The unrealistic client - Page 8

the thousand dollars sounds like possibly going for a zoning variance

local jurisdictions have a ton of regulations that the state does not supercede just 'cause they enact a cottage food or farmer's market law

both/all have to be obeyed/complied with

when someone says, "oh your state allows such and such so you'll be fine" i just cringe

yeah no there's many other hoops to jump through too, your hoa, your apt complex, the city and the county multiplied by several different agencies

it'a all according to your local regulations

it's not about not learning the new laws it's about satisfying the ones that are already there

Quote:

Originally Posted by jason_kraft 


If you've done market research to get this information then you should already have a good start on your business plan. You may need to dig a little deeper to find target markets that are willing to pay reasonable prices though. Unfortunately it may be the case that some of your local market is not viable because so many people have been undercutting prices for so long.
If you compare yourself to Walmart and local grocery stores you have already lost, since they compete primarily on price and small businesses can't match those economies of scale. Walmart customers are not your customers.

And that's another big problem with starting out pricing too low -- you will attract the wrong kind of customers, so when you increase your prices to realistic levels you essentially have to start from scratch and find customers who are looking for more than just a low price.

Your primary focus should be on your competitive advantages -- that is, what you can provide that other people can't. This can be a focus on superior flavors and taste, quality ingredients, presentation (decorating, sculpting, etc.), flexible delivery options, partnerships with venues, niche markets (like vegan or gluten-free customers), or some combination of these.

The way Jason used the term "market research" may sound like a huge endeavor, and while it can be, you're just selling a few cakes and it doesn't take all that much work to find out what cakes cost in your area. If grocery stores are literally all there is, then you may be pleasantly surprised to find a niche you didn't know existed.

We can agree to disagree, but this isn't grey area where both of us can be right. Your 2-3 cakes per month count. They are your "vote". If you are the only person in the whole world who undercharges, then maybe your "vote" doesn't matter.  But you're not the only person.  How about this -- think of your small contribution to market prices comparing it to littering.  Each person knows his one plastic cup isn't going to create a giant mess, but we use a trash can and handle our trash responsibly because we know what will happen if everyone litters.  And we know how we feel when people think that it doesn't apply to them and litter anyway. 

When I first started, to make a portfolio, I made some dummy cakes, nine very fancy birthday cakes for family members and sold three cakes for well under what they were worth. Being a naturally lazy person, I was like, "There's no way in hell I'm going to work that hard for nothing ever again!".  Picture Scarlet O'Hara with the radish in her hand screaming at the sky about never going hungry again. :)  So, I had eleven really nice cakes, that are still on page one of my gallery,  and that was enough to show most people what I could do.

Most of us have under priced our work accidentally, since the nature of this so often involves doing stuff you've never done before. And I can tell you from experience, Jason is exactly right, when these customers come back to you and find out they can't get cake as cheap as they thought, the vast majority (like 90%) drop off. You can't interest them in something lesser priced, because they want a grand cake for cheap, and this is important, THEY KNOW THEY CAN FIND SOMEONE TO DO IT. And that's a sad state of affairs and also a little annoying.

Quote:

Originally Posted by cakesdivine 

 So maybe we should allow in this new whatever it is platform, have each caker classified as either a beginner, intermediate, advanced, or master/expert ability. This would let the potential client know that if their budget is low then they can go with a less experienced cake artist and pay a price accordingly. But if a client wants perfection then they are going to have to pay for it. Make sense?

That makes so much sense!  I know it's not realistic for everyone to do this, but wouldn't it be nice??  My hair salon has like 3 different levels of mastery and I can choose if I want a newbie or a master.  I know going in that I'm going to get what I pay for - good or bad! 

Quote:

Originally Posted by Tresor 

For what it's worth...levels are ok in theory. But with art you can not judge overall who is "master" ...vs beginner quality. Bottom line is ...if you get PAID follow the LAW and be licensed and certified, insured and everything a bakery has to have. (Including your taxes, as a real bakery does.) if not ...GIVE them away! ...while at the same time have the client buy, pay for and deliver all the material. I'm sure if they only show up with eggs, flour and butter the cake would be much different! So many are barely charging to cover the cost to be able to play Betty Crocker. But in reality it is AGAINST THE LAW to do that in some professions..food..healthcare...lol how would you like a wanna be doctor undercutting.

Hey,you live down the street from me!

do you remember that story in the news last year about some guy who was arrested for doing dentistry out of his home without a license? That happens a lot around here for some reason. I think he was yanking people's teeth out, for cut rates. Then there was that lady who got the "plastic surgery" from some person who injected household caulk into her butt. Those were some seriously deformed hips she ended up with.

I had a bride wanting a replica of the Royal Wedding cake , only for 200 people, and with a $150.00 budget.   

Many of our customers really just don't understand what goes into cakes like this.  I blame the TV shows that make it all look so easy, and promoting these cakes without promoting how much they charge for them.

Also , to chime in with the somewhat off topic conversation here:

A huge source of my 'Unrealistic Clients " are due to the fact we have another decorator in my area operating illegally.

In my county, to operate legally, I have to pay rent for a space at our farm market. I pay for insurance to CMA. 

3 miles away from me there is a decorator, with little experience, operating illegally, advertising herself as a business through a facebook page that she actively promotes and charging somewhere around $1.00 - $1.50 per serving.

She is considered my ' competition' . Weekly I have someone request a quote from me who feels I am unreasonable seeing as she quotes out similar cakes on her facebook at 1/4 - 1/2 of the price. 

I have potential clients come to me with photos of 3 tiered cakes, but they only need 30 servings but want the EXACT cake, and if they have already priced my  ' competition ' they are expecting me to make the 3 tier cake and only charge for the 30 servings they need as she does. ( Who does that?!? ) 

Even though I do not 'cake' as my main source of income, I do have overhead expenses to legally pursue my hobby that need to be covered. It's not right , in my opinion, for another hobby baker to operate illegally. It would be an easier pill to swallow if she was marketing only to friends and family members. It wouldn't matter what she charged, or what her expertise is as they wouldn't have been my clients anyways.

Turn her in! You can do it anonymously. Take a screen dump of her FB page and send it to the HD.

Quote:

Originally Posted by Godot 

Turn her in! You can do it anonymously. Take a screen dump of her FB page and send it to the HD.

That's a great idea. 

I didn't know I could do that under the radar.