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Am I overcharging??

post #1 of 38
Thread Starter 
Hi.........question for all of you experienced cake business people out there.

I had a phone call from a woman who owns a cafe who would like to subcontract me to do cakes for her shop. Because I work out of my home, I feel that my prices are really reasonable, and the lowest they could possibly be before losing money.

Anyway, the owner called me to do an anniversary cake. The request was for a chocolate with choc buttercream, 3 tiered, to serve between 60-70 people. The woman wants to spend 60.00 for the cake, which I think is unrealistic.

For a cake like this, I would charge 1.25/slice. I am one of the cheapest in my area.

They want me to deliver it, which is 1/2 hour away. I am charging 20.00 for delivery to cover gas, mileage, and time to set it up. They also want equipment, which is also a 20.00/charge for the cake plateau, and a 20.00 deposit so that I get it back. She also wants fresh fall flowers on it, which will probably cost 25.00 bucks. I probably could ease up on these extra charges, but I feel like I need to stick to my guns.

All together, for a 3-tiered cake feeding 70 people, it will cost about 140.00, after they get their deposit back. The cafe owner also wants to mark it up so she takes her cut, so she will mark it up however much.....Does this seem reasonable?

Feedback needed!!! Thanks!!! Ellen
I love my lil' munchkin
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I love my lil' munchkin
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post #2 of 38
Thread Starter 
Any feedback??? Pretty please with chocolate ganache on top???
I love my lil' munchkin
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I love my lil' munchkin
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post #3 of 38
Hi _ I dont htink you are overcharging at all - $60 is ridiculous for a 3 tier cake with all that she wants specially the fresh flowers etc. Maybe you can give her the option of getting the flowers herself and then arranging it for her. I think you should stick to your guns. However I dont have that much experience as I dont have that many orders or cafe orders, so I am not sure how that works. Even if you had to come down a bit so that she can figure in a margin, I dont think you should come down too much, maybe 25c/serving MAX. Just my opinion. Hope someone else replies.
post #4 of 38
I think that you do need to stick to your guns on this one. I think that $140.00 is completely fair and reasonable. If this lady doesn't want to spend that much then she will need to come down onher expectations for this cake.

As you know cake decorating is HARD work and is time consuming. Don't sell yourself too cheap or you run the risk of getting trapped by these lower prices.

Congratulations on the subcontracting offer. Even if this anniversary cake falls through, there will be more orders!

......just my opinion. Easier said than done though, I'm sure!
FAITH sees the invisible, believes the incredible, receives the impossible!
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FAITH sees the invisible, believes the incredible, receives the impossible!
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post #5 of 38
I AM WITH LUV2CAKE ON THIS ONE. STICK TO YOUR GUNS. IF YOU CAVE ON THIS ONE, IT WILL ONLY BE WORSE ON YOU IN THE END AND IT WON'T BE WORTH IT. SHE WILL BE WALKING ALL OVER YOU AND YOU DON'T WANT THAT. GOOD LUCK.
post #6 of 38
Ellen, I don't think there is anyway you could do a cake for less than 1.25/slice. I think that sounds more than reasonable. I charge 2.50 but I know just being in different parts of the country makes a big difference. I don't know where this woman could get such a cake for $60.00. Hope you can work something out with her but I think your price is right! Bonnie
post #7 of 38
I think an appropriate response to her, pehaps should be something along the lines of:
"Woman, have you lost your freaking mind!!??"
She has to feed a few guest, you have to feed your family. Stick to your prices. Oh..consider raising them also.
When the $ 60 price is mentioned once again laugh hysterically for about a minute, finally stopping, wiping your eyes and say "No, really, stop, your killing me, you funny lady you!"
post #8 of 38
Thread Starter 
Lol...thanks!! At least I know I'm not the one losing the freaking mind!! icon_biggrin.gif I do appreciate all of your advice. I think people go into sticker shock when they find out how much a real cake costs. They've been suckered by the Sam's club and Costco prices, and many people don't see the difference. I appreciate the feedback!!
I love my lil' munchkin
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I love my lil' munchkin
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post #9 of 38
Ellen I agree with everyone else!! You charge what is worth it to you!! I think that price might be a little low. Using your stuff, you getting flowers etc.. that person must thing you are a fool. Don't budge!! If she doesn't want to pay you tell her to find someone else. GOOD LUCK!!
"Learn from a turtle... it only makes progress when it sticks it's neck out"
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"Learn from a turtle... it only makes progress when it sticks it's neck out"
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post #10 of 38
i agree with everyone else! why doesnt she just charge you to make the cake? haha actually if you do it for that low you are paying her to make the cake, your losing money. if she wants to pay that price, she needs to pick a nice sheet cake, simple as that.
good luck, let us know what happens!
melody
post #11 of 38
Ellepal, don't do it!!! And DOWN WITH SAM'S CLUB BAKERY!!!! Let's see Sam's CLub do all of that for $60!!! I am still learning not to underprice myself, and I enjoy cake making so much I end up doing extra work on them that wasn't really included in my price (a fondant bow here and there, rice paper bitterflies....) I'm still learning too. Cake Central will set us straight!
post #12 of 38
Ok ......she seeing if she can play you ....if she can get you to come down on this shell want all the orders to go like that .....Dont htink taht when she marks it up shes not gonna do herself the favor of cutting her fee!!! no no no ......you set your price and then stick to it....you work is fabulous.... dont settle
I didn't choose cake decorating.......cake decorating chose me!
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I didn't choose cake decorating.......cake decorating chose me!
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post #13 of 38
Now Ellen don't think of coming down on your price. For the work you do I think you ought to charge a little more. If this woman gets one cake out of you cheap like she wants there's no way she won't expect it every time. I'd set my price and stick with it and if she can't pay that she can go with an inferior bakery cake. Let people hear about your work and come directly to you. Looks like you're doing quite a number of cakes and they all look great!
"Life's tough, pilgrim. It's even tougher if you're stupid!" John Wayne
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"Life's tough, pilgrim. It's even tougher if you're stupid!" John Wayne
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post #14 of 38
I just realized who you were Ellen. You're the one that just did some dummy cakes for a pastry shop! You need to set that lady straight. You are very talented & don't deserve to be taken advantage of. Is this lady the owner of the shop? Good luck~
"Learn from a turtle... it only makes progress when it sticks it's neck out"
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"Learn from a turtle... it only makes progress when it sticks it's neck out"
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post #15 of 38
Why not make her day and say that you will do it out of the kindness of your heart and charge her nothing for it . GIVE ME A BREAK!!!!!!! You, if anything under charging What really gets my goat is that I think we all put in a lot of hard work in our cakes and not to mention the STRESS FACTOR and then as if that isn't enough to deal with people think we should do it for nothing!!!!! After seeing some of the cakes in the gallary section I sometimes can't believe how wonderful everyones cakes are and most of us are not "PROFESSIONALS" I think are cakes are just as good, if not better than ones sold in cakes shops. We should all have a little more confidence and strength.

SORRY TO GO ON AND ON
Laugh and the world laughs with you, snore and you sleep alone
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Laugh and the world laughs with you, snore and you sleep alone
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