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underpricing?? - Page 2

post #16 of 18
Just another point to bring up about wal-mart. They are everywhere and we can not compare to them no matter where we are. First off, they can buy in bulk (and I mean thousands at once) I use to work in a walmart bakery decorating and During graduation time in 2004-a 3 week period-3 day weekends. We went through a minimum of 20 boxes of 1/2 sheet cakes a day on average. Each box had 6 half sheets in them. So that adds up to 120 1/2 sheet cakes a day. And then you multiply this by the thousands of bakeries they have and the lower wages they pay. Also, they expect 1/4 sheet done every 15 minutes. So one full sheet an hour then. We can't compete with that at all.

Also, ALL wal-marts charge the same (or within a few dollars of each other, due to price matching in areas) across the country. The prices are set in their corporate offices and sent out to each store. So whether you live in a higher priced area or a lower priced living area you still pay pretty much the same. Just not feasible for the type of creativity and personal service we can offer.

Leily

Disclaimer: I do not mean this to sound like I am talking down about wal-mart. I worked with some very talented decorators that I learned more from in the time I worked with them, than I think I could learn in any classes (minus the gumpaste/fondant stuff) I am just trying to show the differences in what we do and what Wal-mart can do. We just can't compare ourselves or our work to theirs.
It's better to be Hated for who you Are,
Than Loved for who you're Not.
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It's better to be Hated for who you Are,
Than Loved for who you're Not.
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post #17 of 18
This is so great I have learned that I to am under pricing thanks for all the great advise everyone, this is why I so love this site and everyone here!!!! thumbs_up.gifthumbs_up.gificon_smile.gificon_smile.gificon_razz.gificon_razz.gif
post #18 of 18
I highly recommend the cake matrix for pricing and help in serving suggestions. The one I have has three different ways to figure the price. One by serving, one by time and now I don't remember what the third way is. I have only sold a couple of cakes but took the average of the three to get my price when I did. icon_smile.gif

I know I have seen the cake matrix mentioned here at CC. It's well worth downloading! : )
Amy in Alaska
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Amy in Alaska
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