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NMG
Joined: 27 Dec 2007
Posts: 34
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 Posted: Wed Jan 30, 2008 11:36 pm Post subject: How do you set prices? |
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| I am starting up a small cake business. I would like to know how other people have gone about setting prices for their cakes. I plan on doing plain regular sheet and round cakes decorated to specifications. Also I will be doing specialty cakes like gutairs and what not. I also know how to do fondant and will be learning how to use gumpaste for flowers etc. Eventually I'd like to tackle wedding cakes as well. Any insight would be helpful. Thank you! |
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Noelle
Joined: 24 Nov 2007
Posts: 36
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| Posted: Wed Jan 30, 2008 11:55 pm Post subject: How do you set prices? |
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| Do some research, get some prices from other stores, larger ones for that matter and get competitive - I always figure an additional 20% from the lowest and work within that range. Good Luck!! Sounds like a good business. |
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nml
Joined: 21 Nov 2007
Posts: 32
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| Posted: Thu Jan 31, 2008 12:13 am Post subject: How do you set prices? |
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| Just go to some of the bakeries in town and see what they charge, then make your prices just slightly lower than theirs. |
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nml
Joined: 21 Nov 2007
Posts: 32
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| Posted: Thu Jan 31, 2008 12:32 am Post subject: How do you set prices? |
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| If I were you, I would go to my local bakeries and check out their prices for your specific items. This can give you a good edge on competition and let you know what's too much and what is too little to charge. For the specialty cakes, you might be able to charge a nice amount. Also, check on line for the prices of your specific cake products. By the way, the guy who runs Charm City Cakes in MD, (ACE of Cakes guy) they charge a minimum for their specialty cakes, but you need to establish your business before you start charging that much. Good luck to you. |
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NoahHope
Joined: 25 Nov 2007
Posts: 27
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| Posted: Thu Jan 31, 2008 12:50 am Post subject: How do you set prices? |
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| First and foremost, I would go and look at any other local bakeries and see what their prices are so you know what your competition is asking.Second, I would ask yourself what you are willing to pay for it--- set up a poll online and ask your friends and community to anonymously answer your questions so you can get an idea of what they would be willing to pay.Take a look at what your business is costing you- materials, rent, bills, etc--- you need to make sure that once business is going the prices cover all of that and then leave some left over for you.Finally, ask yourself what you think your efforts are worth. What prices will pull in the customers? What prices will keep them coming back? |
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nml
Joined: 21 Nov 2007
Posts: 32
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| Posted: Thu Jan 31, 2008 1:09 am Post subject: How do you set prices? |
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| 1. Calculate your costs, all of them, to produce each item.2. Multiply times 4 or 5, or more.If you don't multiply your costs by at least 4, you can never have a "half off" sale, or wholesale them to someone who gets 50% off...Also consider, payments systems such as PayPal take 30 cents plus 2.9% of the gross amount, so you really need to multiply by at least 5. |
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NoahHope
Joined: 25 Nov 2007
Posts: 27
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| Posted: Thu Jan 31, 2008 1:27 am Post subject: How do you set prices? |
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| I agree with all the answers you already have. You don't won't to over charge right away. Good Luck I'm so happy for you. |
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