how to price your cakes for profit

The Real Reason You Are Not Making Money In Your Cake Business

Okay you have finally taken the push and have started your cake business, maybe part or full time. You have done most of the necessary things. you have the passion You have done business card, printed fliers and have gone for training to improve your skills, but still you are hardly getting any orders.

And when you finally get an order, the customer prices your cakes so low that you are telling yourself what is the point.

If this is you, please continue reading.

The hustle is real but here are some mistakes you probably are making that is preventing you from making money.

 

1. You are Selling Cakes That People Do Not Want To Buy

Maybe you want to do something different, like maybe do different flavours of cake. Maybe you offer unusual flavours like beetroot, peanut butter, avocado, wheat germ, etc. Yes if you were abroad, you could get customers but here, there are few adventurous types in Nigeria.

So it’s best you stick to the common flavours like vanilla, chocolate, strawberry, lemon, chocolate and red velvet. Maybe when you become more popular you can expand your product range after you have done enough research and offer those unusual cake flavours.

 

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2. Not Realizing You Are In Business

You are still seeing yourself as a hobby baker, even though people are paying you money for your cakes. Once money is exchanged, this is a business transaction even if you are selling to your sister or a close friend.

 As a business owner, things become different. You are now a professional baker and you should see and portray yourself as such.

3. Not Keeping Track of Expenses

 You have to keep track of what you are spending. You have to form this habit or keeping bookkeeping books and keeping receipts and not using your personal money to pay for cake stuff.

A helpful guide is a webinar I did- Booking Systems for Cake Businesses. Click here and here to watch. (Just send an email to cakelady@bakingbusinessschool.com.ng to get the password).

 

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4. Waiting For Customers to just Miraculously Appear

Customers are not going to magically appear. They just don’t fall from the sky. Yes it will be lovely if that happens. You have to go out there are find them. And that means you have to market your business to the hilt. If not you will just be staring at the sky. I have a Marketing Course that can help. Here are the details.

 

5. You Discount and Negotiate Too Much

Once a potential customer starts complaining about your price or question your pricing or do not immediately order, you start offering discounts.

I know especially when you first start and really want to make a sale you give discount, offer extras, and promise all sorts of things just to get that order.

The problem with this, is that I might set of a trend and sooner or later you will be known as the cheap baker and you will be working for next to nothing.

 

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6. You Are Not Confident

You are unsure of yourself or your skills. You still view yourself as a beginner or a learner. When you are describing your business or describing a cake you want to do for a customer, you do not talk in a confident tone. 

You do not own the conversation. You don’t give ideas and just accept whatever the customer wants. When you do this, people can tell that you are a learner, even though you may be the best baker in town. You are scared of charging high prices, you don’t sound confident about your skills, you can’t really articulate why someone should pick you to make their cakes over another brand, and you can’t say no to the customers who price you cheaply.

Need help? In the Ultimate Guide to marketing Your cake Business, it teaches you how to be more confident in your marketing. Click here for more details.

 

7. You Are A Jack Of All Trades

You are one of those people that have multiple businesses. You not only sell cakes, but also clothes, shoes, toys. You also are a network marketer.  You need to concentrate on one thing or at least a similar line of business. People will just get confused not knowing what exactly you do. In your profile you advertise all sort of stuffs. If you are serious about your cake business and want to make a success of it, then you should let go of the others and concentrate on cake.

Whew!

I’m going to stop at these reasons ( so I do not overwhelm you), but believe me there’s still so much more.

There are a lot of reasons you might not be making money, and my question is always this:

“What are you going to do about it?”

“Are you going to allow this your business that you are so passionate about go to waste? Because if you keep going from month to month without making money…it’s only a matter of time”

Let’s solve this problem together.

Let me help you make your money

Need help in your Pricing.  Then join this Masterclass- Pricing your cakes right to build a profitable cake business.

This course is a 30 day Masterclass program that will help you gain the confidence to price your cakes, how to market to get customers, how to price your cakes easily, how to deal with customers and also pricing system to have in place for your cake business so that you can build a profitable cake business.

I am sure you know that this is the course for you…so Join the Masterclass.

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cake business pic

 

Start an Online Course           See our Free Resource Library          Read our Blog

                Register for a Mini Course                 Start your Cake Business Today

 


 

me16

About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.

7 Things You Need To Do To Make Potential Customers Book Your Cakes

How many times has this happened to you?

…..the customer requests a quote and then they disappear.

