What If They Don't Ask How Much You Charge?
Business By makeminepink Updated 26 Dec 2009 , 12:05am by Mike1394
Totally off topic here but our town literally has 200 people in it and it's 25 miles from where the kids go to school....I'm not sure if that even qualifies as small, maybe more like microscopic
?!?!?!
Hey! I lived in that town! It's the one where the horse died! 
Didn't have a newspaper, but we DID have Cecil's Barbershop.
Live in a town of 217 people and not once has someone ordered a cake from me and NOT ask the price. BTW Indydebi I always love your post!
You had a barbershop?!?!? So Jealous...we just have to get out the calf clippers when it's that time of the year ! I grew up in a 500 person town (in another state) where my mom was my first grade teacher....just picture little Diane sitting at her little desk, raising her hand and asking Mrs. Mom (?) for help..........so confusing !
Sliding off topic a second, my 1st grade teacher was my DAD'S first grade teacher! 
As I mentioned, I am literally related to most of the county I live in. My maiden name is VERY well known. The sitting mayor today is my cousin. Streets and sub-divisions carry my family's name. My children are the 6th generation baptized in our Catholic Church. Hubby and I used to play a game of "let's see where we go and what's the record of seeing people we know?" The record is 10 people in Kmart within 30 minutes. Heck, we went to Gatlinburg, TN and saw 5 people we know from back home! 
I always describe my hometown of "big enough to have lots to do, but small enough that everyone knows you're doing it!"
Mike, just had to say that up until a couple of years ago I also lived where there were more people on my street than in the entire town in which I now live. Talk about culture shock!!
OK--just one more small town off-topic digression--I have dialed the wrong number and ended up talking to the person who answered for 15 minutes (knew them) and it has happened in reverse to me as well...a number of times ! OK, no more digressions, I promise!
There are alot of times I wish I lived where there was less traffic, and generally less people. Then I think about it, and sure am greatful that I can go out at three in the morning, and buy a bag of flour.
Mike
Exactly why I liked living in a bigger city! I moved from a place of population over a million to a population of 200,000 and the lack of 24 hour places (they have them now) when I first got here used to drive me crazy! That and them and calling this place a "City"!
The point is, no matter if you live in a city of 2 million or a town of 200, no matter if the order is 6 mos in advance or 2 days in advance..always give your price up front and at the very least get a deposit for the cake if not the full payment. You need to protect yourself and your business. I would never be able to rent a hall for a wedding without putting down the deposit and if it were last minute I'd have to pay in full. You need to make sure your clients know that this is the proceedure for getting cakes from you. I've never had a client complain about it, nor have I ever, as an event coordinator, ever complained about it. It's just the way it's done to protect the business from spending money up front for materials or labor before the item is delivered.
And, yes, I'm sick of the way the media portrays small town people like they are idiots...especially small town people who have an accent...like the accent brings down the IQ level or something. UGH!
I live in a pretty small community, and there are a lot of "seasoned citizens" who actually get downright ornery when you tell them the price. They don't like talking about the money, I think some of them were brought up to think its rude to speak about money.
There are a lot of us out here who, although we have legit. businesses, are in super small rural communities (population-wise), repeat customers who are well-known neighbors, deliveries miles and miles away.....
I'm not sure what any of the above has to do with telling them the cost of something.
My husband believes it's in bad taste to talk about money, but you can bet your a$$ he never buys something without knowing how much it costs!You mean these people never take their car in to get it worked on and find out how much it will cost UP FRONT? You mean they never buy a house and agree on a purchase price BEFORE the final closing? You mean they send their kids to college and have NO IDEA how much tuition is before they get the bill?
I am so tired of small town people being depicted as mindless hicks who have no access to those "talkin' pitcher boxes", who have no idea what's going on in the world, who are unable to know the value of what they're buying, who think they are living in the 1950's Mayberry mentality.
