Hello Lovelies,
Hope we are all doing well and caking as usual.
Today's discussion is about how to price your baked goodies. I recently joined a group on whatsapp called the Cake Network (an Initiative of BakeUHappy, Owerri) and I posted a picture of wedding cake I made recently and the issue of pricing your cakes came up so I thought I should share my thought about it.
Pricing is an aspect of business people tend to struggle with. It could be due to the fear of loosing customers or afraid of comments about how expensive your product is and how they could get it cheaper else where, the list goes on and on and on.
Know your Cost
This is a very important factor that you need to consider when pricing your cakes. There are a number of things that needs to be considered before you put a price on your cakes (or any baked goodies you offer), this is where you get out your receipts, a pen, paper and calculator to know what you will spend to make a cake.
Just a Cake
As a cake maker, you will hear this a lot from your customers "i can't pay that amount for just a cake". Dear customers, it is not just a cake, it is the center piece of your event, be it wedding, birthdays, house-warming, anniversary, christening etc. Your cake will be seen and talked about by your guest. Customs cakes cost more than basic cakes this is because of the design, time, ingredients and equipment that will be needed to create that unique cake that will be specific for your event.
Supermarket cake/ Bakery shop cake
Never compare your cakes with store bought cakes. When your are pricing your cakes, do not compare your price with the supermarket cakes. What you need to know is that most of this supermarket cakes have been baked in mass production and frozen for weeks or months however your cakes are freshly baked to the customers request.
Location
In pricing your cakes, your location needs to be factored into the price. This is because the cost of supplies, ingredients may vary depending on your locality. For example, if you live in Lagos but stay around Agbado/Ijaye or Surulere, the cost of supply/ingredient will be different.
Competitor
Do not under price your cakes because you want to win over your competitors customers. That is not an healthy way to do business. You don't know why the competitors price is set that way, thus you need to factor your own pricing.
I hope this help has been helpful. Please feel free to drop your comment or questions.
Have a Caketastic day...
xoxo...
Hope we are all doing well and caking as usual.
Today's discussion is about how to price your baked goodies. I recently joined a group on whatsapp called the Cake Network (an Initiative of BakeUHappy, Owerri) and I posted a picture of wedding cake I made recently and the issue of pricing your cakes came up so I thought I should share my thought about it.
Pricing is an aspect of business people tend to struggle with. It could be due to the fear of loosing customers or afraid of comments about how expensive your product is and how they could get it cheaper else where, the list goes on and on and on.
Know your Cost
This is a very important factor that you need to consider when pricing your cakes. There are a number of things that needs to be considered before you put a price on your cakes (or any baked goodies you offer), this is where you get out your receipts, a pen, paper and calculator to know what you will spend to make a cake.
- Ingredients: flour, sugar, butter, eggs, baking powder, chocolate, vanilla and other specialty ingredients etc.
- Baking supplies/equipment: mixer, oven, tables, cooling racks, pans, bowls, food coloring, luster dusts, fondant, tools, boxes, cake stands, cake boards, dowel etc.
- Overhead: rent, utilities, business cards, posters, office supplies, computer
- Delivery: gas, wear and tear on your car, your time
- Time: Set a salary for yourself and charge accordingly, you need to also be compensated for the time spent in creating your products.
Just a Cake
As a cake maker, you will hear this a lot from your customers "i can't pay that amount for just a cake". Dear customers, it is not just a cake, it is the center piece of your event, be it wedding, birthdays, house-warming, anniversary, christening etc. Your cake will be seen and talked about by your guest. Customs cakes cost more than basic cakes this is because of the design, time, ingredients and equipment that will be needed to create that unique cake that will be specific for your event.
Supermarket cake/ Bakery shop cake
Never compare your cakes with store bought cakes. When your are pricing your cakes, do not compare your price with the supermarket cakes. What you need to know is that most of this supermarket cakes have been baked in mass production and frozen for weeks or months however your cakes are freshly baked to the customers request.
Location
In pricing your cakes, your location needs to be factored into the price. This is because the cost of supplies, ingredients may vary depending on your locality. For example, if you live in Lagos but stay around Agbado/Ijaye or Surulere, the cost of supply/ingredient will be different.
Competitor
Do not under price your cakes because you want to win over your competitors customers. That is not an healthy way to do business. You don't know why the competitors price is set that way, thus you need to factor your own pricing.
I hope this help has been helpful. Please feel free to drop your comment or questions.
Have a Caketastic day...
xoxo...
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