…. You spend a long time with the customer talking about the cakes you do and when you sent the invoice, you no longer hear from them.
….the customer had a great time at the cake tasting but didn’t book with you.
….the customer is indecisive, so they need to think about it or ask their partner.

All these things are just so disappointing and frustrating.

How are you to grow your cake business when customers are not booking cakes with you, much less about making any money?

You have tried various tactics-

-You try to learn a new sales method to get them to book with you;
-You try to copy another baker. 
You are just overwhelmed because you have tried everything and it’s like nothing is changing. 

There can be various reasons why customers are not booking with you, it could be that  they can sense your desperation, or your selling skills is not that good, or it could be your location, prices, your branding, it could be a lot of things.

So to help you, here are 7 things you need to do to start making potential customers book with you.

 

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IS PRICING YOUR CAKES A PROBLEM FOR YOU?

Register for our Pricing Masterclass here.

 

Tip 1: Be sure to talk to at least 2-5 people every day about your cake business 

Talk to people. Tell them what you do.

You cannot just sit with your phone every day hoping that customers will magically appear.

Too many bakers rely on the Hoping and Praying Method for getting customers and really it doesn’t work. 

Spending time looking at recipes or just posting occasionally on Facebook will not make you the type of money you need to sustain your business. You must get out of the house.

If you are determined and make a commitment to talk to 2-5 different people about the type of cakes you make, and what you can do for them, you’ll be surprised at the change this can make in your business. Don’t forget to give them your business cards or flier.

 

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Tip 2: Know where your target market is and go and meet them

Same thing with the above. Yes you should talk with people everyday. But you can go one step further and talk to your right people. If you are selling wedding cakes and you mostly talk to mothers, you won’t be getting many orders for wedding cakes.

You need to do your research, find out where your ideal customers hang out and go and market there.

If your ideal customers are mothers, you need to go to schools, churches, bible study groups, PTA groups and so on.

Tip 3: Be present on  social media Groups

Be very visible on various social media groups especially on Facebook and Instagram. But don’t just join those groups and be silent. Make yourself noticeable by providing value, support and help.

This is a long term marketing strategy so don’t expect to get customers right away.

Remember people have to see you more than 7 times before they will even think of ordering from you. That’s why you need to be very present in these groups.

So join these groups add great, valuable, content, answer questions, engage in conversations. This will help you build your know, like and trust factor.

 

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Tip 4: Follow up.

You need to follow up. You can be leaving money on the table if you do not follow up.

If an inquiry fails to get back to you, call them up and ask them if they wish to go ahead with the order. If after sending your quote, you do not hear from them, call them and give them other price options to meet their budget.

So if you want more money, make sure you follow up and you will see an improvement to your sales.

 

Tip 5: Stand out from the crowd

The baking industry has a lot of competition and all bakers are going after the same customers. So you need to do something to make them come from you.

One idea is to offer them something free to pull them to you. Tell them that if they order a cake from you, they will get a free box of cupcakes. Just make sure you’re giving something away of value. Something that you can charge for.

 

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Tip 6: Be a solution provider

You’re in business so you can offer solutions to customer’s problems. Think about what solutions you can offer to solve your customer’s problems.

As a baker, you make cakes to mark memorable occasions. What if you come across a customer who need a cake urgently for that day, can you solve that problem? Or if a customer also needs help decorating the cake table, can you do that?

Just think of common issues that may crop up when someone needs a cake and market what solutions you can offer them.

Tip 7: Ask for referrals

Your happy and satisfied customers are happy to recommend your business.  Reach out to your customers and ask them if they know anyone that has a birthday coming up and if they make an order, then that customer will get something for free sent to them.

 

Will love to hear from you. Can you think of any any additional ways to make potential customers book from you or have you tried some of these tips. How did it work for you? Comment below please.


 

pricing image

This quarter I will be relaunching the Pricing The Cakes Right To Build A Money Making Cake Business.

Pricing The Cakes Right To Build A Money Making Cake Business is created for bakers so that they can achieve their cake business dreams of building a moneymaking cake business.

In this Masterclass you will learn:

  • How to gain confidence in pricing and selling;
  • How to market to the right customers;
  • How to price cakes easily without stress;
  • Customers relations: How to deal with customers so they accept your price always;
  • Systems you should put in place to grow your cake business

If you are interested in this Course (which i highly recommend you do) and want to be part of the waiting list.

