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HELP! I dont want to be known as the cheap cake lady!

post #1 of 66
8/13/12 at 9:48am
Thread Starter 
Ok here we go again, i've been trying to write this post on my nook and it keeps messing up and going clear when im just about done with the post Grr! anyways heres my problem i have another post on here from the other day if you read it you will see that i was having a problem getting the shape of a cake right, i ended up having to carve the cake anyways i have a order to make a 3 tier cake plus 30 cupcakes and delivery and i just found out that delivery is 30 miles away! and she had told me it wasn't that far away, well 30 miles one way for a delivery is far away for me i think. well the lady i'm making the cake for is a cousin of my neighbors, my neighbor told her that i have to die for cakes and frosting that melts wonderfully in your mouth. well this lady calls me begging for me to make a cake for her daughters 16th birthday, i went to her house and we agreed on a 3 tier cake and 30 cupcakes, ok great than she actually started crying saying that she had called around alot of stores trying to get the cake she wanted and she couldn't afford any of them not even walmarts prices. so i was at a loss and felt guilty for even charging her for the cake and cupcakes so i gave her a dirt cheap price just enough to maybe cover the cost of making the cake, so she was thrilled with that price and than said "oh i thought you would charge me at least double that price and i was ready to pay that" i was upset with that statement but didn't say anything .Shes been calling me making sure that i am getting the order done and the place and time of delivery and the such, she than told me she had a friend who wants a cake done and was thrilled at my low prices! yikes!!! my neighbor has also been telling people of my great cakes at low prices. my husband is way upset with me for quoteing such a low price . i added up all the cost of everything and im losing money on the deal, especially using high ratio shorting for the frosting, i cant afford to lose money on making cakes and cupcakes and delivery. what do i do when all these people that these woman say that they are gonna be telling that my wonderful cakes are great and that i have dirt cheap prices??? icon_surprised.gif
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post #2 of 66
8/13/12 at 10:13am
I'm sure you have kicked yourself enough for giving her such a low price. Okay - enough of that - stop kicking yourself.

Your motivation was clear. You said
Quote:
Quote:

this lady calls me begging for me to make a cake for her daughters 16th birthday,. . . . than she actually started crying saying that she had called around alot of stores trying to get the cake she wanted and she couldnt afford any of them not even walmarts prices.



You are permitted to open your heart and do charitable or lower cost work at your discretion. I think the lady sounds like a moocher, but you didn't know that at the time. Again - do not kick yourself. Next time you speak to her it's good to make the situation clear. If any of her friends call, its fine to be clear about your prices.

It takes time in business to get a "business heart". That's not being mean. It's just learning what you can and cannot afford as a business woman. It's also realizing that you are not a charitable institution. Take it from me - who has been in your shoes many times. It's a learning curve that somehow I think you have now mastered.
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post #3 of 66
8/13/12 at 10:14am
Just tell them that was a special price specifically meant for that original client. The price on that cake should have been....X dollars.

If you still want to appear competitive, double check others' prices. Once they rave about how delicious your cake is and how your real prices are super reasonable....you'll get the right kinds of clients.

Don't be afraid to stand up for yourself. Just learn the lesson and move on. If she was that broken hearted about how she couldn't afford anything...she could have learned to make the cake herself!

I once heard a lady on here say...work smart, not hard. To me, that means, charge the right price and you won't have to scramble making 18 little cakes for little dollars. Make one big fabulous cake for big fabulous dollars.

I would for sure set your neighbor and the "guilt trip" client lady straight about your prices. Perhaps have a little chat with the neighbor about it. And, maybe send a receipt to the guilt trip client lady with discount clearly marked.
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post #4 of 66
8/13/12 at 10:17am
Increase your prices according to your costs, labor, etc and stick to it! No matter what. If you feel like you have to explain, tell them you have reviewed your pricing versus cost and you were not making any money. There is good reason for the seemingly high expense of custom cakes. They are expensive to make, and take a lot of time and thought. Don't feel sorry for people who cry poverty over cake. If they are that hard up, they should make it themselves!
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post #5 of 66
8/13/12 at 10:20am
Quote:
Originally Posted by kazita

what do i do when all these people that these woman say that they are gonna be telling that my wonderful cakes are great and that i have dirt cheap prices??? icon_surprised.gif



Tell them you did it one time as a favor to a person who sounded desperate. If someone can't afford a Walmart cake they should just buy box mix and make it themselves. You will either be known as a really sweet lady or a sucker.

I would call her and tell her that you can't deliver for that price, or she can pay you the double amount that she was willing to pay you to have it delivered.

Or tell her you are having car problems (check engine light on or AC problems) and don't know if you will be able to deliver it that day and it's best she pick it up.

In the end sounds like you made a bad deal for yourself. As long as the ingredients are paid for you are just doing a favor for the rest of it.

You live and you learn.

You will only be known as cheap cake lady if another shyster takes you for a rube.

