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Concerned about all these pricing threads....

post #1 of 200
Thread Starter 
Each time a new one pops up I wonder how someone can even think about being in this business when they have no idea what their costs are to make a cake.

Shouldn't pricing be the FIRST thing we figure out?

Isn't it wise to have a price per serving price?

I don't get it..... icon_confused.gif
post #2 of 200
I want to know where are these customers are who place orders without knowing the price......if they've got the money to burn, they can all come to my shop icon_lol.gif
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Don't put the key to your happiness in someone else's pocket.

www.IndyCakes.com
http://indycakes.blogspot.com/
www.FaceBook.com/IndyCakes
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post #3 of 200
Thread Starter 
I know huh? It's probably the first question out of their mouths when they call or come to a consult.

It just concerns me though, because if someone doesn't know how much it cost them to make a cake, then they're probably losing money on that sale.
post #4 of 200
It just totally amazes me that someone can think about doing it this way. One Q was how many servings, and how much should I charge?

Another was Everyone loved my cake How much would it sell for? I think I want to be in business.

This is why I put such riduculous #s when someone asks the How Much Q. They have no idea whether, or not it's true, or not.

The really good one is: All my friends say I should go into business. Then the friends say you're too expensive. LOLOLOL I laugh at this one every time.

Mike
post #5 of 200
I have asked the pricing question myself here on this site. I DO know what my supplies cost to make the cake. Most us who are starting out don't know how to include our time into the equation, considering we are slower at completing the cake than a bakery or other cake professional. Am I supposed to charge more for the cake because it took me longer to complete because I'm still learning as I go? This is what I want help with when I ask a pricing question.
post #6 of 200
The "How much should I charge for this cake" threads seem to be on here everytime I visit CC. I just don't even read them anymore.
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everyday is a good day, some are just better than others.
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post #7 of 200
Quote:
Originally Posted by cncgirl00

I have asked the pricing question myself here on this site. I DO know what my supplies cost to make the cake. Most us who are starting out don't know how to include our time into the equation, considering we are slower at completing the cake than a bakery or other cake professional. Am I supposed to charge more for the cake because it took me longer to complete because I'm still learning as I go? This is what I want help with when I ask a pricing question.



You need to know three things.
How much it cost
How much profit do I want
How much will the market bear.

Your time is worth nothing. I know I will get flack for this. YOU'RE THE OWNER. Until you make a profit you make nothing. Bill & Kimberly don't care if you .02 an hour, and frankly niether do you.

I'm going to use Debi as an example. She can bake 50 cakes in an hour, commercial oven. You can bake three, four tops in a home oven. Who do you think will get done quicker? Your sites are set on profit.

Mike
post #8 of 200
Pricing is an issue we all hate to deal with and all of us seem to happily help those with specific questions on a design or an issue that stumps them, price-wise.

But I am also concerned about those who try to convince us that they've NEVER spent ONE SECOND thinking about how much they'd charge for a cake. There's just too many threads on this site on this topic for someone to say "I've no idea".

I believe they DO have an idea. I can't believe they actually sat in their living room, dreaming about doing cakes as a business and the idea of how much money they could make was NOT part of the dreaming process. I just don't buy it.

Let's add to our list of concerns those who start a thread of "I'm doing my first weddign cake? How do you bake multiple cakes? ( icon_eek.gif ) How do you stack them? How do you transport them? HOw do you get the icing smooth? What sizes should I bake? HOw much should I charge?"

Geesh, if you've never done a cake before, you really shouldn't be contracting to make a wedding cake! icon_eek.gif

I'm sure we don't want to scare off questions ... it's what makes this site successful as we all share our experiences. If someone can't find the serving chart, I'm happy to share the link. If someone has tried and tried to get smooth icing and they're stuck, We're happy to give ideas on what may be going wrong for them. If they are confused on when a center dowel may or may not be needed, We'll all jump in and share ideas. The example that cnc gives re: time to make a cake is a good discussion on how to bill for time.

I just worry about my CC friends who make it sound like they got up one day and decided to make a wedding cake "... so, um, how do I do that?" icon_confused.gif

Has Food Network and CC made it sound too easy? icon_rolleyes.gif
post #9 of 200
That's an interesting question, cncgirl. But that's never the way it's verbalized if that's what they're looking for. The usual question goes something like this:

"Okay...So, I made this cake yesterday for my SIL. How much should I charge her? Oh, it's three tiers...Mocha tropical swiss banana dream caramel filling (yummers!) with decorations and circles. Thanks!"

