Did I charge too much?
I had an order for cupcakes for a little boy's birthday this past weekend. The customer wanted 24 cupcakes (1 dozen yellow, 1 dozen chocolate). I charged her $1.25 each or $15 per dozen. I made all the batters from scratch as well as the buttercream icing (which is mostly butter). My husband said he thought I charged too much. She knew going in what the price would be.
Replies to This Discussion
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Permalink Reply by Eileen S on
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I do agree you are definitely worth what you charged, but I can see your husband's point of view as well. I struggle with price all the time. I KNOW I am seriously undercharging for my cakes, and if I was in a larger town I would charge more (I live in a small town in Northern Wisconsin), but where I live it is a sad fact of life that if your price point is too high you won't have any customers. So I have to ask myself if I want to be busy and continue to build a client base and continue to hone my skills? Or do I want to do just one cake every few months and charge more?
As an example, that ballet slippers cake I made? I charged her $35. I know, I know, that was at LEAST a $60 cake. The wedding cake I made I charged $250 - but it was my very first one and didn't know if it would even turn out o.k. If I tried to charge $30 for 2 dozen cupcakes I wouldn't get the order. So I'm just saying there may sometimes be an argument for lower pricing.
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Permalink Reply by Jennifer Carter on
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As I started thinking about actually making money for cakes, cupcakes, cookies, etc., I did A LOT of research online regarding pricing. I then based my price list off of what I found. I charge $15.00 for 12 cupcakes and $25.00 for 24. That seemed to be about average. If you would like to see my price list, email me and I will send it to you individually. :)
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Permalink Reply by Dena Bryngelson on
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If people know you as cheap they are only going to buy from you because you are cheap.
Some people will not even consider you because you are cheap...they will figure that you aren't any good. If you charge what you are worth and you really are worth that then they wont mind paying the premium for a premium product. Your reputation will build too.
Think of it like this:
Yugo vs. Mercedes
If person A. wants a Mercedes quality cake and you are charging Yugo quality prices then you are only ripping yourself off by giving them a mercedes and charging for a yugo. And that counts for wherever you live. Look at the market for your area....yeah I live in a small town and top price/serving wedding cake here is 4.50...If I were in Houston Texas I could charge 3-5 times that depending on what the cake is. But I don't live in Houston...but I'm not going to charge 1.50 here just because Wal-Mart does because I'm not using cheap ingredients. If I charged 5.00 and over the max here I might not have as many cake orders but I would still be making them...charge just under max and you will be working all the time and unable to get a breather. It's up to you what you think you are worth....Mercedes or Yugo...you decide.
Eileen S said:I do agree you are definitely worth what you charged, but I can see your husband's point of view as well. I struggle with price all the time. I KNOW I am seriously undercharging for my cakes, and if I was in a larger town I would charge more (I live in a small town in Northern Wisconsin), but where I live it is a sad fact of life that if your price point is too high you won't have any customers. So I have to ask myself if I want to be busy and continue to build a client base and continue to hone my skills? Or do I want to do just one cake every few months and charge more?
As an example, that ballet slippers cake I made? I charged her $35. I know, I know, that was at LEAST a $60 cake. The wedding cake I made I charged $250 - but it was my very first one and didn't know if it would even turn out o.k. If I tried to charge $30 for 2 dozen cupcakes I wouldn't get the order. So I'm just saying there may sometimes be an argument for lower pricing.
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The first time I make a difficult cake, I'll knock off some from the price - I figure that way, if there are flaws, I don't feel bad, and the customer feels like they got a good deal. For example, I charged $40.00 for the cake in my profile picture... it is a beach cake. I know I could charge $50 or $60, but I had never made it before, and I wasn't sure how I would do at carving the hut. It was also for a bridal shower at the school where I work. The lady who ordered it had just purchased a bunny cake for me the week before. (I used a Wilton 3D bunny pan and charged $30.00 - is that too much? I've been wondering... It only held 3 1/2 cups of batter, but it took a while to decorate.) Now, since she felt like she got such a deal on the beach cake, I'm making ANOTHER cake for her this week... That's three cakes in three weeks, just for one person! So I guess there is something to be said for making a customer feel like they got a deal. She was happy to pay $40, and I still made money - even a little more than I had planned, since she ordered again this week. So, everybody wins!
My problem with pricing is friends and family. I have a family member who wants a Shrek cake for her son's birthday, and a mini Shrek head for the little boy to have. I will have to make a 1/2 sheet cake. What do I charge for that? Do y'all give family discounts??
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Permalink Reply by Keri Reeves on
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I have a very specific list of friends and family that are allowed cakes at my cost and IF I'm not too booked for that date. They all understand that the special price applies to them ONLY, and even if they order a cake but it's for someone else, then that cake is full price. Sometimes it's really hard to stand your ground on pricing, but 90% of the time you'll find that if you stick to your guns people will pay what you ask, and the people who won't aren't really customers you want anyway.
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Permalink Reply by dav on
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hi Kathy,
it appears that the prices differ greatly across the oceans, in London I have purchased cup cakes from £1 and have been told that established bakers can charge up to £7 per cup cake. The $1.25 price tag is a bargain in the world of cup cakes.
It may be a good idea to be a mystery shopper and determine what the local suppliers charge. good luck
dav
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Permalink Reply by Renee Mullarney on
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I am the same way - I never know what to charge people. I did some research and came up with a price list but sometimes for friends I feel kind of funny asking them for the full price. Am I the only one that feels that way??
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Permalink Reply by Patti Gunter on
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Husbands have a habit of spouting off when most of them dont know what they're talking about! I know - mine does it all the time.
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Permalink Reply by Jennifer Ponder on
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Your reply helped me alot, I also live in a rural area in Northern Tennessee. I'm only 1 1/2 hours NW of Nashville, but getting the pricing right to be worth it/competative is crucial. Made me feel good to know that there are others due to rural area's have to adjust our pricing accordingly
Eileen S said:I do agree you are definitely worth what you charged, but I can see your husband's point of view as well. I struggle with price all the time. I KNOW I am seriously undercharging for my cakes, and if I was in a larger town I would charge more (I live in a small town in Northern Wisconsin), but where I live it is a sad fact of life that if your price point is too high you won't have any customers. So I have to ask myself if I want to be busy and continue to build a client base and continue to hone my skills? Or do I want to do just one cake every few months and charge more?
As an example, that ballet slippers cake I made? I charged her $35. I know, I know, that was at LEAST a $60 cake. The wedding cake I made I charged $250 - but it was my very first one and didn't know if it would even turn out o.k. If I tried to charge $30 for 2 dozen cupcakes I wouldn't get the order. So I'm just saying there may sometimes be an argument for lower pricing.
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Permalink Reply by Jenny Maynard on
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Nope. I think that is a fair price.
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Permalink Reply by Deah on
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Patti Gunter said:Husbands have a habit of spouting off when most of them dont know what they're talking about! I know - mine does it all the time.
AMEN!
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Permalink Reply by Kathy Kmonk on
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That's exactly what I thought the problem was!! My husband...not my prices.
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