Just register here below or go to this link:

https://bakingbusinessschool.com.ng/pricing-your-cakes-masterclass/


 

cake business pic

 

Start an Online Course           See our Free Resource Library          Read our Blog

                Register for a Mini Course                 Start your Cake Business Today

 


 

me16

About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.

 

6 Rules For Success In Your Cake Business

We all want success. We want to be successful in life, in our finances, in our families and in our business.

To have a successful business, it takes a lot of time, sacrifice and hard work. You could fail at a number of things trying to reach your goal but the important thing is to never give up.

Success is not a straight line; it consists of a lot of loops, working through the night, not spending time with the kids, lots of No’s and rejections. Very much like this picture. But eventually we will get our breakthrough.

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To make things a tad bit easier I have compiled 6 rules of success to help you In your cake business so the road to your success can be a little less crooked.

 

RULE #1: Stick to one thing

Apple has the iPhone. Coca Cola sells carbonated drinks. Sony does electronics.

The most successful companies and people always have one thing they’re known for. And they focus on refining and honing that particular skill. 

This is the opposite of what most people think. Most people think they have to stay “busy”, do a lot of business at the same time, do lots of things to be successful. 

Have you come across a serial entrepreneur, one that does a number of things at the same time? She sells clothes, does small chops, sells cakes and also a party planner.

If you are selling cakes stick to it. If you don’t, you will only confuse your customers. Who may not be sure what exactly you do.

Yes you can do other business relating to the food industry if you cannot help yourself.

Real success comes from a focus on doing the right things one at a time not more things just for the sake of doing them. 

That’s one of the key reasons I created the Pricing your cakes right to build a money making cake business. This is where i give you a step-by-step system, on how to price and grow your cake business. Register to be on the waiting list here and you will be informed when it opens. 

If you want to build a successful cake business in 2018, I’d encourage you to stick to selling cakes and only bakery related products until you are successful.

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RULE #2: Don’t skip on Quality

The success of any cake business depends largely on the quality of your cakes. Develop a range of baked goods that stand apart from those sold at other places or other cake businesses.

Creating a niche for yourself, such as stunning cupcakes or unusual pastries, can help set you apart and build a loyal customer base. Even the most beautiful cake will not impress anyone if it does not taste good, though, so take the time to build your skills and learn proper techniques to create delicious treats that will ensure repeat customers for your business.

RULE #3: Ask for referrals

Word of mouth is essential for the growth of your cake business. You can sustain a good income by just having your loyal customers vouch for your business. To encourage this, here are a few ideas:

  • When you deliver a cake, give the customer some of your business cards and encourage them to share with their friends.
  • If a customer sends you a message that they liked your cakes, thank them and then send them a link to your Facebook business page asking them to leave a review.
  • Make it easy for your customers to give referrals and support your business. Tell them how much you appreciate them recommending your business.
  • Tell your customers that if they recommend your business to a friend and that friend makes an order, they will receive a free box of cupcakes as a thank you.

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RULE #4: Research your market

You should research the market to determine how you can give potential customers what they want — and how much they are willing to pay for it.

For example, there may be a lack of sugar free baked products in your area, and focusing your business on those types of items can attract customers and increase your chances of success.

No matter what you choose to specialize in, you should set prices that reflect those costs, and the cost of your time to create those type of baked goods. For example, if you use only high quality ingredients, your costs will be higher than average, and your prices need to reflect those costs.

 

RULE #5: Set rules for your business

As a cake business owner, to avoid challenges or problems it is good to set rules or policies in place that allow you to better serve your clients. Some rules you can set in your business are:

  • Demand a deposit- when you require a deposit when placing an order, it means spending your limited time with only people who are seriousabout ordering a cake
  • If it is a large order, like a wedding cake, they must pay the balance in full, 2 weeks in advance.
  • Make it a standard that Friends and Family only get a 20% discount. Friends and family can be our worst customers; they make last minute orders and want it for free. So when such family want a cake, you can tell them that you are a growing business and cannot give them a free cake but will give them a 20% friends and family discount.
  • Set a minimum order so you do not have to deal with people who only want to order 2 cupcakes.

 

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RULE #6: Dream Big

I came across a saying that someone said. The saying goes thus, “You can either start a local coffee shop or you can start Starbucks. Either way you’ll work the same amount of time, so it’s better to start Starbucks. 

What this means is that there is no reason to think small. Dream big and have big goals. 

