AHi everyone! After reading these last few weeks different Q & A's i have finally come to the realization that i am way under pricing my cakes. Although i think i have questioned my price when i have spent many hours working on a cake into the wee hours of morning. So how do i go about letting future customers know my prices have increased? When i first started doing cakes it was for family and in my excitement and newness i didn't know what to charge and the base price kind of stuck to the size of cake for future orders. (example: 2 tiered 12" and 14" filled for $50) After reading the questions and looking at cakes with prices i realize i am giving then away. So how do i go about explaining my increase? Thanks so much for any ideas.

why do you need to explain it?

you quote the new price for the new order. 

offering an explanation casts doubt on your process IMO. 

the gas station doesn't let me know when the price of gas goes up. 

AJust update your web site with the new prices. If anyone asks about the price difference, be ready with a short answer about how your prices reflect your cost structure. Be prepared for a mass exodus of your former customers and put together a marketing strategy to target new customers who will pay for quality.

AIt might lessen the blow for your regular customers if the next time they order a cake you do it for the price they have become accustomed to but informing them that you are about to make some changes to your pricing. No need to give an explanation as to why, but if you feel the need to say something about it a few simple words should suffice. And it is a price adjustment, not an increase. ;)

AWow, how long have you been selling your cakes like this? I don't even know how you'd cover your cost with those prices. Like Ella said I'm not sure you really need to explain your pricing. How do you advertise, do you have a website? I'd just post your prices there, your base prices so people have an idea. You can post something like base price $4/slice or $40 for a 6", basic pricing includes buttercream with border, fondant or Gumpaste pieces are additional (I am just throwing numbers out there).

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Correcting low pricing is probably the biggest help CC has been for me!!  I just LOVE you guys for this!  I suppose I had a bit of a "cheap" client base, but a lot of my customers have stayed with me through the price jump.  Caking is also not my main source of income, so when I reached the point of burn-out (doing too many cakes for way too little) I just didn't care anymore if I lost orders to the "cheaper cake lady" down the road...

Now, either I make bank or I don't fire up the oven. 

YOU have to value what you do, otherwise no one else will.

Who has the tag that says something like... When you work cheap, you will always be busy...?  TRUTH.