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Second guessing my quote :( - Page 2

post #16 of 29
Quote:
Originally Posted by jason_kraft View Post

There's nothing wrong with people accusing you of charging too much as long as you realize that they are not your target customers. Your marketing strategy should be centered on customers who shop primarily based on quality instead of price, and the kind of people you get inquiries from will be a good indicator of how well your strategy is working.
I was referring to other bakers accusing new/hobby bakers for charging too much due to lack of experience. I agree that 20+ years in the business one is quite skilled, but they, as everyone else, had to start somewhere. Am I making sense?
post #17 of 29

DO NOT UNDERESTIMATE THE VALUE OF YOUR WORK. This is a mistake that we make more often than not, specially when we are new to this market.

 

Lets break down your work based on time, not including labor. Just humor me on this one:

-sketching: 2 hrs

-procuring materials for:

  -baking: 1 hr

  -packaging: 1 hr

  -cake boards :1 hr

-baking cupcakes: from the time you break the first egg until the time the kitchen is cleaned: 2 hrs

-making figurines: 4-6 hrs

-decorating cake boards: 1 hr

-delivery:?

 

Added all up:14 + hours

 

What you are charging/hr:

Divided by the price you are charging: 120/14 = $8.86/ hour

 

What you are doing from free: From a business perspective this is totally unacceptable

-labor

-overhead expenses (electricity, location, etc.) you are still incurring in overhead expenses even if you are baking at home. You still need to pay the electrical bill....  You need to figure this out and substract that from price per hour above.

 

Now you tell me if what you are charging is too much.... 

 

Good luck! :)

Marizol
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post #18 of 29
Quote:
Originally Posted by newbe86 View Post


I was referring to other bakers accusing new/hobby bakers for charging too much due to lack of experience. I agree that 20+ years in the business one is quite skilled, but they, as everyone else, had to start somewhere. Am I making sense?


Where on this planet can you find a hobby baker who is overcharging?

post #19 of 29
Quote:
Originally Posted by howsweet View Post

Where on this planet can you find a hobby baker who is overcharging?

From the perspective of a baker who sets prices based on a profit margin of zero, no overhead allocation, and a wage of $1/hour, anyone who sets prices appropriately would be considered "overcharging".
post #20 of 29
Quote:
Originally Posted by newbe86 View Post

I was referring to other bakers accusing new/hobby bakers for charging too much due to lack of experience. I agree that 20+ years in the business one is quite skilled, but they, as everyone else, had to start somewhere. Am I making sense?

You are making sense, but a veteran baker complaining that newbies are overcharging makes no sense whatsoever.
post #21 of 29
I get that some people have more experience as in years. But that doesnt matter because some people have natural talent and better starting off points. I can tell this just by looking at the first cake last cake thread. Like my first cake for example is awful, when I looked at other people's first cakes I was very impressed. Clearly they can charge more than me with less experience.
Hey everybody! Check out google.com ! This is clearly an attempt to direct traffic onto that site and away from cake central. Because everyone knows you can only have one browser open!
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Hey everybody! Check out google.com ! This is clearly an attempt to direct traffic onto that site and away from cake central. Because everyone knows you can only have one browser open!
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post #22 of 29
Quote:
Originally Posted by BrandisBaked View Post

If you are new to decorating, I don't feel it's fair to charge as much as a seasoned decorator. I've been decorating for 22 years and that's probably close to what I would charge. So I guess I'm in the minority for thinking that price is too much.

Not having seen your work, I am only going by your post that you are fairly new to this. And when you're new, it takes more time, but I've never thought it fair to charge a customer more because it takes an inexperienced decorator longer to produce a cake.

This post says that it's not fair for someone who is "new to decorating" to charge what BrandisBaked would charge because of the difference in experience. So should a newer decorator charge less regardless of skill?
post #23 of 29
Quote:
Originally Posted by newbe86 View Post

This post says that it's not fair for someone who is "new to decorating" to charge what BrandisBaked would charge because of the difference in experience. So should a newer decorator charge less regardless of skill?

For the vast majority starting out, it takes years to perfect their skills and improve their speed. So yes, when the cake NewbieJane makes looks far less polished than mine, I believe she should be charging less. I charge as much as I do because I am experienced enough to make a cake at a certain level, whereas Jane's may look nice, but years of practice do make a decorator better. I used to BE NewbieJane, so I am in no way bashing anyone.

Heck, I would like to charge as much as Sylvia Weinstock or Ron ben Isreal, but I am not at that skill level.
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post #24 of 29
Quote:
Originally Posted by BrandisBaked View Post

For the vast majority starting out, it takes years to perfect their skills and improve their speed. So yes, when the cake NewbieJane makes looks far less polished than mine, I believe she should be charging less..

By the same token, if NewbieJane makes a product that is at a similar "polish" level as a veteran baker and is targeted at the same market, she should not be charging less. If you're talking about the mainstream market the appropriate quality level has a pretty wide range due to the subjective nature of customer perception and diminishing returns.

If someone is upset at an inferior baker for charging the same prices they charge, perhaps they have misjudged the market and should be charging more.
post #25 of 29
Uh, that's what I said - WHEN the cakes quality is less , they should charge less. So of course the opposite would be true.

Wasn't your first response that she undercharged? Period? Where was price for skill level anywhere in your answer?

I feel like someone is trying to ride piggyback on my wisdom. LOL!
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post #26 of 29
Quote:
Originally Posted by BrandisBaked View Post

Uh, that's what I said - WHEN the cakes quality is less , they should charge less. So of course the opposite would be true.

The question was if a newer decorator should charge less regardless of skill. Your original answer was "yes". The clarification in your most recent post makes more sense in that skill has more relevance than experience. My point was that skill has an impact but only up to a point, and a more skilled baker may not necessarily be able to command a higher price. Let me know if you need me to simplify this for you.
Quote:
Wasn't your first response that she undercharged? Period? Where was price for skill level anywhere in your answer?

Check out the Pricing Formula link in my signature below if you want to know why I said she undercharged, period.
post #27 of 29
Quote:
Originally Posted by jason_kraft View Post


From the perspective of a baker who sets prices based on a profit margin of zero, no overhead allocation, and a wage of $1/hour, anyone who sets prices appropriately would be considered "overcharging".


I have to admit I hadn't considered that :)

post #28 of 29
Thread Starter 
I'm so sorry that I did not post sooner to thank everyone for replying. I totally appreciate ALL of the feedback and I have taken notes and even secured another booking! I'm replying from my phone and will write a proper response when I'm on my laptop (not sure when that will be though, as the keys are all messed up) but just wanted to say a quick, late, thank you.

Sorry again for taking so long to do this.
post #29 of 29

Actually, because a person has been doing the same thing for 20 years doesn't make them "seasoned". Baking and cake decorating are different concepts. You can be the best at baking and not good at all decorating. Someone with less experience might have a wider range of skills and techniques (i.e. gumpaste/molded chocolate figure, blown sugar) that someone that has been decorating 8" round cakes with buttercream and buttercream roses for twice as many years. I don't think it so much the number of years but the combination of skills and experience.

Marizol
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