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Birthday Cake Pricing- "Cake Packages"

post #1 of 10
Thread Starter 
Hi, so I have been doing cakes for about 3 years now and things are going really good. I price per serving and this usually works out fine for weddings or other big events (like 50th anniversaries, ect) however for smaller birthdays it seems like pricing this way almost makes the ordering process more work for people. So I am trying to come up with different "packages" people can choose from ( I think this will make the whole process a little less painful for myself as well as the customer).

My question is would any of you mind sharing how you break down different "packages"...if you price this way? Im mostly curious to see how much work goes into each price point, if that makes sense!

Hopefully that makes some sort of sense!
Thanks so much
post #2 of 10
We use flat pricing for single tier cakes (i.e. most birthday cakes) and per-serving prices for multi-tier cakes, since as you've seen most people ordering smaller cakes are used to the flat price.

We don't really have "packages", we just have a starting price for a basic two layer BC cake with very simple decorations ($44 for 8" up to $119 for a half sheet), with custom decorations and premium flavors/fillings as upcharges.
post #3 of 10
Instead of doing the price per serving, just do the math for them.

You can say it is $3 per serving or you can say a 8in round cake (that serves 24) is $72.

I wouldn't try to make packages, just have a list of the cake sizes, how many servings they would get (or a range) and then the price of the cake as a whole.
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post #4 of 10
It would be difficult to do a "package" price unless you're offering a standard product. Say, basic buttercream with a border and roses would be one price, while fondant decorations would be another, and fondant covered would be still another. Unless you're a larger operation, I don't think it would be viable.
post #5 of 10
What about doing a level 1, level 2 & level 3 price? Saying that level 1 will be basic, level 2 more detail and level 3 highly detailed?
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post #6 of 10
I think it's a great idea! I get way more inquiries than orders. I've considered putting pricing on the website. But the problem is customers aren't able to judge what makes a cake expensive or less expensive.

I think to implement this, you have to have pics of the packages. I tried this with my cupcake tower line, and even with pictures, it seems hard for a certain percentage of customers to get it.

If you spend cumulatively an hour or two talking to the customer, that can really eat into your profits. There are tons of people who barely glance at my website and then call and want me to upload it all into their brain on the phone lol. When I can tell a customer has actually read the website, sometimes I tank them for it.

Anyway, I love the idea, but you have to make it very clear and easy to understand. Charm City has come out with a line of cakes for $250 cakes ( 2 person cakes or something like that). They are non custom and that way they don't have to spend much with the customer.
post #7 of 10
And don't get me wrong, I would love to chat with customers all day about their orders, but if I do that I won't have time to make any cakes! icon_biggrin.gif
post #8 of 10
Thread Starter 
thanks guys, yall have some good ideas/ advice! While I dont mind designing/ talking with customers about cakes it seems like I need a full time secretary! The wedding cakes are the easiest ones it seems people meet with me give me their ideas/ colors we come up with a design and done....but the birthday/ graduation cakes are about to make me nuts. Its to the point of Im thinking about making a fee if you have changed your design more then 2 times! They constantly want sketchs, to meet and talk, change theme/color then try and haggle delivery prices!! AHHH! lol And on top of that being a pain in the butt I have to try and send out 400 e-mail and iron out details while actully making the cakes/ doing homework/ building a new house/ calving and having a full time job lol...thats why I thouht that this might eliminate some of that back and forth situation!

Yall have been really helpful! Thanks so much!!!! icon_biggrin.gif
post #9 of 10
Quote:
Originally Posted by Tacy09

thanks guys, yall have some good ideas/ advice! While I dont mind designing/ talking with customers about cakes it seems like I need a full time secretary! The wedding cakes are the easiest ones it seems people meet with me give me their ideas/ colors we come up with a design and done....but the birthday/ graduation cakes are about to make me nuts. Its to the point of Im thinking about making a fee if you have changed your design more then 2 times! They constantly want sketchs, to meet and talk, change theme/color then try and haggle delivery prices!! AHHH! lol And on top of that being a pain in the butt I have to try and send out 400 e-mail and iron out details while actully making the cakes/ doing homework/ building a new house/ calving and having a full time job lol...thats why I thouht that this might eliminate some of that back and forth situation!



Sounds like you are offering wedding consultation level services to clients who only want inexpensive cakes. You are losing money with that approach and allowing the client to dictate how your business is being run. I'd suggest:
Setting a minimum charge.
Policy of no changes after the order has been placed.
All party cakes must be paid in full (including delivery) a minimum of one week before the cake is due.

As to the delivery charges, tell them they are not negotiable.
post #10 of 10
It's possible to be flexible with customers as long as you set expectations. The majority of our business is relatively simple party cakes, and when a customer fills out our feedback form they are prompted for all the information needed for the order (and if they call I would go through a script that collects all this info).

The customer is welcome to send a sketch of what they want, we will tell them if it's possible and how much extra it will cost. Most of the time they decide on the a basic decoration instead (borders, a short message, and balloons or flowers) since they tend to grossly underestimate the labor involved in creating their design.

If they want an in-person meeting they are out of luck. If they want to change their design that's fine as long as the cake hasn't been decorated yet, but if the cake has already been started or they have already changed their minds too many times they are out of luck. I would say that for about 90% of our orders there are only 4 customer touch points: the customer fills out the online order form, we send the invoice by email, the customer confirms, and the customer picks up the cake and pays for it.

For party cakes we do not require a deposit and accept cash or check upon pickup or delivery. After four years and several hundred orders we have only had one no-show, and we were able to repurpose that cake with minimal effort and sell it to someone else.
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