Each month I set a series of goals. The money I want to make, the products I want to create and sell, the books I want to read. Every day is planned at achieving my ultimate goal of having a mega successful and profitable cake business.

It’s vital you have a deep purpose, a goal, something that makes you jump out of bed each morning. If not you will just be going day by day going with the flow.

In the Pricing your cakes right to build a money making cake business I provide goal planning workbooks, action plan and marketing plans to help you get started in planning your cake business success. Register for the master class here.


 

pricing image

This quarter I will be relaunching the Pricing The Cakes Right To Build A Money Making Cake Business.

Pricing The Cakes Right To Build A Money Making Cake Business is created for bakers so that they can achieve their cake business dreams of building a moneymaking cake business.

In this Masterclass you will learn:

  • How to gain confidence in pricing and selling;
  • How to market to the right customers;
  • How to price cakes easily without stress;
  • Customers relations: How to deal with customers so they accept your price always;
  • Systems you should put in place to grow your cake business

If you are interested in this Course (which i highly recommend you do) and want to be part of the waiting list.

Just register here below or go to this link:

https://bakingbusinessschool.com.ng/pricing-your-cakes-masterclass/


 

cake business pic

 

Start an Online Course           See our Free Resource Library          Read our Blog

                Register for a Mini Course                 Start your Cake Business Today

 


 

me16

About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.

 

How To Price Your Cakes Better

When I first started my cake business some years back, I had no business knowledge. I had no business plan, did not know what to charge for my cakes and was just going through the flow.

All I had was a passion for baking and a dream. I knew I wanted to sell cakes so I could give my children a good life.

So I started my business and it showed me pepper. Lol.

Not only did I have to learn a lot of things for myself, I was the baker, answering emails and inquiries, marketing manager, administrative manager, delivery person, shopper. I would work from early morning to late at night.

One of the reason I stated the business was that I wanted to spend more time with my children, but I was still working long hours and hardly seeing them even though we were in the same house.

I was working myself to the bone and I was still not making money. By the time I bought ingredients, groceries, petrol, paid my nanny’s salary, school provisions, my money was gone.

I was like what was the use. I might as well as stayed being a lawyer and collected my salary at the end of the month instead of killing myself with flour and butter.
So why wasn’t I making money?

Reason– I was charging too small. I was so scared of pricing my cake at a high price. You could say I was the cheapcakelady. Customers used to bully me about quoting a lower price and I will succumb.

I was so not confident in pricing my cakes that I would ask the customers if the price was ok.

I remember doing a lovely buttercream big 12 inch lemon cake ( I even used real lemons, (foreign ones, you can imagine how much they cost) with lots of intricate roses on it that took me like 2 days just to do all the roses and you know what they paid- N7,000.

I am so embarrassed about it now. I used my own money to fund their cake.
But really I was my fault. I accepted that price from them.

I didn’t think I was good enough so that was why I charged very low for my cakes. I was not bold enough to voice my worth to my customers so they dictated my worth for me.

This should not be so.

I felt like quitting a lot of times. But I had no choice but to keep at it. I mean I had nowhere to go. What will I do for money?

A famous quote by Eleanor Roosevelt says that ‘No one can make you feel inferior without your consent’.

I was allowing others to direct things for me, because I was so afraid of losing the order.

Eventually I had to overcome this and be more confident in my pricing. I put up certain structures in place and made sure that a customer would not be able to price me down. I stopped being pressurized to give a price to the customer at the spot- I will get back to them.

I was able to quote and price confidently and with a purpose to secure the order.
And you know what; I hardly had a customer that didn’t place the order. Infact I think it was only 2 customers last year that did not get back to me.

So there is a way for you to quote any price to a customer and get that booking.
If you are like how I was, please don’t despair, the ‘Pricing your cakes right to build a money making cake business’ masterclass is starting this week,

I will reveal the strategies that have worked for me that will get customers to pay the price you want for their Cakes.

I will be relaunching this course soon; so to be on the waiting list just register below with your email address and you will be informed first hand when it is ready.

You will no longer be known as the cheapcakelady but the ultimate cake queen.

So now let me give you 10 strategies to help you price your cakes better:

Pricing Tip #1

Adopt a pricing strategy

There are various strategies you can adopt to price your cakes. Once you have worked out the labour and costing involved you would group certain types of cakes together and come up with an average price. For example you can have a 3 tier pricing strategy. Where you have a 3 price options for any customer depending on their budget. Where you have a low, middle and high priced option.

