Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Frustrated
New Posts  All Forums:Forum Nav:

Frustrated - Page 4

post #46 of 54
Quote:
Originally Posted by TheLoveOfSugar View Post

So what I'm hearing based on all the comments I've read is that I'm significantly underpricing myself! For a 4" and 8" covered in bc with fondant zebra stripes I charge $55 and for both tiers to be covered in fondant $70. I've got to get firmer with myself and not just give away the cake because I'm afraid they won't say yes.

A good way to tell if you are undercharging is to take your price, subtract ingredients/supplies and overhead, then divide the remaining amount by the number of hours it took you to complete the order to give you an effective hourly wage.

As an example: starting with $55, if ingredients and supplies are $15 and overhead per order is $10 (e.g. $500 in annual license fees and insurance / 50 orders per year), you have $30 left. So if the order took 2 hours to complete (including prep, baking, decorating, packaging, and cleanup) you are in good shape with a $15/hour wage. But if you spent 8 hours on the order, you are paying yourself $3.75/hour. Before taxes.

This is an oversimplification, in reality your wage would be lower since you would also have a markup in the 15-45% range for profit that is reinvested in the business.
post #47 of 54
Thread Starter 

All of you have been so very helpful. I love discussing this and it's giving me a little more confidence in my cake pricing. I've been underpricing myself horribly!! But part of that is due to being "self taught", not being a "professional", and working on the side from my home. And too, I'm wanting to make the cakes so badly that I end up under charging just so that I get the order.

I just spent a couple of days reorganizing my cake photos in a portfolio on my Facebook account and adding pricing in for potential customers to get an idea of what I charge for custom cakes. The photos are set for public viewing. Jason, I'm in Bakersfield, so not far from you, and I was wondering if you might take a look and slap my hand on a few of those cakes for me? On most of those cakes I put in what I would ask for today rather than what I asked for when I made them. And too, on some of them you can see how much I've grown and learned since I started making cakes. lol

 

The following link will take you directly to FB portfolio and Thank you for looking:

 

https://www.facebook.com/media/set/?set=a.4813630823034.1073741825.1364217028&type=3
 

EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
post #48 of 54
Thread Starter 

I will tell you that if you do look at my portfolio, the blinged out wedding cake entitled "Jennifer", I made for a friend and only charged her $200. Not counting the diamond accents and the diamond mesh, which she ordered for me. And not taking into consideration the fact that we delivered it to Shaver Lake from Bakersfield CA.

EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
post #49 of 54
The Central Valley is a very different market from the two I'm familiar with (San Jose and OC), but here are my first impressions on the products at the beginning of the gallery that IMO need to be priced higher:

King of the jungle = $200-300
Baby rattle cupcakes = ~$5
Graduation = $150-200
Guitar = ~$150
3D Fire Engine = ~$100
Fairy Tale Castle = $400-500
Drums = $150-200

FYI you may want to remove any cakes that feature copyrighted characters unless you have permission from the copyright owner.
post #50 of 54
Thread Starter 

Thanks for the feed back Jason!! I appreciate the input.
 

EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
post #51 of 54

I'm just going to get started selling cakes and yeah, you can get a cake from Walmart for $30.  But it looks like a $30 cake.  Nothing wrong with $30 cakes, however, people need to understand that the level of skill it takes to make a $30 cake is far less than the cakes you make.  There are people who value your skills and will spend the money.  Don't waste your time on someone who devalues what you love to do.  

Had my blog listed and then realized one day that all you could see was "misadventuresofanal..." Took that sucker right off.
Reply
Had my blog listed and then realized one day that all you could see was "misadventuresofanal..." Took that sucker right off.
Reply
post #52 of 54
Thread Starter 
Quote:
Originally Posted by kristiemarie View Post

I'm just going to get started selling cakes and yeah, you can get a cake from Walmart for $30.  But it looks like a $30 cake.  Nothing wrong with $30 cakes, however, people need to understand that the level of skill it takes to make a $30 cake is far less than the cakes you make.  There are people who value your skills and will spend the money.  Don't waste your time on someone who devalues what you love to do.  


You are absolutely right Kristie. I'm coming to the conclusion that I'd much rather have the fewer sales and have clients who "value" the edible art I create than to remain frustrated with those who are asking for that same edible art for free. I strive to make a cake that is as tastey as it is pretty to look at and in doing so I use quality ingredients. And I only want clients who understand that and want the same things I do in a cake.

EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
EvArt's Cake Adventures
Where every cake is an adventure!!
Reply
post #53 of 54

You have to look at your target market, remember that customers who want grocery store prices aren't going to be your customers. Don't get frustrated with people that aren't willing to pay what you charge. Those people will never be your customers. However you may be able to sway one or two people into paying what you charge by asking what they want.  Do they want a freshly made product(s) that's just the way they want it? Remember your customer is someone who likes choice, someone who wants a product the way the want it. In grocery stores there isnt a whole lot of choice and the quality is going to be different. You should also charge what you're worth. Don't undercut yourself.
 

post #54 of 54

A custom cake/cookie/cupcake maker and decorator will never be able to compete with a grocery store, and they shouldn't have to or want to.  Bakery items at a grocery store are a loss leader... they make no money on those cakes, etc., and they know this.  They get people in the door to pick up things they've ordered from the bakery (at a loss), and while they're there, they get other marked up items (ice cream, plates, party supplies, etc.).  It's kind of like "bait."  

I love my local custom cake bakery and always gladly pay more for the cakes I order.  They take my order personally and almost leave me speechless with every cake they do... they're so beautiful and tasty.  And the customer service is second to none... I really feel like my cake was the only one they did that day because they did such a great job!  I want to feel personally taken care of, and like my cake order matters to the cake shop's staff, and I always do.  No grocery store with their cookie cutter cakes will ever make me feel that way.  

Please have faith in your abilities.  The customers who want a custom cake and are willing to pay for the service you can give them (no grocery store can do this!) will come.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Frustrated