I grew up in small towns. Lived in a one-horse town, but we had to stop calling it that because the horse died. And many of the most influential, intelligent, worldly people I've ever met crossed my path in those little towns, and they helped mold me in the person I am. (some of you may think that's nto necessarily a good thing!
)In my hometown, not only do we all know everyone but I"m related to everyone (dated one guy and we had to go back 4 generations to find out it's ok to date. My current hubby and I share a relative ... his aunt is my cousin). And I"m here to tell you that not ONE PERSON ever contracted with me for cake/food without knowing a price. NOT ONE PERSON ever brought their car to my father in law's garage and didn't know how much it would cost up front. I never went to get my hair done without knowing how much money I'd need.
I find this answer to be a cop out. Not telling someone the price up front is irresponsible and I"m sorry but if the baker gets screwed because of his/her hesitation to "I don't want to talk about money", then they deserve it.
If you're going to pretend to be in business, then at least pretend to do it right.
Hey, I wasn't trying to "cop out" I was just trying to relate to the OP. Sheesh.
You're right, it isn't good business to not do a price quote up front, but sometimes it does happen. Never had a problem with a customer not paying though, I guess I'm lucky.
Wow! You guys (or should I say, "Y'all") had alot to say!! I will be contacting the customer-- who I personally know-- to say, "I forgot to ask you what your budget is." The cake is for Tuesday, so even if it isn't what I usually charge, I will do it anyway. Thanks for the advice. I've got to get over my insecurity about pricing and just state the facts and move on. I operate out of my daughter's coffee shop-- so I'm legit in case you're curious. Thanks again!
There are alot of times I wish I lived where there was less traffic, and generally less people. Then I think about it, and sure am greatful that I can go out at three in the morning, and buy a bag of flour.
Mike
omg ain't it great! I've got 2 Sam's clubs within 15 minutes of me; a GFS store 10 minutes away, plus a Syco and McFarling Foods in town so I can pick up stuff at their will-call, a walmart just over the fence from my house, plus 2 others 10 minutes to the south of me and 15 minutes to the north of me. I am SO spoiled!
I was in Nogales, AZ (one of my warehouses that I managed was there) and mentioned that I needed to get to walmart to buy a book for the night. My warehouse clerk said, "You better get going! They close in an hour!" I looked at her in surprise and said, "Your walmart closes???"
update............ I talked to the customer and for a cake to feed 50-- she thought $40- $45 Live and learn people..........Live and learn!! I am going to do the cake I had in mind, state the price on the receipt and charge her $45.
update............ I talked to the customer and for a cake to feed 50-- she thought $40- $45
Live and learn people..........Live and learn!! I am going to do the cake I had in mind, state the price on the receipt and charge her $45.
For me the cheapest for 50 is $150.
Just thought I'ld add a little to the lesson, but I'm so glad you've learnec it and learned it well! 
Hmmm... if it were me I would have told her the price you would normally charge and if she didn't want it anymore then so be it. Why on earth should you take that hit just because she was thinking something lower?
Mainly because I waited so late before letting her know how much it will be-- which, by the way, most who have commented thinks is asinine. I should have known that her group wouldn't have set much aside for a fellow co-worker and asked in the first place. At this late date she won't have many options, which of course, isn't my problem. This way though, many people will get to see what kind of cakes I do and maybe they'll understand why they're more.
Sure she will. She can go pick up a sheet cake. So, what are you gonna do when those same people that see your cake, order a cake, and then can't understand why you are charging them so much then the other lady? See thats the problem you run into with selling custom cakes cheap.
update............ I talked to the customer and for a cake to feed 50-- she thought $40- $45
Live and learn people..........Live and learn!! I am going to do the cake I had in mind, state the price on the receipt and charge her $45.
I think this is a good idea to help wiggle out of any future situations with her or those inquiring minds around her concerning costs.
update............ I talked to the customer and for a cake to feed 50-- she thought $40- $45
Live and learn people..........Live and learn!! I am going to do the cake I had in mind, state the price on the receipt and charge her $45.