I'm always at a loss when I read these. I always have to hold myself back from answering, "Why don't YOU know what to charge for Your cake? Why are you asking US! How the heck are we supposed to know?"

It's a simple formula whether you're selling cakes or home made birdhouses...how much did it cost you to make it and how much, above that, makes it worth it for you to do it?
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Housework makes you ugly.

It's marshmallow, not marshmellow! Aaargh, I have the strangest pet peeves!
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post #10 of 200
Exactly Artscallion. I answer that question less and less. I'm sorry, but after awhile it just sounds dumb. To take an order and not know what to charge, dumb. Think about it, has anyone on here ordered anything on here without knowing what it was going to cost first?! Maybe I'm wrong, maybe their a lot of super rich people on this site that I don't know about.
post #11 of 200
I think it's fear. People have an idea what they want to charge for it, but fear that no one will want to pay that price, so they look to CC to find out if that price is reasonable.

Most of us really want the experience of making the cake, but we don't want to scare off our potential customer with an extreme price. Yes, we know our time and ingredients are worth the price....it's just a hard thing to explain. I think it will go away with time and experience and more confidence in our work.

The more i'm on CC the more confident i am getting, so i'm being more firm about my pricing. In the meantime, i've scared off a large birthday cake, a wedding cake and all of my friend's kids birthday cakes. They just don't think they can afford me, so they go to W-M or the local grocery store, without even trying to work out a deal with me.
post #12 of 200
So DeeDelightful my question to you would be, do you really want to work out a deal? I don't. I told you my price, period. The best I can do is give you a design that might fit a lower budget, but it would NEVER be a Wal-Mart budget. But I think the things we are also seeing more of is people doing consultations or actually agreeing to do cakes, and not having a price. icon_confused.gif
post #13 of 200
Quote:
Originally Posted by indydebi

Pricing is an issue we all hate to deal with and all of us seem to happily help those with specific questions on a design or an issue that stumps them, price-wise.



I agree with you indydebi. The only thing I will add is this...when someone asks about a specific price, please have some awareness of your area. I know that us CCers are from all over, but do realize that each area contracts different price points. For instance, a cake in my area may go for $2-3 per serving, whereas in New York the same cake could go for $8-10 per serving or even $5-6 per serving in Mississippi.

We all have to have some common knowledge in this "sweet" industry.
Whatever may be your task, work at it heartily from the soul, as something done for the Lord and not for men. -- Colossians 3:23
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Whatever may be your task, work at it heartily from the soul, as something done for the Lord and not for men. -- Colossians 3:23
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post #14 of 200
I have to admit, as well, that I have been guilty of asking this question. I guess there are times when I just need a vote of confidence. I do have to say that, in doing so, I have learned from many CCrs (mainly indydebi) that I really need to get some 'cake balls' and tell people that my time is money. If they want a cake for the grocery store price, then... GO TO THE GROCERY STORE! If people REALLY want a CUSTOM cake, they'll order from you.

Just yesterday I was telling my husband that I found out some girl down the street is selling 2 tiered cakes with fondant accents for... WAIT FOR IT... $30!!!! I won't even sell a sheet cake that cheaply!

Having said that, I would tell anyone, while you are in the process of figuring out what to charge, do your research and see what the local people are charging. I have called Walmart and found that their 2 tiered BC wedding cakes go for $89.

I do agree that before you take on an order such as a wedding cake, you should definitely know the in's and out's of cake decorating, especially how to stack and dowel!
Debbie
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My children go as far as the umbilical cord allows them!
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Debbie
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My children go as far as the umbilical cord allows them!
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post #15 of 200
Quote:
Originally Posted by morgnscakes


I agree with you indydebi. The only thing I will add is this...when someone asks about a specific price, please have some awareness of your area. I know that us CCers are from all over, but do realize that each area contracts different price points. For instance, a cake in my area may go for $2-3 per serving, whereas in New York the same cake could go for $8-10 per serving or even $5-6 per serving in Mississippi.

We all have to have some common knowledge in this "sweet" industry.



EXACTLY! thumbs_up.gif
Debbie
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My children go as far as the umbilical cord allows them!
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Debbie
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My children go as far as the umbilical cord allows them!
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