I have heard many times, people struggle with pricing their cakes. Did you know that before you can price your cakes, you need to do costing?
Thinking about that word gives lots of cakers nightmares. We all want to make money with our passion and skills, but yet we still do so many things wrong.
I am going to tell you what NOT to do when costing and pricing your cakes:
Do not ask on Social Media: "How much would you charge for this cake?"
I understand if you are a beginner, but costing is so different for all of us. Someone in the group might give you a low price because they buy their ingredients in bulk. Another will have a price that is extremely high because this person might be a decorator that is already well-known and have set clients. She can ask that price, as her clients know she is worth it. You cannot compare your work with others. You have to do some costing!
Do not say: "If I do not quote lower, I will lose the order".
That is a myth! I know the competition out there is tough, but you need to quote what you are worth. You need to be honest with yourself, taking the cost of your ingredients, wear and tear, labor and time into consideration. Most clients do not want to be associated with the "cheap cake lady". Anyways, you do not want that client that ask for cheaper rates. Spare yourself the headaches and stop that right there before you have a client that you do not really want.
What if I overcharge?
Seriously, if you work out your costs and add your hourly labor. It is impossible to overcharge. Just be realistic and again honest with your skill level.
I believe most cake decorators that work for themselves are so concerned about the pricing issue because they might feel the price of something you eat should not be so high. They feel guilty when it comes to pricing and that is why these questions are raised.
When it comes to pricing you need to understand that there are a variety of factors present. Beside your level of expertise, the ingredients, and labor; costing is also determined in what area you live, who your clientele will be and what your goals and plans are.
Once a year I offer an in-depth course that includes costing. We go into detail and also make use of a downloadable populated template, where I show you exactly how
to solve your costing nightmare once and for all. If you want to be part of this course,just click here!
If you have any comments or questions, please feel free to ask below!