my budget no matter how wonderful and luxurious they are.

Indydebi and Eggshells are right on. I try to only make wedding cakes, my passion. When they say, "do you only do wedding cakes?" I ask what they are looking for. If it is interesting to me, I ask them their budget. People have an idea if they want to spend $35 or $3,500. I can adjust the design to match the $ amount. Then I decide "if" I want to do it. I had a photographer want a sculpted camera, I told them it would be over $500, she went with a $380 2 tier square cake, plus $50 for edible sea shells, total $430.
You are not too expensive. They are not your customers.

Like some of the others here, I also give my clients different alternatives. I too, also lost prospective clients due to price. I then started giving them choices and I'm more likely to keep them. I give them a choice between the cheaper sheet cake (2" high , no filling) or the more expensive tiered cake ( 4" high with filling). I also give them a choice between cake sizes to make it more affordable.

This is not a critique of anyone or anyone's methods of doing business but just my thoughts on starting out.

As some of the previous posters have said there are going to be some enquirers who will never in month of Sundays become customers due to insufficient finances or just not the right mindset to buy one of your cakes.

On the other hand there will be customers dithering between buying or not buying and these are the best sort if you like a challenge. You won't win them all round but speaking for myself I used to the enjoy the challenge of presenting the item, discussing its value, its quality and its advantages over other lesser quality products to see if I could turn them around into a sale.

If you are not overflowing with work or other commitments I think sometimes you can do worse than hone your selling skills and your powers of persuasion. It is apparent that relatively few members of the public are au fait with custom cakes and the work involved in making them and so need enlightening - it can seem like an uphilll struggle but hopefully convert a few, serve them well, and they willl spread the word -most people like an opportunity to show off their good taste/good sense/eye for quality to others.

I used to dye and decorate bridal shoes and when I started out I had to be prepared to go all out for the business in quiet periods it was easier to do this as I was not making any money I had nothing to lose. For dyed or undecorated shoes I charged similar prices to that of my competitors (even though my overheads were lower) because I was damned if I was going to give the stuff away - but in order to do this I had to take charge and ensure that any enquirer understood exactly what they were getting that they wouldn't get down the road ie I used to dye and decorate the shoes myself on the premises, mix colours to create an exact match to swatches and was 100% committed to customer satisfaction.

If the customer wanted decorated shoes but not want to pay my prices then I would be thinking of a lower cost alternative for them. The one thing I would never do was apologise for the prices I was charging -if I didn't think they were worth the money then why should a customer be convinced they were.

I hope I don't sound pompous!

Thank you all for your responses.

It just makes me crazy when people want to make up there own prices

I just had a lady last night TELL me, not ask me, to charge her $50 for a cake for 40 people filled with fresh strawberries and bananas decoratated for a bridal shower. CRAZY???? She said "your making me want to call the bakery" I told her you can call the bakery then because I am not charging $50 for a cake like that, she was already getting a discount at $80.

I will stay strong and continue to do what I am doing. I will just be grateful for the customers I do have and not dwell on the on the people who don't order.



Thanks
Jackie

If I was a customer and you told me to compare it to a restaurant my reply would be yes but when I go to eat cake at a restaurant I'm only paying the $3.99 I'm not paying for 150 people. Because a lot of people think the more you order the cheaper it gets. You know like a whole cake comes out cheaper than a slice. But I also believe that if you are comfortable with your prices then stick to them and the right customers will come along.

darcat, I think you're right ... they think cake for 100 should be cheaper.

As a caterer, I can tell you they don't understand the logistics of catering for large crowds. In a restaurant, it's easy to cook up 3 chicken tenders with a dish of mustard sauce for an appetizer in just a few minutes..... from stove to plate to table.

But a caterer has to cook 300 chicken tenders, usually off-site, keep them warm and transport them in expensive equipment and have them all ready all at once for the 100 guests, in expensive serving equipment, designed to keep it at food safe temps. From stove to storing equipment to van to the freeway to the site to the kitchen to the warmers to the chafers to the plate. And there is a cost in that.

We just have to keep educating them!

I'm so glad I read this thread. I've read many on pricing before, but still find that I underprice myself ALOT! I've only been selling for about a year, though. I am pleased to say I am getting better--but out of necessity mostly. I am too old to be staying up all night! I have been so busy that I find myself turning away orders or charging more so that it really makes it worth my while to "dirty the kitchen".

