I really am amazed at how inexpensively customers want us to price our work. They see these really pristine creations in the Bridal Magazines, but don't bother to take the time to read the fine print where it gives the number of servings and the price. The first time I saw a cake that worked out to $20 a serving, I just about dropped my teeth! Not because they were getting $20 a serving, but because THERE WAS NOTHING TO THE CAKE!!!!!

I like to offer a lot of different flavors and a lot of different services with my pricing. This keeps me busy ... FOR INSTANCE, I don't know of too many bakers who will go back to the reception to cut their wedding cakes, but I do this and the cost is built right in to my prices. Why do I do it? Because:

a) I get to take my equipment home with me that night, so I know where it is and how it it taken care of;

b) this means I don't have to charge a high price for equipment deposit and then have to justify it when my equipment is returned late, broken, dirty, or not at all;

c) how many banquet managers really know how to cut a wedding cake? Not many from my experience ... I've seen them massacre a wedding cake for 450 and only half the guests got cake, AND I've seen a cake for 200 cut so thin you could read the newspaper through the chocolate slices! That wedding cake could have fed 600 the way they were going about it. And worst of all, they charged the Bride's family $260 to cut and serve the cake, and ALL the excess was taken into the kitchen for the staff to pig out on later (I had a friend who worked at the facility);

d) I know how many people my cake was baked for, so I can tailor my slices to match the guests at the wedding;

e) I know it's old-fashioned, but I also take an assistant with me to wrap any excess (i.e., not eaten) slices in napkins for guests to take home with them if they wish;

f) I wrap the top tier in freezer paper so the Bride & Groom can save it for their anniversary;

g) I also provide a small box labeled "Midnight Snack" for the Bride & Groom to take with them that night so they have some cake to devour when they realize at 3:00 a.m. they're starving!

SO DON'T EVER FEEL THAT YOU'RE "OVERPRICED" ... the market will bear what the market will bear. And if that means you get quality customers with a quality checkbook balance, then so be it! LOL

I did a cake for one of my employees back in the summer. She was having a small Wedding at her home and I did a 3-tier basket weave for $100. It was a very nice cake. I wanted to give it to her as her gift, but she wouldn't accept it. So, $100 was the amount we agreed on so that I felt I was giving her a deal and she felt she got a good price. Of course, if it were a stranger, I would have charged more.

The day of the Wedding, her friend put the cake together. It scared me to death. I thought for sure she would be calling to tell me that they didn't put it together right and it fell. It all turned out ok though!

Wonderful posts from everyone!!



I agree that nothing is better than someone who shops around. they see what is out there and usually will come running back.

I also agree that a repeat customer should get a bit of a break.

I've been wondering about offering my referrals an incentive. Maybe 10% off of their next order or a free 1lb. of my cookies. Something for sending a good referral my way.

Do you guys do anything like that?

I am a home baker, and to me, $100 for a cake that serves 400 is absolutely crazy. Sounds to me like someone was so determined to make a sale, that they ended up shortchanging themselves. For a cake that serves 400, $100 wouldn't even make a dent in the bakers' expenses. I did a small wedding cake for 35 people a couple of months ago for $110, and I live in the boondocks. I learned from CC that you weigh all of your factors into your prices. Don't just come up with something that you know will sound good. You're only hurting yourself in the long run. JMO...

Amy

I have had 2 brides go elsewhere for cost issues in the last month. I cheerfully wish them well and forget them...I'd LOVE to do their cakes, but I can't do it for nothing.

Every time I sit down at the pricing matrix I use and figure every last detail of cost, and then time, and what I'd *like* to make per hour, my pricing is right where it has to be. If they can't afford it; I'm sorry. But I doubt that any of them would, if asked, perform their chosen professional skill that has taken them years of crafting and studying and practice to perfect....for $2.00 an hour! Heck, if it gets under $12/hour, I start getting depressed.

On the flip side, if I were a customer, I'd have a hard time accepting a cost of $87.50 to feed 25 people a fondant cake, but like DH always says "you get what you pay for."

Here's how my mom summed it up, and I love her analogy:

She said "Tell them to try taking 400 people out for a piece of cake at a nice restaurant after the wedding and see if they can feed them for $100!"