I will be teaching  different pricing strategies in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

Pricing Tip #2

Determine you profit percentage

Determine how much profit you want to make. This is a vital step to add if you want to grow your business. What type of profit do you want your cakes to have? 2.5%, 5%, 10%, 40% or more? There is no right or wrong answer. Start with a number that is comfortable for you and build it from there. The important thing is to have a profit percentage

 For home cake businesses I would suggest aim for 30-50% profit margins

I will be teaching exactly how to work out your profit margins in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

 

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Pricing Tip #3

Work out the cost of Ingredients, Supplies and Utilities

Record how much it costs to make each type of cake you make. How much do your ingredients and supplies cost? How much does the gas, water, electricity do you use when making each cake? Do not guess. Everything counts. Work out the exact costs for each type of cake you make.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

 

Pricing Tip #4

Research your competitors.

Research your competitors and see how much they charge for the type of cakes you make. Once you do, choose a price in the middle of the range.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

 

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Pricing Tip #5

Work out the timing

In order to price your cakes effectively you need to know in detail how long each cake takes to make from start to finish. Without understanding this aspect you will be literally be saying a price for your cakes out of the air!  So make a note of everything. Do not guess! Record everything. From how long it takes you to mix, bake and decorating the cake, to washing up, invoicing for the order, answering enquires, shopping for the ingredients and more. Everything you do to make your cake, make sure you record the time it takes.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

 

Pricing Tip #6

When should you raise your prices?

The time to raise your prices is when: #1 – you are not making any money or your costs are not being covered.

Learn when and how to raise your prices in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

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Pricing Tip #7

Decide how much you want to pay yourself

Next decide how much you want your rate is per hour then work out it out.  Do you want to work for N500 an hour or do you want to work for N2,000 per hour. There is no right or wrong answer. Each business, wants and needs are individual to the business owner.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

 

Pricing Tip #8

Figure out how much you want to earn

Write down how much you want to earn from your cake business each month or in a year. Then start incorporating that figure into your cake prices. 

For instance if you want to earn N50,000 this month, you just have to sell 5 Nos. N10,000 cakes. 

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

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Pricing Tip #9

Survey potential customers

What is the general budget for your potential customers to pay for your cakes? You need to have an idea what your ideal customer will happily pay to buy a cake. If you find out that most of the people want cheaper cakes, don’t just drop your prices yet, maybe you should widen your search and look for those customers that can pay the price you want for your cakes.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

Pricing Tip #10

Decide the pricing bracket you want to belong

Decide which pricing bracket you want your cake business to belong to. Want to be in the low or high end priced group. For the low end group, your customers will be family and friends, wholesale, food stalls.

For the high end price group, these will be big birthday celebrations and weddings.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

 

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Pricing Tip #11

Follow up

If a customer doesn’t call back, don’t just think they are not interested. People forget. So you should take the initiative and contact the customer back and ask if they want to go ahead with the order. Don’t feel bad if they say no. When you continue following up eventually you will get a yes from a customer.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass.See all what you will get in this Masterclass.

Pricing Tip #12

Calculate Method

Do this for each type of cake you create.

    • Take the timings it takes to make this cake from start to finish (include everything!) then multiply this with your hourly rate.
    • Calculate the cost of the ingredients, supplies and utilities. Add this number to the number above.
    • Then work out your profit percentage.
    • Add the profit percentage to your ingredients, supplies, utilities and labour total.
    • You now have the price for this cake.

Learn more in the Pricing your cakes right to build a money making cake business Masterclass. See all what you will get in this Masterclass.

 

 


 

pricing image

This quarter I will be relaunching the Pricing The Cakes Right To Build A Money Making Cake Business.

Pricing The Cakes Right To Build A Money Making Cake Business is created for bakers so that they can achieve their cake business dreams of building a moneymaking cake business.

In this Masterclass you will learn:

  • How to gain confidence in pricing and selling;
  • How to market to the right customers;
  • How to price cakes easily without stress;
  • Customers relations: How to deal with customers so they accept your price always;
  • Systems you should put in place to grow your cake business

If you are interested in this Course (which i highly recommend you do) and want to be a part of it, just send me an email at cakelady@bakingbusinessschool.com.ng requesting for payment details.

Or you can just fill in the below form and I will get back to you with details of the Masterclass:

Classes start on 4th October 2018, so don’t delay.

 


 

me16

About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.

