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The unrealistic client - Page 7

post #91 of 157

Also if we want to go deeper, how many people on here order from an online source other than their local supply store??? You are charging market value but  trying  to purchase your supplies as cheap as possible to make a profit. My point is its a messed up system and there are several ways to educate decorators and yesterday when I made the first comment, I was attacked for being an amateur and was told I am hurting professionals. I had no idea, never really thought about it. When I made the statement, do you really think I am hurting local bakeries? I had no ideas I really was, I never thought for a moment my 2 to 3 cakes a month was doing anything wrong.  I am a very honest person and have seriously reconsidered my hobby because of everyone's posts. I seriously truly had no idea that I was illegal, and hurting the cake decorating business as a whole. There is no other choice but to not do cakes anymore, I can't afford to give my cakes away of free. There are no other options!

post #92 of 157

I give away my cakes, I'm not allowed to accept payment in IL because I don't meet the home baker licensing requirements. Because I do eventually want to open a business, I can't take the risk of breaking any laws that might jeopardize that. No I can't really afford to do it often, and I could certainly do with the extra cash, but that's the way it goes. If it was as easy for me as it is in GA, I would have already got licensed. So what if I don't make Colette Peters level cakes, people still want to pay me for them! 

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post #93 of 157
Quote:
Originally Posted by DeliciousDesserts View Post

So, lets do it.

Later today, I'm going to go through my glory & add a price to my cakes.

Now, how do we start a cool section for this? Or do we just start a thread?

 

Back to the original topic....

 

Just finished editing my photos to include pricing.  I'll start a new thread for anyone interested in comparing pricing.

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
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www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
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post #94 of 157
Quote:
Originally Posted by klhoward42 View Post

Also if we want to go deeper, how many people on here order from an on line source other than their local supply store??? You are charging market value but  trying  to purchase your supplies as cheap as possible to make a profit. My point is its a messed up system

Labor and skills are different then materials. Your mis-understanding/twisting a previous example. Yes, buying from Wal-mart does hurt small retail business. The small business owner can't compete with the purchasing power of Wal-mart. That's why so many businesses have closed. But, the small retail store can offer services and attention a giant like Wal-Mart can't, that's the only ground left to compete on.

 

Decorators are those small retailers, we can't compete with the pricing of big stores because we can't buy or sell on the same scale. Instead, what we do is compete based on our skills, our services and attention to details (taste).

 

If people come along and don't charge for their skills, that takes away the only thing/product a small business has to offer to seperate themselves from the big box store. Now we have nothing left to compete for, we go out of business because we can't afford to work for free.

 

Quote:
Originally Posted by kikiandkyle View Post
So what if I don't make Colette Peters level cakes, people still want to pay me for them! 

Exactly. If they aren't good enough to sell, then don't. But if they are, then please charge a responsible amount!  

 

I would never want you to stop decorating cakes! I want you to act responsibly and think about how you either help or hurt the industry and the people you love. Do as you'd direct your children and see that you're making excuses. I can see how you'd never want to stop decorating, don't! Think about adapting, being all you can be and learning how you can support the thing you like so much.


Edited by Stitches - 2/4/13 at 9:40am
post #95 of 157
Nobody wants you to stop making cakes and enjoying decorating them! Its simply a matter of understanding the difference between a hobby that you do for fun and being in the business of selling cakes, whether to simply make a little cash or as a full scale operation.
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post #96 of 157
Quote:
Originally Posted by klhoward42 View Post

So what is a person,  who likes to bake, suppose to do to start out, give away free cakes and then one day start charging the going rate in the area, never sell them to anyone before they make it where they feel they can charge the full price. Not all of us are as confident!! So back to my question how many people started out exactly where I am?? Nobody wants to admit for one moment that the majority of people who make it started out exactly where I am , so what is someone suppose to do?? All of you professionals did you start out selling your cakes for free and then one day charge full local area pricing???

Yes, that's exactly what you're supposed to do.  Not everyone follows the laws in their areas and that does hurt those who do.  I am in a state that does not have a cottage law.  I cannot and will not sell my cakes.  I do them occasionally for family and friends.  We have 4 kids and another on the way so just birthdays keep me in practice ;)  I have done several big wedding cakes for friends and non-profit fundraisers.  It is an expensive hobby.  I would love to be able to charge for them.  But I will not break the law and have my kids see me thumbing my nose at laws even if I don't agree with them, (unless it's a matter of conscience, of course - which this is not).  BTW, I homeschool too!  It rocks!  Did I hear your state has a cottage law?  Check out the requirements, it may be fairly reasonable for you to get licensed. 

I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia2.blogspot.com/

 

 

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I homeschool because I've seen the village and I don't want it raising my children.

 

http://whynotethiopia2.blogspot.com/

 

 

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post #97 of 157
Sure would love an Angel Investor.

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
Reply

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
Reply
post #98 of 157
Ha ha ha that makes me the unrealistic baker!

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
Reply

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
Reply
post #99 of 157
Quote:
Originally Posted by DeliciousDesserts View Post

Sure would love an Angel Investor.

 

 

Or a lottery win!

deborahanne

http://grandmasugarskitchen.blogspot.com/
http://fromlinetocolor.blogspot.ca/

Life begins at 325° F, and, yes, that IS powdered sugar in my hair.

Baby Shower
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Birthday Cakes
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deborahanne

http://grandmasugarskitchen.blogspot.com/
http://fromlinetocolor.blogspot.ca/

Life begins at 325° F, and, yes, that IS powdered sugar in my hair.