It's too bad you're losing money on this cake, but I hope this will motivate you to set your price and state it up front from now on. You DO need to make sure she knows what she SHOULD be paying for this cake. If it were me, I'd TELL her that "it's my fault for not stating the price up front, and that THIS is the price I'll be charging from now on." That way if/when her friends want to order from you you can tell them you undercharged for her cake and this is your price. If they don't want to pay your price don't do their cakes. The customer NEVER sets your price, no matter WHO they are.
Happy baking!!
Now how is that going to pay for licensing, insurance and all that money spent on getting business, overhead etc?... Any person who went through all of that and has their business in mind wouldn't charge what the customer thought it would be and just lose profit.
Now how is that going to pay for licensing, insurance and all that money spent on getting business, overhead etc?... Any person who went through all of that and has their business in mind wouldn't charge what the customer thought it would be and just lose profit.
Wow, OP, I bet you're sorry you asked. I think it's a nice thing you're doing, given that it was your mistake for not raising the issue of money earlier. Lots of people here give refunds etc, when they make a mistake on the cake, and I don't see the difference between that, and a different kind of mistake.
I think giving a discount would generate a lot of customer goodwill, and if you said something like, "Normally, I'd charge much more, but I forgot to let you know the price, so I'm giving you a discount this time", you mightn't have the problem of others thinking that was your normal price.
You've handled all the criticism here very graciously.
Criticism?! Come on we're all adults and a lot of us actually do know a little something about running a successful business or two.
I'm so tired of having to worry about sugar coating every single answer or reply.
Business is tough especially in our US economy. If someone can't bring themselves to tell a potential client how much a cake costs, then maybe that person is not ready to own a business. Certainly it will fail and that's not being critical that's being truthful.
I think every business owner who answered this post did so truthfully and with years of experience to back up their replies. If I were the OP I'd take what we said very seriously.
I certainly would not have wanted everyone who I spoke to in the beginning of my business ventures to tell me only what I wanted to hear.
I've said it at least 100 times on this site....making and decorating cakes is a VERY small part of owning a SUCCESSFUL cake business/bakery.
If you don't have a business mind......it will fail and fast. I'd hate to see that happen to the OP or anyone else on here.
Wow, OP, I bet you're sorry you asked. I think it's a nice thing you're doing, given that it was your mistake for not raising the issue of money earlier. Lots of people here give refunds etc, when they make a mistake on the cake, and I don't see the difference between that, and a different kind of mistake.
I think giving a discount would generate a lot of customer goodwill, and if you said something like, "Normally, I'd charge much more, but I forgot to let you know the price, so I'm giving you a discount this time", you mightn't have the problem of others thinking that was your normal price.
You've handled all the criticism here very graciously.
See, what she did though absolutely boggles the mind of the real business owners in here. BOGGLES. And I say real emphatically. A real business owner would not do something like this.
And to maintain dignity and respect for myself, my product and yes, the customer, my response would have been:
"I apologize for not giving you a quote for this project. I cannot allow this cake to leave my studio for less than (insert dollar amount here--MORE than $1.25 or whatever it worked out to). I understand if you were not expecting to pay that much, so I am willing to cut $10 or $20 from the price. Thank you for understanding, and I appreciate your business!"
If you suck it up and say "oh well-I screwed up and I have to give it to her for $45"....then that is saying you are bendable, prone to doubting the value of your work, and will make you a target for cheapskates.
This is great info, because I think we all know of another decorator or two in our towns that are super cheap, put out cheap products, and practice bad business. I know I do....several. Wouldn't it be great if they all read this forum and got their heads out of their butts and worked in harmony with the serious biz owners and quit underpricing and giving us all a bad name? Yeah.....I wish.
Jamie, hunny.... you're my favorite.
Just to chime in to DKelly. I own a VERY successful bakery and have just opened a new store. I have the most expensive cakes in town. The actual DECORATING of the cakes is about 15% of my work week.
Hey, Congrats cakebuddy on your new place.....I wish you the best and hope that your make TONS of money!!
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