Originally Posted by LadyViola
You know, on my facebook business page, I take every opportunity I can to educate people on cake pricing. I think the average person really does believe "it's just cake". People HAVE NO earthly clue what it takes to create an edible piece of art. I hear it all the time: "Oh, that's just too much" or "That's way out of my budget". I had one lady call me up about a month ago and ASK ME straight out why I was charging $200 for a 3D cake. But I refuse to change my pricing simply because some people don't know the value of what I do. I figure eventually, people will catch on. It doesn't help when cake decorators charge ridiculously low prices because "That's all people are willing to pay in this area."
Agree - I did start on my webpage an FAQ which explained the fact that a decorated cake cost more than the average supermarket cake and why (materials, time, skills, freshness, taxes etc.). I do see a lot of traffic on that particular page, which is I think good, but still ... if I explain what my prices are and what they should be for me to actually make a living out of it, people are just stumped. I am on the middle/higher end with my prices, and the fact that we have a lot of hobby bakers who are able to sell a 10" for under $30 is not helping at all. Problem is that is that everybody can start a cake business, provided they include any proceeds in their annual taxreturn, and if they want to be truly official, register with the local Chamber of Commerce... which is free of charge by the way and does not require anything official in terms of forms, registrations etc..
I freely admit, that is way I started out as well, until I (very quickly) realized that this was just crazy .. and upped my prices.
perhaps I should expand that education to my facebook page as well