It has been getting easier to feel comfortable charging what these might really be worth--especially now seeing the philosophy here about giving options based on budget. That makes so much sense. It used to be I'd give gourmet cakes for fast food prices mostly so I could gain the experience and get pictures for my portfolio. I figured they really weren't paying for gourmet or wanting it, but I was wanting to do it, so I justified charging them less. hope that makes sense.

First of all, stop apologizing for your prices. The more you become self-conscious about them the more orders are going to go elsewhere. If you're confident in your prices, the quality of your cakes, and the taste people tend to go with you better because you aren't questioning where your skills are. The idea is to grow some rhetorical "Cake Balls"

Second, there is an old saying in sales and negotiations. The first person to mention price is the one who will lose the negotiation. First, get their mouth salivating with the cake, then sell them on YOU. People don't care how much you know until they know how much you care. Make the conversation about them, and get them sold on you first. Then when it comes time for the "How much is the cake?" you'll be ready with the answer. You aren't selling a Wal-mart or Costco cake, stop using their marketing techniques.

Lol! Does that seem kinda sick?!
I am so trying to figure all this out and don't know how, is it more about being personal with the customer in a sense? (Of course you want to be friendly)

I have never understood that part of "selling yourself." I have heard that phrase when pertaining to resumes as well. I don't get it! How exactly do you "sell yourself"

Sellling yourself: I'm not just lady taking a food order. I "KNOW" weddings. I show that I am interested and concerned about HER wedding. I am confident in what I can do for HER and how I can contribute to make HER wedding a success. I am not just interested in making the sale, I am interested in making sure HER wedding is successful and runs smooth. I am not out to grab every penny I can from her, I am out to make sure SHE has a great reception that stays within HER budget.

I sell myself by showing her the "what's in it for HER" factor.

Feedback from my brides: They choose me because of the rapport I build with them; because I'm fun and flexible to work with; because I seem to know what I'm doing and what I'm talking about; because I can offer workable (and affordable) solutions; because I am polite and thank them for taking the time to visit with me; because I really care about making sure they have a great wedding. They've said "We can tell you really love doing this!"

They dont' tell their friends how easy it is to work with Cater It Simple .... they tell their friends how easy it is to work with DEBI!

Here are a couple of great books that I've been reading lately: http://www.thesalesboard.com/sales-books.asp They are not really expensive and they are not "Textbook" reading. (The first two) are Highly Recommended!

indy is right on the money!!!!

Look...do you buy every outfit you try on? Every pair of shoes you try on? Of course not. That is why they call it "shopping".

Same goes for cakes.

I ask a prospective client what their budget is and then tell them what I can provide for that budget. I then also show them what they can get for a bit more. Nine times out of ten they go for the little bit extra for that extra "bling".


I try to work within everyones budget but will not give my work away. Clients talk. If you give your services away to one then someone they referred to you will expect the same deal.

You are offering CUSTOM work. Therefore each contract and each cake will be different from another.

If you are in this business to make money then that is what you have to do. If this is just a hobby and you aren't concerned about income or profit then you can charge whatever you like and take the chance of losing money on the job.

I used to go to laot of Craft shows, and you KNOW how expensive some of that stuff can be..... one lady got tired of people complaining how much her craft was, and she posted a HUGE sign outside her booth..... it said..... " I COULD DO THAT MYSELF FOR ALOT CHEAPER......... BUT YOU WON'T "
People want everything for the cost of supplies, and think NOTHING of the time and talent involved in getting to the final product...... those people need to go to Walmart and pick up their Wedding sheetcake.......

Ok. I may be comparing apples to oranges, but here goes....I own a hair salon. (My passion and hobby is cakes) I used to have a stylist (we'll call him Chad) Now Chad was VERY busy ALL the time. He would work 6 days a week and VERY long days and I always thought....wow. Chad is making SO much money! What am I doing wrong? I only work 4 days a week, fairly short days. Well, at the end of the year, Chad and I were discussing taxes and our incomes for that year came up. Wouldn't you know, I made more money!!
Hmmmmmmmmmmmmm.......Who do you think gets the better deal? I charged more per service, but didn't work 1/2 as hard. I guess my advice to you then is, don't sell yourself short. You have just as much talent working out of your own kitchen as people that have to drive to theirs. Don't worry. If you make it....they will come!