Pricing?

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Permalink Reply by Teneisha Williams on July 14, 2010 at 11:52am

Faith:

I know I under charge...but my clients know it's because I'm using their cakes for practice. I've had only one loss so far...a feeeeeew break evens and a few small profits.

What I have been doing is finding the true cost of the practice cakes in terms of material and ingredients...then I will add my mark up...and set my prices which will be FINAL...I'm about making money from doing cakes...and If everybody wants an expensive cake in terms of quality and design...and wants to not pay the cost that I give them..then I will just forget about it...I will turn it into a hobby and decorate dummy cakes...or teach...:)

I don't think they understand what goes into a custom cake...I don't use cake mixes...that's the first thing...and I try to use the best ingredients...even if the design is not all that...the taste wows them...and the word is spreading...so my cakes are worth it....

They will want to compare the prices with the local bakeries that dump 50lb bags of cakes mixes into a mixer and add water or whatever...then ice with with commercial icing...then they go and pay for the more affordable...cuz those cakes have no love....:)

I think I am building a steady client base...I will have to make my prices competitive...especially because I want to do mostly wedding cakes...I have some real good competition here...so I have to break thru with good costs...

Sherry Qualls posted a costing matrix on CWB once...which she uses to cost her cakes...it's very interesting...I saved it on my computer at home...I you are unable to find it...I will post a copy here later...

Permalink Reply by Kerry on August 12, 2010 at 1:50am

HiFaith

This-is-just-an-example-make-a-total-of-what-ALL-the-ingredients-cost.You-can-then-multiply-same-by-2-3-or-sometimes-4.The-higher-you-go(ie-is-multiplying-by-2,3-or-4-depends-on-the-intricacies-of-your-cakes).

Dont-undercharge-for-your-talent-and-hours-of-work.Once-you-think-its-worth-the-price-then-charge-that-price.Far-too-often-many-people-want-things-not-just-cheap-but,even-free-too!!!

Please-excuse-the-typing-for-some-reason-keyboard-is-gving-alot-of-trouble

Good-Luck

Kerry

Permalink Reply by Faith Gealey-Brown on August 13, 2010 at 8:17pm

Thanks for the feedback Kerry! Just wanted to share with everyone that I finally updated my price list and they are prices that I think are definitely fair to both me and my customers :).

I've been getting slow, but steady increases in my orders so I'm very excited about it!