So I emailed a quote and I get a reply saying they really want to use me but they have had a much cheaper quote from someone else who is much closer to them and can I do anything?

No I can't, go with the cheaper quote is what I said. (not quite as to the point as that of course, I did try to explain my pricing)

I'm pleased that I've stuck to my guns, in the past I've given in and have always undercharged. I hadn't over charged with my quote and if someone else wants to make a cake for no profit that's their lookout.

It is irritating when this happens though as there are so many variables with cake making and prices can vary hugely, no 2 cake makers are the same.

I totally agree and am tired of this as well. I had a similar experience a few days ago with a woman that called me about doing a cake in the shape of the #80. She started of the conversation saying that she just called another lady that said it would be $65 to feed 30 people and asking me if that was too much and if I would do it cheaper since she knows that most bakeries charge $1 per serving. I gave her my price which was more then this price and I told her my price per serving for 3-D cakes which is actually a lot lower then most but apparently more expensive then the other bakery. She actually said that this wasn't a 3-D cake which I told her that it was since I had to shape the cake into the numbers and not use a pan. Of course she went with the cheaper bakery which is about a hour away from her but oh well, I am tried of doing cakes and not getting any money for them.

Me too! I'm now at the point that I'd rather not do the work at all than not get paid for it. There are still people out there who understand and are willing to pay but with so many cake business popping up I think we'll all get under cut more and more often.

What can you do? Just believe in what you do and keep on doing it I guess, and feel bad for the people who are undercharging.

Your experience is the same as mine, this was a carved cake and I don't use shaped pans. She was really sweet about it so I'm not annoyed with her, but I can't explain why someone else is cheaper, I don't know how they work.

thats when you say to your self...
Next please...

I have a bride coming this wednesday evening and i have a feeling that the mother is going to be a tad hard work.
But as with all my consultations - i direct my questions to the Bride - and listen to what she wants.
If i am able to produce what she wants and MY price is suitable then fine.
If not - there is always another caker and another customer around the corner.

Like me - the Mothers of the Bride have had their wedding day and cake - sometimes they need to remember that and step aside for the daughters day.


Bluehue

When this happens I typically suggest a cake with a simpler design that would cost less to make. The customer can then agree to the simpler design for a lower price, go with their original design for the original price, or find another vendor.

I can totally relate!
Last month a friend of mine asked me to make a cake for her twin daughters for August 11. She asked me to make The Little Mermaid theme cake that serves 60 and had to be 2 tiers.
She said she didn't have any pics so I found her a few & she loved one from here (cc). I told her I was available for August 11th and I emailed her a quote. She emailed me back & said it was too much and asked how much for a small cake & cupcakes would cost instead ? I emailed her another quote & she said she had to discuss with her hubby.
I did ask what her budget was & that I was willing to work with her. She never addressed this with me.
5 days later she emails me back to tell me thank you very much however she found someone who will make cupcakes for her. I assume this person will charge her way less or do this for free.. she also told me she's never paid so much for "cake" before.
I can't afford to sell cakes & not break even anymore.
It really makes me mad that this person is quoting so little or offering to make these cupcakes for free!
Oh yes also my friend's sister is getting married this October & this person that is making my friend's cupcakes for the twin girls is also making a small square cake & cupcakes for her sister's wedding!
My husband said it didn't matter if I offered a discount because this person could be doing this for free.
I'm so mad because I'm missing out on 2 jobs.
Both my friends live about 40 miles away & yes I charged a delivery fee.
Ingredients, supplies & gas, labor are all factored in the quote. I just can't believe this person is not charging! If she is I'd love to know how much? Sigh!
So yes I can totally relate.

Well what do you know, she went with me anyway now I feel a bit guilty. Better make sure I do an amazing job

I had 2 ladies come to me this past week wanting "cheap" cakes. Both are for Quinceanera's. One wanted the exact cake she ordered from me in March. Exact down to the color. A simple 3 tierred cake, covered in fondant with fondant ribbon and bow as the boarder of each tier. To serve 125 ppl and get this... She did not want to spend $200.00 I charged her full price the 1st time, I don't understand why she thinks I would do it for less this time. I said NO! I don't work for free.


The 2nd lady is a neighbor, brings me a picture, and ask for a cake base I will have to rent. So when I quoted her she says... my budget is $300.00. To which I responded, let me show you want I can do for that budget. I showed her cakes to feed up to 75 ppl. She admitted she had shopped around and knew cakes were expensive but was hoping because I was a neighbor. Sheesh. I don't even know the guest of honor.. I don't feel compelled to give anyone a discount.

My grandmother and other family members who had businesses had this motto. "Discounts don't pay the rent, Cash pay the rent"

OP You called her bluff and now she is back!
Also I'd rather make a little less profit and get the business then not get anything at all! Word of mouth is the biggest advertising!
Don't get me wrong, I'm not saying work for free! Still make sure you get your money but knocking off a few bucks - sometimes only $10, definately makes them feel better! As long as it Is still justifiable to do the cake!
Remember everyone is entitled to their opinion!