You can't even buy someone an ice cream cone at McDonald's for less than about $2.00! A good piece of cake costs anywhere from $4.99 to $6.99, even a restaurant sheet cake!

Thanks Mom!

my brother got married last Saturday and the lady was a homebaker who made the cake for 200 people it was $150 with the fountain! It was 3 flavors and tasted as good as it looked. She did an excellent job on the cake. She did my wedding cake also 9 years ago that was all basketweave (2 flavors) for about 300 people and it cost I think $150-$175. She knows my family (use to live just 2 streets over from her) so I thought maybe she just gave us a killer deal, NOPE, she charges everyone the same! I wanted to call her to tell her to raise her prices and my mom said "Don't you dare" MY mom use to decorate cakes years ago and knows how much $ and work go in to them, but she still wants that killer deal.

Don't ever undercut , we work entirely to hard for pennies.

One thing nobody's thought of yet is this:

Maybe those girls at the party who were "discussing" how much wedding cakes cost were trying to get a great deal (screamin' steal) out of you for the cake they were trying to "hook up" with you on. I mean, you know--since they were all in a competitive type conversation about how "cheap" each one's wedding cake was and all, maybe they thought you'd hear those prices and automatically put your prices into their "range."

We all know about the theory of "likewise actions" in groups, too--right?

However, no matter what other people may be charging for their cakes, only you know what your cakes are truly worth to you, and your customers!

I know I've made plenty of cakes that I felt I charged too much for, and a few where I've said, "I should have charged $1000 for this cake!"

--Knox--

I love this topic because if there is one thing I've learned it's to not undercharge.

I just raised my prices to $2.30/slice for wedding cakes. Outgrageous, huh?? (The average in DFW is $3.50/slice.)

I did a tasting with a girl who e-mailed me back and informed me she was going with another baker whose cakes were "cheaper" and "tasted better."

I was not offended at all. I was thankful she went somewhere else. I DO NOT want to deal with someone who is looking for the cheapest wedding cake. Cheap people are the hardest people to please.

At any rate, I am very pleased to see that others out there feel the same way. I hope that we can encourage one another to not undercharge.

I recently complained to my Dad that a gal was telling me I was too expensive and she could get a cheaper cake at Costco. He gave me a great response... "if price is your only consideration, then I highly recommend Costco/Walmart/any grocery store cardboard cake. But if you want a quality cake, I'm your gal. I have plenty of references..."

I like to mention also that maintaining a web site is expensive (in addition to the ingredients, power, time costs and my expertise).

When I started doing this, another home baker in my area told me "don't charge too little, or all the other bakeries in town will start bad mouthing you". So I did a lot of research on cakes in my area, and I charge a little on the lower end because I didn't have much experience. My first wedding season I got a lot of budget brides, who were extremly happy with their cakes and the prices. As I am now starting to get contracts for NEXT year, I have raised my prices a little, as I now have a dozen weddings under my belt. Prices in my area aren't very high, 3-4 dollars a slice for a nice cake. But 100 dollars for 400 people? I don't know how anyone can make a cake that cheap, unless it just a sheet cake or kitchen cake or something! That won't even cover ingrediants..! Shoot, I don't think it will even cover the cost of electricity to bake a cake that big!

But I agree with what a lot of people are saying..stick to your guns and charge what you feel is right. If you find nobody will buy a cake from you because you cost to much, then lower your prices. But if you are selling cakes and people are happy, well, let the other cake decorators suffer!

I recently had the same revelation.

I was pondering the customer question of "why are you so expensive, when I can get my cake at Costco/Walmart etc for XX dollars?" (notice I didn't say "the same cake")

And the answer came to me:

"Costco and Walmart are not actually who I consider to be my PEERS in the custom cake industry. But you're right, you definitely could get A Cake for less at one of those places. It just won't be a custom-designed, one-of-a-kind original, specialty-flavored cake, baked fresh and decorated with you personally in mind."

......

Who of us really feels that we're on the same playing field as Costco or WM??! I strive to be on a completely different level than grocery store bakeries, and pricing follows.

