Originally Posted by Bridgette1129
Originally Posted by cheatize
Still, my pricing was not finalized. I had to consider who were the most likely to buy my product. What is their income? What do they typically spend on custom items, on weddings, etc...? Is there a niche market I can fill? On and on and on, I considered and researched such things.
How do you find out what people spend on custom items and who to target? I understand how to look up their income, how much they spend on weddings and stuff but don't understand how to find out who to market except to look at their income.
Okay, this is gonna be long and rambling. I hope it helps someone and gives you some insight into how much work all of this is.
What do you do best? What do other people say is your best work? What do you want to do? What is your goal for your business? Do you want to do $1,000 cakes? Wedding cakes only? Birthday cakes? Sheet cakes? Cupcakes?
When people see something about your business, what do you want them to think? Upscale? Classy? Friendly? Like getting a cake grandma used to make? Custom? What words would be describe your business?
Lets say you want a wedding cake only business. You want it to be custom work only, no copying other cakes, and you want to do grand centerpiece cakes. All your recipes are scratch and people dont seek you out for vanilla or chocolate. You make chai, boysenberry, whatever specialty flavors with the finest ingredients and will buy local even if it costs more as long as it compares favorably to national brands. You dont do sheet cakes, kitchen cakes, cupcakes, or grooms cakes.
Thats an upscale market. Already you can rule out some income levels are these are not your main clients. Starbuck coffee instead of McDonalds drive thru. What are the most likely venues where your clients hold events? Go online, go in person, make a phone call, or whatever so you get a feel for those places. How much are they to rent? How much are chair, tables, and tablecloth rentals? Who is on their preferred vendor list? Check out those people and their prices. You already know these are not $300 wedding cake people. They expect to pay quite a bit more for the cake but how much more?
Where are the upscale areas near you? Where do they shop? How expensive are the places where they shop? How do they find people to hire? The local cake supply store? Peer recommendations? Whats the latest craze among this income level- can you check out those places to see if advertising there is appropriate? Do you need to advertise in certain publications?
Start checking out the competition for the area. Go online, ask people, ask venues. What names keep coming up over and over? What media coverage has there been for these cake artists and for those upscale weddings? Anywhere that you think will give you info/lead you somewhere, check it out. Check out industry reports and the census stats.
Hang out where they hang out. What do they expect of people? Are they looking for personal relationships where they feel you work exclusively for them? Do you need to provide services not normally provided like table design and set up? Do they need to feel you are helping them out and making them feel like you are making their hectic lives easier?
Perhaps these links will help, as I feel I am rambling.