Basically you only have yourself to blame. Not that far is not an acceptable answer. You ask how many miles, or ask for the address and Google map it yourself.
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post #6 of 66
8/13/12 at 10:20am
I assume the original agreement with this person was for a cake delivered to their nearby home. Since the delivery address is actually much further away, tell her that you can honor the original price if you deliver to your house, or you can deliver to the new address with your standard delivery fee (we use $1/mile round trip).
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post #7 of 66
8/13/12 at 10:50am
You tell them, "You are mistaken, my prices start at $XXX."

Them: "But so-and-so said you are $XX"

You: "You are mistaken, my prices are clearly posted on _____________, stating they are $XXX."

Them: "But I can't afford that!"

You: "That's a shame, I'd love to be able to help you out so if your budget falls more in line with my pricing structure please let me know."

You also pulled a massive rookie move: NEVER discount your price as a starting point. NEVER. Always quote your full price then if you feel like discounting then go from there.

You also need to start valuing your work and time, otherwise you'd never be that quick to offer to make a 3 tiered cake for less then Wal Mart charges. That's complete insanity.

Learning lesson! Better luck next time!
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post #8 of 66
8/13/12 at 10:54am
Quote:
Originally Posted by FromScratchSF

You tell them, "You are mistaken, my prices start at $XXX."

Them: "But so-and-so said you are $XX"

You: "You are mistaken, my prices are clearly posted on _____________, stating they are $XXX."


It's still important to offer an explanation of why that particular order was priced so low, even just saying it was a one-time discount or limited promotion should be enough. If you don't give any explanation, when they go back to the original customer and see an invoice with the discounted price things could get awkward.
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post #9 of 66
8/13/12 at 10:58am
Also next time ask the person how much they can afford if you can afford to give your work away for basically free or have tome to do someone a huge favor. She was willing to pay twice what you quoted. If he comes back with a ridiculously low number you have an out for yourself. People will only take advantage of you if you let them.
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post #10 of 66
8/13/12 at 11:24am
Quote:
Originally Posted by jason_kraft

Quote:
Originally Posted by FromScratchSF

You tell them, "You are mistaken, my prices start at $XXX."

Them: "But so-and-so said you are $XX"

You: "You are mistaken, my prices are clearly posted on _____________, stating they are $XXX."


It's still important to offer an explanation of why that particular order was priced so low, even just saying it was a one-time discount or limited promotion should be enough. If you don't give any explanation, when they go back to the original customer and see an invoice with the discounted price things could get awkward.



Disagree - no salesmen manual or handboook would say to offer any reason why your business practices are your business practices. In fact, they all say to direct the conversation to your desired outcome giving as little info as possible to close the door to any questions from your potential customer. The goal is to say "no" without actually having said the word "no". "No" is a negative word and sets people off.

The more you try to justify why the person that got the special rate was "special", you make the new person wonder why they aren't special too. It allows the new person to put you on the spot asking if they can also be special -- because they *will* ask. Then the conversation gets even more uncomfortable because you are put on the spot and have to either tell someone a firm "NO" - or cave and give them the special price because you feel bad that the old customer felt special and want the new person to feel special too and you are uncomfortable and don't want to say "no".

In sales, NO is a bad word.
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post #11 of 66
8/13/12 at 11:29am
You tell them, "You are mistaken, my prices start at $XXX."

Them: "But so-and-so said you are $XX"

You: "So-and-so ordered during a sales promotion that is now expired. My current prices are clearly posted on _____________, stating they are $XXX."
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post #12 of 66
8/13/12 at 11:45am
Along the lines of what Jason said, anytime you give any sort of freebie or discount, make sure that person KNOWS they are getting it! "The regular price for the this cake is $$$, but because you _________, I will do it for you this one time for $$". This way the customer feels special for getting a discount (and not just lucky that she finally found the cheapest cake lady on the block) and hopefully when she passes your info on to her friends she will tell them the original price.
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post #13 of 66
8/13/12 at 12:23pm
Maybe on the receipt put the price of what the cake should have been (so she will know) and then subtract however much and mark it as "special promo". I agree, you need to let her see what it should have cost her. Also, I would try to get her to at least pick the cake up. Tell her that for that special pricing, she would need to pick it up. Good luck. You live and you learn.
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post #14 of 66
8/13/12 at 12:31pm
I think having someone repeat to me that 'I was mistaken' when I clearly knew what my friend paid would make me angry. I know the 'promo, one time, or discount' wording might be better .

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post #15 of 66
8/13/12 at 12:34pm
You live and you learn . I dont sell cakes .But one thing Ive learned from this form .First question should be What is your budget and second question how many servings do you need ? .
As far as explanation you could reply those prices are no .longer in effect . As far as the delivery to that customer . you tell them how much your delivery charges would be because you didnt realize you would be delivering out of town . Sorry but this woman is trying to.scam you IMO. Make sure you are paid upfront.I also wouldnt be surprised if this is one of those people who will find fault and want a refund .I know I could be wrong . Please let us know the outcome . Good luck and stand your ground .
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