I'm working on getting my cake business started and wanted some advice on pricing software. I need some idea of how to charge for my cakes.
I have read in several places that you should go to the area bakeries and see what they charge. However I feel a bit like a spy, I meant going around to the area bakeries, asking them the prices of cakes and then using that information to price my own cakes. I won't undercut them because I wouldn't want anyone to do that to me. I just need to figure out how prices.
Look at cake boss software, it give you pricing guides, sample contracts and all types of other things.
So, does anyone have Cake Boss software? How do you like it? Is there other software out there?
I'd use Cake Boss for sure, I find it invaluable.
It isn't called spying, BTW...its called "Market Research". Of course it is going to cost you $$. Buy something small, ask about custom orders, look at their books. If you are known to them, enlist help from friends and family members. You have to know what the competition is charging for what, and what their product is like in order to make an informed decision about how you compare and what your pricing should be in relation to theirs.
Thanks Allyson and Stacie, I'm going go ahead and get the Cake Boss software. I'm also going to start my "market research", thanks for the support. I"m really looking forward to getting my business going.
I just read my response and should clarify that by "look at their books" I meant their picture books, not their business paperwork! I doubt they'd show you that. I should read before I hit "add reply"
I did some "market research" this morning at a couple of local bakeries. I couldn't get anyone to get me any idea of what a custom cake costs, both wanted me to make an appointment/consultation (one place charges $50, which if I were to order a cake it would taken off that price, what ever that be). They wouldn't even give me a ballpark. So, besides getting some yummy treats, I really didn't get any answers and still don't any better idea how or what to charge.
Any other suggestions I would greatly appreciate it.
Looks like you are going to have to do a few consults. These should be tax deductible as business expenses, check with your tax guy.
Thanks Stacie, I will do that, already have an appointment with him in a couple of weeks.
My method was to telephone a couple of the cake shops who had overheads and ask how much it would be for this kind of design and the size of the cake required. But call me callous but I would charge less - as a home decorator and my customers would be delighted. My designs were every bit as good as the shop and they had saved money. Is this spying? Perhaps - also market research and ensuring that your business is operating within sensible price brackets. But also my pricing at the time was in order to secure some additional money in order to put food on the table. So at the time - investigating the local market prices and making sure my price was comparable but slightly cheaper - was my only option. (Had chucked out alcoholic husband - who paid zero for anything :( so had to get on with it the best I could! )