Baby Shower
(6 photos)
Birthday Cakes
(6 photos)
Christmas
(6 photos)
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post #100 of 157

Yes my state has the Cottage food law, and it is very new. From the research I have done its hard to get approved, because most counties don't understand it and don't know about the new law. Most people I have heard from it takes up to $1000 to get all the ducks in a row! From surveys, to hearings and fees. Also, even if I were able to get those things in place. I know that there is not one customer that would pay $3 a serving for a cake, $85 for a 2 tiered cake, $50 for a simple round cake! So I basically have no customers if I do raise my  prices! It's not worth it, I am so sad because this isn't going to ever work out for me! The comparisons for cake are that to a Walmart cake so I priced myself above Walmart cakes without charging an arm and a leg for a cake!!! Do rural areas have a lower price standard than large cities??? Is it ever do able to compare to Walmart or Kroger?? 

post #101 of 157
Quote:
Originally Posted by klhoward42 View Post

Yes my state has the Cottage food law, and it is very new. From the research I have done its hard to get approved, because most counties don't understand it and don't know about the new law. Most people I have heard from it takes up to $1000 to get all the ducks in a row! From surveys, to hearings and fees. Also, even if I were able to get those things in place. I know that there is not one customer that would pay $3 a serving for a cake, $85 for a 2 tiered cake, $50 for a simple round cake! So I basically have no customers if I do raise my  prices! It's not worth it, I am so sad because this isn't going to ever work out for me! The comparisons for cake are that to a Walmart cake so I priced myself above Walmart cakes without charging an arm and a leg for a cake!!! Do rural areas have a lower price standard than large cities??? Is it ever do able to compare to Walmart or Kroger?? 

Oh my dear!!! do never compare yourself and your cakes to Walmart or any other supermarket, you offer a one of a kind creation, made to a clients specifications, from scratch, spend hours lovingly crafting decorations and without all of the nasty preservatives etc

There is just no comparison!!!

post #102 of 157
Quote:
Originally Posted by klhoward42 View Post

Also, even if I were able to get those things in place. I know that there is not one customer that would pay $3 a serving for a cake, $85 for a 2 tiered cake, $50 for a simple round cake!

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.
Quote:
Is it ever do able to compare to Walmart or Kroger?? 

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.
post #103 of 157

Hi, klhoward, I just wanted to say that you mentioned before that you didn't think your cakes looked very professional. I think they are really good! Especially the Mickey Mouse one! Here's a little quote for you "... All of us who do creative work, we get into it because we have good taste. But there is this gap. For the first couple years you make stuff, and it's just not that good. It's trying to be good, it has potential, but it's not. But your taste, the thing that got you into the game, is still killer. That is why your work dissapoints you. A lot of people never get past this phase; they quit..." - Ira Glass     There are a lot of sassy vibes in this thread lately, but I just wanted to say that maybe you should look at it from a bakery owners (who lives off of their work) view,  as well as your own. 

post #104 of 157

You're not making the same cakes as Walmart or Kroger, their cakes are mass made from junk in factories, and decorated in a very quick, unskilled way with junk ingredients. Yours are carefully made, with quality ingredients and recipes, and skillfully decorated with custom details. You have to stop comparing your cakes to theirs if you want people to stop comparing your prices to theirs! 

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post #105 of 157
Quote:
Originally Posted by klhoward42 View Post

Yes my state has the Cottage food law, and it is very new. From the research I have done its hard to get approved, because most counties don't understand it and don't know about the new law. Most people I have heard from it takes up to $1000 to get all the ducks in a row! From surveys, to hearings and fees. Also, even if I were able to get those things in place. I know that there is not one customer that would pay $3 a serving for a cake, $85 for a 2 tiered cake, $50 for a simple round cake! So I basically have no customers if I do raise my  prices! It's not worth it, I am so sad because this isn't going to ever work out for me! The comparisons for cake are that to a Walmart cake so I priced myself above Walmart cakes without charging an arm and a leg for a cake!!! Do rural areas have a lower price standard than large cities??? Is it ever do able to compare to Walmart or Kroger?? 

 



If your county is not aware of the new laws, then take the time to educate them.  Here are some good pdf links that you can print off:

 

http://agr.georgia.gov/Data/Sites/1/media/ag_consumerprotection/cottage_food/files/cottagefoodregulations.pdf

http://agr.georgia.gov/Data/Sites/1/media/ag_consumerprotection/cottage_food/files/cottagefoodsfaq.pdf

 

Trying to compare to Wal-Mart or Kroger hurts everyone in the cake business.  It cheapens what we do!  I, personally, cannot purchase ingredients for what Wal-Mart  and Kroger charge for a completed cake.  I am not worried about someone stealing business from me, I am worried about the value of my work being lessened. 

 

You are not Wal-Mart or Kroger, there is no comparison between the junk that supermarkets put out and a quality, homemade, custom product.  I, too, am a SAHM and a homeschooling mom of 5.  The time I take away from my kids to work on my cakes is extremely valuable.  If someone wants my time, they can pay for it.  And honestly my time is worth so much more to me BECAUSE I am a mom with kids at home.  If I didn't have my kids here, what else would I do with my time.  Not everyone can afford my cakes, I understand that.  I would not/could not afford my cakes.  That does not mean that they are not worth it!!

 

I want to drive a brand new Mercedes, I cannot expect Mercedes to lower their prices because I cannot afford them where they are.  Value yourself, value your time, value your product, and charge accordingly!!

 

THAT being said... I have given cakes away as gifts, I have charged significantly less than market value when learning a new technique.  I let the client (usually family or close friends) know that I am charging a reduced price because I cannot guarantee the product will turn out as expected. HOWEVER, I always inform them of what the price would be if I were to do that cake again.  That way they are aware of the value and know that they are getting a steep discount, THIS time.

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