Do You Discount Large Orders?

Business By valerie01 Updated 2 Aug 2008 , 2:01am by snarkybaker

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valerie01 Posted 31 Jul 2008 , 9:57am
post #1 of 14

Two questions....

1. A potential customer wants 25 dozen cupcakes for her wedding and wants to know if I'll give her a volume discount. My instinct is to say "No" since I do not know her and cupcakes are a ton of work. Also, I don't know if she wants simple swirls or something more detailed. Do you discount larger orders?

2. She first contacted me 3 months ago about prices, and I quoted $18 per dozen. I have since raised my prices across the board and charge $24 per dozen base. I charge $2 per serving base for all other cakes. She never officially booked, and this is just her 2nd time emailing me. Should I honor the original quote?

I'm very new to this, so thanks in advance for any advice!

13 replies
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CakeRN Posted 31 Jul 2008 , 10:13am
post #2 of 14

Personally I would not give a discount. It is no different than ordering a cake for 300 people. Would you give a volume discount for a cake to feed 300? NO!. If she was just inquiring and it was 3 months ago you do not have to honor that quote. She did not book at that time AND all prices have gone up in the last 3 months. Suppose you called the gas station 3 months ago to inquire about what a gallon of gas cost. Then went there today to fill up. Would you expect them to give it to you for the price they gave you 3 months ago?

Just tell her your prices have been increased since she last emailed due to increased prices in the grocery store. Tell her that you do not give discounts on volume orders due to it being no different than ordering a wedding cake for that many people. Also it is more work to do cupcakes than to do the wedding cake since you have to do 300 individual "cakes" .

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marknelliesmum Posted 31 Jul 2008 , 10:28am
post #3 of 14

Hi
I don't sell, just do cakes for friends and family but if I did I wouldn't offer a discount - i'd probably charge more for the cupcakes due to the fiddly nature. She didn't book at the price quoted so the new price is what she pays if she orders.

Be bold and fearless...stick to your guns if you sell yourself short once you will continue to do it. I've seen people on here price a cake at $500 and others saying they wouldn't do the same cake for less than $2000. Everybody has different circumstances and overheads - charge what you think is a fair reflection of your expenses, time and talent, not just the cost of the ingredients.

Good luck

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isista Posted 31 Jul 2008 , 10:30am
post #4 of 14

I also agree. You can politely tell her that "we cannot give a discount on cupcakes on larger orders because the work time cannot be decreased "(it is not like just use a larger pan and get a bigger cake .. you have to deal with their decoration one by one..and that is time consuming) .
Also tell her about the grocery prices and give your actual price.

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Mike1394 Posted 31 Jul 2008 , 10:47am
post #5 of 14

I'm sorry we don't consider this a lg order. Our discount pricing starts at 1000. Then give her your pricing for the 300.

Mike

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JulieB Posted 31 Jul 2008 , 12:06pm
post #6 of 14

Right, I wouldn't discount either.

I'm with Mike. So many people think theirs is a "large order", and it's not. Wedding serve more than 300 people all the time, and we aim for cakes that big and bigger. More people is more work, not less

Also, you're not locked into a price until she signs, so if she just inquired, just inform her your prices have gone up.

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cupsncakes Posted 31 Jul 2008 , 12:33pm
post #7 of 14

I get this question all the time, the last time was from a caterer who I just new was going to charge the couple twice what I would. I agree with the others, does it take you less time or ingredients to make more?? Certainly not, stand your ground. And yep, everyones prices have gone up. That's why we take a deposit (or retainer) to secure the quoted price.

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HerBoudoir Posted 31 Jul 2008 , 1:10pm
post #8 of 14

I've been browsing around a couple "wedding on a budget" type websites lately, and they all suggest that you ask for discounts for a variety of reasons. I wouldn't read much into it other than she's just asking to see if it's possible.

You should do what you think is best for your business.

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Denise Posted 31 Jul 2008 , 3:48pm
post #9 of 14

I never offer discounts - the more they order the higher I would go. I helped a friend recently deliver 150 mini cakes. OMGosh what a PITA. We had to handle 150 cakes - the bride changed tableclothes after we started setting them out and we had to move cakes AGAIN. Then she decided she wanted them right at the edge of the table...moved them AGAIN. My friend didn't charge enough for them to begin with - decorating 150 mini cakes was a challenge to begin with - delivering and setting them up was another.

I know now that I would charge more for a larger volume of minicakes/cupcakes simply for delivery/setup is MORE!

If she did not book way back when I would not honor that price. Price is at market price the day you sign the contract!

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Jasmine33 Posted 31 Jul 2008 , 4:10pm
post #10 of 14

I like what Mike said. lol

Well I guess what it comes down to is how bad do you want the buisiness and will she pay the $2.00? And is it worth it to you to do it for $1.50. I think nothing less is acceptable.

You could tell her that your price has gone up to $2.00 but you can give her a 10% discount?

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jules1719 Posted 31 Jul 2008 , 5:34pm
post #11 of 14

I never discount large orders. in fact, I increase price. Why? Ingredient cost may not increase, but labor does. 300 cupcakes don't take twice as long as 150 cupcakes to make and decorate. They take longer.

24 dozen is not enough that you would see any savings when buying ingredients.

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indydebi Posted 31 Jul 2008 , 10:32pm
post #12 of 14

Agree with the "what's big to them isn't big to us" statement.

I luv messin' with the minds of those who ask about a discount for a "big" cookie order of 10 dozen a week. And it's usually just for one week. icon_confused.gif

I smile at them in a way that says, "Man, I'm going to LUV making you understand what a dumba$$ you are!", I tell them, "I have a client that orders 25 dozen a DAY ...... that's where my volume discount starts. now ... HOW many were you looking to order?" icon_rolleyes.gif

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marknelliesmum Posted 1 Aug 2008 , 8:30am
post #13 of 14

indydebi said:

Quote:
Quote:

I smile at them in a way that says, "Man, I'm going to LUV making you understand what a dumba$$ you are!"




I wonder if that's the same 'smile' I reserve for my DH when he attempts any DIY icon_lol.gificon_lol.gificon_lol.gificon_lol.gif Bless him!

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snarkybaker Posted 2 Aug 2008 , 2:01am
post #14 of 14

I do discount orders over 1 dozen, but my price per cupcake is $2.75, so my cupcakes are $30 a dozen, about an 8 percent discount.

I love cupcake weddings. For me, they are much cheaper than cake weddings. I can have my $8.50 an hour kitchen assistant make and frost cupcakes. Wedding cakes I have to do myself, or pay one of my $14-$16/hr pastry chefs.

If it weren't a busy weekend for me, I might very well discount it a bit.

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