I totally think that some of those are BLUFFS also.

I had someone tell me that they wanted a certain cake and that they had a much cheaper quote than what I was offering. I decided to match the quote since I was not booked for that date and boy were they quick to book with me and get me a cash deposit.

I thought afterwards I should have offered something in between. I get a lot of calls for last minute cakes and one can charge more for those and booking these cheapies doesn't allow me to remain open for that!


The other thing too regarding these cheaper quotes, who knows the quality of the design, the work, the ingredients or the baking. Now, I also try to explain to those people that a cheap price is not a better deal, show them lots of pictures of my work and try to share customer testimonials about the taste.

If you lower your price just to have something to do, the word of mouth will be, "they work cheap!" I want to work smart, pay my bills and have something to show for my effort. Anyone can claim that they have a cheaper price from someone else just to see if I will compete. Not me. Name your price and stand your ground.

I agree to not lowering too much but I'm talking about a few bucks that gives them that little bit of pleasure. Of course not allowing quality to diminish!

It's a personal choice. I am merely giving you another angle rather than gettIng all frustrated!

Hmm true what Jason said there. I did a "cheap" fondant cake for a lady and she took 5 of my cards and told everyone I was the best cake maker with cheap prices! Was most embarrassing. Learned a hard lesson there. Makes it really hard to charge good prices and pay my worker with that brand impression. Never again. If I were to knock off even $10 that would be $10 less to pay my kitchen worker. Where am I getting that now to pay her back? From my personal funds it would seem.

I am a bit jaded by all the "free wedding cakes" and "at break-even prices". Wish it weren't so but it forces a lot of us to look at our brand carefully and more focused advertising. But I do believe eventually those cheap prices catches up to them when they want to expand and replace major equipment and invest in more tools for their business or hobby. They will quickly realize they have no money in the business to support growth. Give them three years max especially if they don't use an accounting software or some excel sheet of all their revenue vs costs.

I have to agree with Jason Kraft. I would never drop even $5 or $10 just because someone asked. My prices are determined by calculating my costs and required profit, so if I say "Here, I'll give you $10 off", I am immediately painting myself as someone who pads her prices unnecessarily, someone who can blithely afford to take some off just like that.

In the words of the classics: Good cake ain't cheap, and cheap cake ain't good!

If someone is happy enough to talk about compromises in the design to work within their budget THEN I will calculate a cheaper price. It doesn't make sense to sully your reputation by appearing to be the caker with no idea of the value of her cakes!

Just my take on this.

Quite separate to this, but another aspect...seasoned cake makers have ALL had the experience when they have mistakenly quoted too low, or felt sorry for someone (usually a "friend", or family member), and has agreed to make a cheap cake. You will end up hating every. damned. second you spend making that cake!

Dunno about you, but resenting every moment of making a cake is NOT how I want to do business or spend my life at work!

Really great comments everyone, thanks! I 100% agree about offering money off ultimately being a mistake, I went down that route in the beginning and it's really hard to come back from if you are under charging. You don't want to be busy for being cheap, and all of those $10's off here and there really add up over the year.

I hear you all! I'm a hobbyist, and if I was making a business of it then I wouldnt be bargining my prices with people, but I wouldn't be complaining about those that do! I was giving an alternative to think about! But I like all your reasoning for not lowering prices. And like the OP, if you are good then the customers will come back!

To all of you who don't lower your prices, how do you handle people constantly undercutting you?

For example where I am from, we have people with little experience selling cakes happy to just to make a few meager bucks (e.g., stay at home moms etc.) In our area we all advertise in the same online location because that's the main place where all the people go looking for cakes. I get some refferred business but that costs me 15% and some word of mouth business but the main bulk is this online site.

I even saw an add a little while ago that said something like "I love making cakes. I just want you to pay for the supplies and I will just make your cake for you." Granted, that add was not up for long, but, it's the culture of the business in our area. And to SO many of the people logging on that kind of stuff seems like the best idea and the best deal especially since the commercial bakeries around here are either obscenely expensive or cheap but bake using mixes filled with chemicals and taste plain nasty!

Moreover, so many customers don't have an eye or taste for true quality. Advice anyone?

I agree with Jason's pionts. This model never works. If it did, it would be common practice.

I give discounts to higher volume and corporate accounts, but I built that into my price structure in my business plan.

Lowering your price makes you look unprofessional, a pushover, like not a knowledgeable business person, and not sure of the quality of your product. If you give in, the client is also less sure of your product.

Word-of-mouth does spread by clients passing on the little savings tidbit.

Edit: The wrong pricing structure, too high or too low, is also bad.