Not to mention that the wedding clientele I'm looking for would probably never even consider going to Walmart for their cake. I know people do, and that's fine--they're no less married afterwards--but I don't consider myself to be a "comparison" option for them when they're bargain shopping. Lord knows I can't beat their prices, but conversely--they can't touch my level of service.

...that's all I have to say, about that.

You know I was just remembering something... so bear with me through the story.

I use to work in a walmart bakery (don't shoot me it was a great place to start and learn my speed and some basics!) We had a customer come in to price out our wedding cakes. They saw the cheap pricing and brought me a picture. (Very close this one by 4Dollars) http://www.cakecentral.com/modules.php?name=coppermine&file=displayimage&meta=allby&uname=4dollars&cat=0&pos=4

I had to price out pretty much each cake seperately with the way we had to price. So I priced out the 3 tiers, then the two 2 tiers, then a single tier. We didn't have a fountain so that was her responsibility but told her where she could buy one in town. Also told her she would be responsible for getting someone to pick up the cakes and assemble them at the reception site. She didn't have a problem with all of this until I told ehr the price. We were actually about 100 more than someplace else that quoted her a price (and they had the fountain, delivery, set-up and serving in their price) It was fine by me, but I couldn't believe that someone else was charging less than we would. And they wanted basketweave and of course we couldn't charge more for that the way the pricing was.

Sounds like maybe the lady I talked to must have been using the same decorator these women were.

I was thinking that too. I remember my grandma would knit and crochet blankets. She sold them for less than it cost her to make because she wasn't making them to make money, but making them because she enjoys making them.

It's possible someone just really likes making and experimenting with cake making and just charges to cover her materials. She may not need the $$$ and wants to give brides/grooms a nice wedding cake at a budget price. Maybe the baker was a friend of the family too and this was also their wedding gift.

That's what I did for my friend. I made her cakes for free and considered that my gift to them for the wedding. They REALLY appreciated that! LOL

Melissa

I don't see how all of that could be done with so little money. I'd like to see one of those low cost cakes! Even after the cakes are baked, the flowers are made and the icing is made. It still takes time to put the cake together.

I have baked cakes for friends and family for free, or at a low cost. That is something I can't do for everyone. I truly enjoy baking and decorating also I enjoy seeing the person's face light up when they see my work. Then later when it's tasted and they enjoy the taste as well. Most people that have contacted me for a wedding cake feels my prices are reasonable, but I do have people that want something for nothing.

My first wedding cake was one of the most beautiful I'd seen-at that time. It was in 1991. It fed 350 people. It had a fountain, stairs on each side, pearls, stringwork, and ruffles. It included my colors very daintily with pretty little handmade buttercream and royal icing flowers to accent. The (home) decorator had told us that she once made a cake so beautiful that she signed her name in icing on the cake because it was a work of art. Mine was also signed. Maybe she did that to all of her clients so they would feel special. I'm just not sure. The cake cost $175. I can only HOPE that she's charging more now. I can't even imagine the work that went into it. My mom paid her $50 extra and that was STILL dirt cheap.

I wouldn't do it that cheap...even with my little experience! I wish I could find her now just to pay her again!! LOL Or at least to thank her for such a wonderful gift. I seriously had NO idea!!

I know I am underpriced, but really, $100 for 400 people!! Are they insane? How do they stay in business. And if they are making money, which I highly doubt, I want to know where they are buying their supplies so cheap!

Anyway, in my area, you can't charge a high price for a cake. People just won't pay it. There is a lady in town with an incredible reputation and I have people ask me for my prices because even though they know she will do an excellent job, they are not willing to pay for it. I don't have near the years of experience this lady has, and I don't have any experience at all with fondant or gumpaste, but it's the money that talks around here. I had a bride who was having 100 guests and the other lady quoted her $200 for a 3 tiered cake with 2 sheets, no delivery charge since the church was right in town. This bride thought that was outrageous and asked if I could do the same design any cheaper. I said I could do the buttercream and silk flowers, but she wouldn't get the gum paste. She didn't care. She just wanted a cheaper cake. How do you begin to deal with people like this? And it's not just one--it's the entire community! But I still wouldn't be nuts enough to do 400 people for $100.