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Does this ever happen to you (pricing)? - Page 2

post #16 of 52
LOTS of people have no clue the time that goes into a well-decorated cookie! My MIL keeps saying how she'll put up the money for me to open my own shop....yet she wouldn't dream of spending over $1 for a cookie. She even asked me last week if I had any cookies "laying around" that I wanted to get rid of so she could take them to a luncheon. In other words, she wants to impress her friends with some unique cookies, but only if they're free! Sheesh.
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The pessimist complains about the wind;
the optimist expects it to change;
the realist adjusts the sails.
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post #17 of 52
Hi Chelsea,

i have been looking for a commercial kitchen as well. Seems like there aren't that many in the area. Have you had any luck?
post #18 of 52
People really don't get how much time goes into everything to deliver a finished product. to the OP, your cookies are beautiful...don't change your pricing.
post #19 of 52
As long as you are in line with your competition (and I don't mean Wal-Mart!), don't lower your price. If you're charging what you need to in order to make a profit, then you literally can't afford to lower your price. Stick to your guns and you will build a clientele that will pay your price....and one that will probably order frequently.

BUT...I do agree with the person who said to send a follow-up email. One thing I learned from years of sales...don't assume no response means no interest. Sometimes people DO forget, get side-tracked, etc, and they'll be calling you frantic the day before they need the cookies. So I'd send one reminder and then move on if they still don't respond.
post #20 of 52
I was guilty of lowering the price icon_sad.gif When I first start out, I wanted to practice so I said lower the price. That lady come back and bargain even more so I told her that I cant' do it. So lowering the price doesn't always get your customer back. But I understand. I still feel bad when the don't reply back. None of them ever reply back if they are not interested. So you need to ignore them. Good Luck!!
post #21 of 52
I had a bride recently balk at paying $1.00 each for 3" round and 3" square monogram cookies for a wedding favor and then I thought she'd die of shock when I told her it was an additional $.25/cookie for a bag and another $.25/cookie for a paper tag w/ message for a grand total of $1.50/cookie!!

I told her, that's my price and that's as LOW as I can go.

She called me back 2 months later and said "I'll take 200!" I'm sure she must have searched high and low online for cheaper cookies and came back telling me how "fair" my pricing was! lol
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post #22 of 52
Quote:
Originally Posted by KHalstead

it does happen (especially with my cookies.....and I have my prices posted!)......I think people figure they're small so they're cheap!


Anyhow, instead of re-emailing and offering a lower price..............re-email and something like " I'm following up on your inquiry as my calendar is filling quickly and given the time-consuming nature of cookies, I wanted to be sure I would be able to fill your order" This way they'll have to respond with a "never mind" or.........."hold the date for 100 cookies and I'll get back to you on decorations"

Sometimes people are so consumed with planning they forget things!



An excellent idea!

Unfortunately, this happens a lot in other business (freelance and otherwise) - even with prices posted on the websites! It's happened to me recently when I quoted my rate for grant proposal writing/consulting. Some of the people who don't respond may actually think, "If I don't respond to them, they'll come to me and offer what I want at a lower price because they're desperate for my business!"

When they get sticker shock, or see that cheap doesn't always equal GOOD, they may (hopefully) figure it out.
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post #23 of 52
Last night, someone emailed me about a cake. I quoted her a price. She emailed me back and said, "I am also getting a quote from a XXXXXX. She sent me a link to her website so I have an idea of what the cake will look like. Do you have pictures of your work? She is offering the same cake for $XXX (less) with free delivery, but I am wondering if your work is better. If so I do not mind coming to get it and paying the extra $$$$$. "

At first I kind of freaked out and thought I needed to match the other baker's price. But then I decided, No, I set my prices where they are for a reason, and if she can find it cheaper, then good for her. So, I just sent her a link to my website. I then searched on craigslist (because that's where she saw my ad) for the other baker and realized her work was not that great.

Sure enough, a half hour later she emailed back claiming that I did beautiful work and booked a cake. I was so proud of myself for sticking to my price, because otherwise, I just would have lost money.

I guess my point is that the good customers realize that your work is well worth it, and are willing to pay the higher price, and will come back, even if they do shop around a bit first
post #24 of 52
Thread Starter 
Quote:
Originally Posted by indydebi

I had a friend who ordered a cookie bouquet for a meeting that came in at over $100. her friends loved the cookies but said they'd never pay that much for cookies. I told her, "Then I hope they don't shop at C by D because my prices are about 25% cheaper than theirs." her mouth dropped open in shocked surprise!

It's a good idea to get (for example) C by D's pricing so you can even start out a conversation (and I've done this) with, "A 7 cookie bouquet from C by D is $xx.xx PLUS they charge $xx.xx delivery PLUS they charge $x.xx for the container. The good news for you is that that same bouquet from me is only $yy.yy!"