 

 

 

 

 

How To Stop Attracting Customers Who Just Want Cheap Cakes

As a cake business owner, you have probably been in a situation where you felt only customers who want cheap cakes call you or you mostly attract customers who are not willing to pay the right amount for your cakes or do not appreciate the quality of work you put into a cake. For most business owners, this is not strange at all.

Most people do not know the skill, effort and resources that go into making a cake so they undervalue your work or they want to pay as little as possible.

Most times we cave into their bullying and demands and end up under pricing ourselves, making no money and then feeling bad afterwards.

These types of clients are ‘low quality’ customers, and they are everywhere so there is little you can do to change that.

Instead of trying to convince these types of customers to pay the correct price for your cakes, your business should focus on attracting ‘high end’ customers or those customers who can afford your cakes.

And here are some 5 ways to attract them:

  1. Create a Customer Profile

To attract high-end clients, you must first know who they are, what they like, what types of cakes they like, and what products or services they need, where they are, where they go to, what attracts them and so on. Then find ways to

Finally, look at customer circumstances to create an idea of how potential customers develop an interest in your product or service. Then just go and market to them.

Doing so will give you a roadmap of what your marketing strategy will be like.

For instance, you may need to find a contact in a school in a high brow area to see whether you can sponsor an event by bringing in your cakes or provide cakes for free at their next PTA meeting. When you are in, make connections, talk to them about your business and give out your business cards.

Once you get past the “unknown and untasted” hurdle, you should have a much easier time selling to them.

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2. Let Price Reflect the Quality of your cakes

If a business wants to appear thoroughly competitive and professional, the price it charges should always reflect quality like no other.

When a price is too cheap, it means the product is of low quality and so people will not expect to pay much for it.

If the business is using high quality ingredients, your website is up to par, your service is impeccable; in the mind of the wealthy, there’s no reason for your cakes to be cheap.

If your prices are higher than the rest. Then there is a reason for that. Let them see it in the services you render and also tell them why.

3. Pay attention to packaging

Good quality packaging is a great way to make your products stand out from the crowd. Not only will unique packaging make your products memorable, but packaging has been found to be one of the most important aspects when it comes to a customer’s decision to buy a product especially the high end ones.

Having beautiful packaging sets it apart from mass-produced generic offerings.

Great packaging should be part of your cake business branding and deserves plenty of attention. Presenting your products in gorgeous packaging reinforces the idea that when it comes to your bakery products that you are classy, top notch and worth the extra naira spent.

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4. Offer Great and consistent Customer Service

Be ready to attend to their needs, be classy, eloquent in your phone conversations and consistently ready to help because high end clients are used to impeccable service. Also they do not like to wait.

If you are unable to give them a price at once, tell them you will give them a quote in 10 mins, and keep to that time. Send out your invoices on time. If you tell them you are to deliver at a certain time, make damn sure you arrive at that time or even before.

Also after care is important, send a thank you email asking them how their event went and if the cake was satisfactory. If it was a very big order, a few days later you can send them a thank you card with a box of cupcakes. It is all about keeping you in their mind.

5. Be willing to spend more to attract quality clients

Like attracts like. If you want to attract high income people, then your business has to appeal to them. Wear custom attire with your branded logo on it. Again pay attention to what you are posting online, upgrade your website. Get real email addresses that contain your domain name. Always be looking to be featured in the media.

You are an expert at what you are doing, so be seen as such. Do live shows on your social media platforms. Look at collaborating with companies where your target customers patronise. Advertise where you will reach quality clients.  You may need to invest time and money in branding, marketing, materials, events, technology, and lastly your personal image.

If you want to play with the big boys, you must be willing to do the work. There is no magic wand you can wave to get the customers you want, but as long as you follow these tips and make plans in your marketing strategy you should start getting the right customers.

It’s far easier to grow a successful business by targeting the higher end of the market rather than dealing with difficult consumers who argue about your price. Just make sure you are positioned for success by creating a new marketing strategy that will target and appeal to the upper end of the market.

In the end it will be worth it!   


pricing image

This quarter I will be relaunching the Pricing The Cakes Right To Build A Money Making Cake Business.

Pricing The Cakes Right To Build A Money Making Cake Business is created for bakers so that they can achieve their cake business dreams of building a moneymaking cake business.

