Loooooong - I Need Help

Business By sarahbisher Updated 18 Jul 2007 , 12:51am by leily

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sarahbisher Posted 17 Jul 2007 , 10:02pm
post #1 of 10

I have a few questions. I started doing this as a "business" about 5 months ago and need some good advice.

As of right now, my prices are $2.25/serving for bc only cakes, $2.50/serving for bc with fondant accents, and $3/serving for fondant covered cakes. My cupcakes are $12/dozen for basic bc and $1.75/cupcake for specialty cupcakes. My cookies and brownies are $12/dozen. My sheet cakes are $1.25/serving.

I have been getting SWAMPED with orders. I'm realizing that I will have no problem getting business and that I am running around like a chicken with my head cut off! I have a 4 month old and a 3 year old and I feel like if I had known how busy I was going to be, I would of never started this. I quit my part time job (I was a preschool teacher) and I'm making "ok" money but with the cost of supplies, taxes, etc, I'm finding that doing lots of small orders is just a waste of my time.

I had a lady today (after several days of emailing back in forth and coming up with ideas for her sons birthday party) finally deciding on a mini beach ball cake and a mini pail cake (4" round). That would serve 7. I had another order for today that was a 6" choc. cake and after working on it, I had the idea of coming up with a minimum serving size requirement. Does anyone have any advice on what to do? I'm also wondering if I should raise my prices?

I'd rather have 2 orders a week that are worth my time and money than 8 orders of small, cheap cakes.

Anyways, if you've read this far, thank you for listening and any advice is greatly appreciated!!!

Sarah

9 replies
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KoryAK Posted 17 Jul 2007 , 10:20pm
post #2 of 10

If you are swamped, raise your prices and set that minimum order. Not a serving amount, but a dollar amount. Less work for more money sounds good to me icon_smile.gif

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indydebi Posted 17 Jul 2007 , 10:23pm
post #3 of 10

1. Yes, raise prices. I looked at my pricing and bookings from last year to this year. WIth increased pricing, I've done 1/3 less work for the same money .... and the year isn't over.

2. Yes, minimum order. I dont' turn my oven on for less than 35 servings and that is a rare one. Unless you are a full time bakery with oven running constantly, churning out cakes by the hour, it is nuts to have to stop everything you're doing for a 6 inch cake, especially with 2 little ones you also have to care for.

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JoAnnB Posted 17 Jul 2007 , 10:25pm
post #4 of 10

Absolutely, set a minium price. You can still do that 6' pain in the neck, but for at least $35. Sometimes, they still want it at that price. It isn't worth getting the kitchen dirty for less.

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Momof4luvscakes Posted 17 Jul 2007 , 10:36pm
post #5 of 10

You can definately go up in price. My BC cakes start at $3.00 per serving, and go up from there. I stay busy with about 8-10 cakes a week. There is a market here. If you call Edible Art, a 10 inch present cake with fondant bow is $95.00. I am thinking of going up again. The deal is to work smarter not harder.

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kelleym Posted 17 Jul 2007 , 10:58pm
post #6 of 10

I just raised my minimum from $40 to $50. Your customer can have her 6" cake or whatever...just so she knows it will cost $50. That will stop people wasting your time.

And I agree with everyone else -- one of my Wilton instructors taught us, when you get too busy, raise your prices! It is wonderful that you are doing so well! icon_smile.gif

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FromScratch Posted 17 Jul 2007 , 11:12pm
post #7 of 10

I agree completely.. I will have a $35.00 minimum order.. It's not worth it for less than that.. not to mention that I can scale my recipes down, but for a 6" cake there will be waste.

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sarahbisher Posted 17 Jul 2007 , 11:13pm
post #8 of 10

Thank you! Thank you! Thank you!

This is exactly what I needed to here. Momof4luvscakes - Are you in Raleigh? I have heard awful things about Edible Art from many of my clients! I definitely am realizing that there is an incredible market here for specialty cakes.

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majormichel Posted 17 Jul 2007 , 11:25pm
post #9 of 10

Noted!

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leily Posted 18 Jul 2007 , 12:51am
post #10 of 10

I would definitely raise my prices if you are staying that busy.

I also highly suggest a minimum $ order. So they can order the 7 serving cake, BUT it is still going to cost them the same as if they were ordering a 35 serving cake. You still have the same amount of time in going to the store, washing dishes, mixing the batter, dealing with the customer in the 7 servings and the 35 servings.

I am working on figuring out what my minimum $ will be. I am going to figure it on what one cake mix and one batch of buttercream will make and figure out servings, then that is my minimum $ amount b/c no matter what I make, I will be making at least one cake mix and at least one batch of buttercream.

HTH

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