Know your competition! thumbs_up.gif



Thanks for the advice. I had a customer order a birthday bouquet and when she came to pick it up she had a Cookies by Design catalog with her that a co-worker gave her. She gave it to me for reference on pricing and design inspiration. She definitely knew I gave her a good price compared to them, but still fair to me.
post #25 of 52
I am guilty of lowering my prices in the past in order to get the customers; especially the ones who swore that i was going to get tons of orders through them. I can tell you that i've not gotten one repeat order or from these people, nor have i ever gotten a referrel from them. I've even done freebies for different venues and, again, never got orders through them.

I know that another cookie decorator in my area charges the same price as i do per cookie. BUT, her designs are very very simplistic, and she charges more to personalize and to bag individually. I include personalizations (name, logo, etc) in the price as well as bagging. So i am now more comfortable with my prices.
post #26 of 52
Thread Starter 
Thanks for all the supportive words. I know I shouldn't back down. It's almost as if I have to stop myself from saying, "What do you expect? 50c a cookie? Go ahead and try to go home and make a batch yourself. You don't have all the supplies, it took me months to get where I am with the decorating skills, you don't have my awesome cookie recipe and rolling out some recipes can be a PITA, so when it's all said and done, tell me if you attempt and outcome are better than paying me a fair price for 2 dozen decorated cookies." Not that I actually would say that, lol.

For those asking me about a commercial kitchen in Texas-
I contacted my local Farmer's Market to try to have a table and she told me about a couple of kitchens in my area who rent out time slots for you to bake, then I can sell them at the Farmer's market. I met someone who makes cakeballs who is doing really well and in the process of leasing a commercial kitchen space. She told me I could use the space for a really reasonable rate when she is not using it.

I just have to try to not feel rejected when this happens. I'm sticking to my prices, and that is that!
post #27 of 52
I just had a call tonight from someone asking about prices and i confidently told her mine. She immediately said she'll have to let me know because she's not sure what she's planning yet. I literally bit my tongue so as not to offer a lower price!!

Do you find it more convenient to put pricing into your advertising, or is it better for people to have to call? What are the pros and cons?
post #28 of 52
If you avoid printing the prices, it gives you an opportunity to "sell" why your prices are what they are. Quality of ingredients, quality of decorating, packging etc. If you do publish your prices you weed out all the "cheapies" from the get go. There......those are my pros and cons. I posted the following comment some time back on the cake side. I used to feel bad about my prices, when people swallowed. Until one day, I picked up my 5 year old from pre-k tutoring to work on her handwriting.....Paid $25 hour and the class was held at the teachers home. She was sent home with a $1.00 prize from the prize box that day.....What did she have invested but one hour. Then the same night I took my kids to get hair cuts. Two boys, one hour 15 minutes and it was $32.00. Yes the hair dresser had lights not much for utilities (didn't even wash their hair) and replace an occasional comb....but really, this is one person who did moan at the price of one of my cakes once. REALLY! Put this into perspective. We should be charging a lot more since we actually have INGREDIENTS involved, not to mention our time. Both of the above examples have training involved like us......points to ponder. Sorry long, hope this helps.
post #29 of 52
Thread Starter 
Quote:
Originally Posted by nesweetcake

I used to feel bad about my prices, when people swallowed. Until one day, I picked up my 5 year old from pre-k tutoring to work on her handwriting.....Paid $25 hour and the class was held at the teachers home. She was sent home with a $1.00 prize from the prize box that day.....What did she have invested but one hour.



See, I would like to be able to tutor, as I am a teacher as well. But I have three small children and scheduling tutoring sessions is just impossible right now. I think she still invested something, with her education and time researching methods, etc. but all that was invested on the front end and now she can earn some $$ more easily by during the 1 hour tutoring sessions.

Now, I know all of us here (most of yall way more than me too) have invested MANY hours learning the craft of sugar art. Plus, the time it takes to put them in action to create the cake/cookies, etc. So this was a great example of why I need to stick to my prices and so do others.

I'm putting my prices on my site for people who register with an email address to login to the site. When I email them my price sheet, I also include a small blurb about what an impact the cookies will have at their event . I also say that if they have a specific budget they need to stick to, to let me know and I can figure something out that works for them and is still fair for me. For example, if they wanted 24 fancy princess cookies, but are shocked at the price, if they let me know, I could suggest to them that we do maybe 5 fancy ones for the platter and the rest more simple (not flooded, just accent decorations, etc) and then I can get their price down and not have to work just as hard as I would doing them all fancy. Sometimes this works out.
post #30 of 52
I think i would like to advertise with the prices in order to weed out those who are looking for a bargain, and to catch the ones who don't bother calling because they assume it'll be expensive.

The only thing i'm concerned about is when i would need to veer off the general price and charge more. I don't want people saying "but you are advertising this price, why are you charging me more?" I guess things have to be layed out pretty clearly without it getting confusing or being too long.
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