In this Masterclass you will learn:

  • How to gain confidence in pricing and selling;
  • How to market to the right customers;
  • How to price cakes easily without stress;
  • Customers relations: How to deal with customers so they accept your price always;
  • Systems you should put in place to grow your cake business

If you are interested in this Course (which i highly recommend you do) and want to be part of the waiting list.

Just register here below or go to this link:

https://bakingbusinessschool.com.ng/pricing-your-cakes-masterclass/

 


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Start an Online Course           See our Free Resource Library          Read our Blog

                Register for a Mini Course                 Start your Cake Business Today

 


 

me16

About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.

How I Made N100,000 For One Cake Order

This past week I have been so busy with cake orders. I had to do a massive 3 tier cake and some birthday cakes.

The 3 tier cake was a bit of a challenge for me. I don’t really like doing tiered cakes, so that is why I do not do wedding cakes. The cake required an array of flowers and I did enjoy making them.

There is nothing like having some quirt time after the kids have gone to bed, watching TV

And making sugar roses and peonies.

I was alright till it came to stacking the cakes. I was not sure how many dowels I needed or whether the dowels I used were enough. Anyway managed to stack the cakes, but the next day, I noticed the top tier was leaning over. Complete nightmare. I managed to shock it, and then it came time to deliver the cake to the venue. It was like if I was carrying a new born baby. My heart did not stop beating till the cake was safely at on the cake stand in the event.

Well the cake held up and the celebrant loved the cake. I kept thinking why was I so worried.

But that is the life of a baker. It is our craft and we feel a personal connection for every cake we make.

Here is a pic of the cake and I was paid N100,000 for the cake. So I bought a new mixer with the proceeds. Not bad at all!

 

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So how much do you think you would have charged for this Cake.

If you said anything less than N50,000, then you need to read this Pricing formula desperately.

Here is how you should price your Cakes.

It is a simple formula;

 (Labour + Ingredients Costs + Sundry Costs + Utility Costs) x Profit = Total Cake Price

Step 1: Labour/ designer fee

Step 1 is labour, often the undercharged part of the cake pricing formula. When you know you are being paid something good then you making a cake becomes more enjoyable. But if you aren’t getting any good money,then it can be like a chore.
You do not want to work for nothing

To help you gain a control on the labour aspect, make a note of what you honestly want your hourly rate to be. Then increase it by 20%. This will be your hourly rate. Next start to monitor how long each type of cake takes to create. Record everything, from the initial enquiry, to the mixing, baking, cooling, cleaning, decorating, shopping, delivery, stacking, etc.

Step 2: Cost of Ingredients

I know this can be quite time consuming part. It is important to know the
price of each cake so make sure you calculate every batch. And remember to cost out every single recipe and recipe variation you work with.

Step 3: Sundry Costs or Extra Costs

Similar to step 3 this is fairly simple to cost, and again. Sundry costs, are things like cake boards, boxes, ribbons, dowels, etc.

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Step 4: Utility Costs

I know calculating Utility costs are a little trickier to calculate as you have to look into your utility bills or think of an estimate or figure to cover your utility.

If you get bills and want to be very accurate. Find your gas, water and electric bill then
calculate the total yearly costs.

You can then calculate your daily or hourly costs.

Daily Costs = Yearly total divided by 365 days

Hourly Costs = Yearly total divided by 8760 hours in
a year

This is how you can calculate the utility costs  per day or per hour (whichever you prefer).

Step 5: Profit

If you want to grow your business this is the most important part.

So so far if you follow the process until this step you will be paying yourself a salary, covering your costs and not losing money. If you add this part this is where you will see your business grow. The profit will allow your business to grow without you sacrificing how much you will make.

The profit is money that you can invest back into your business. So that you can afford that shop you want, buy new cake equipment, create a website, buy flyers, generally market your business, and outsource your bookkeeping, admin, etc.

Do not overlook this step. How much profit you add to your cake pricing formula is your choice. But aim for at least somewhere between 30% – 60%.

 

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Step 6: The Total Price

The final step is calculating all the steps.

(Labour/designer fee+ Cost of Ingredients + Sundry Costs + Utility
Costs) x Profit = Total Cake Price

For example,

Bose of Bose Cakes and Bakes has an order for  a 10 inch fondant vanilla birthday cake with small piping  and a few fondant roses on an iced cake board in a box.

Let get calculating:

Labour/your designer fee – N1,000 x 5 hours = N5000

Ingredients Costs = N2000

Sundry Costs = N600

Utility Costs = N450

Profit x 30%

The Formula (N5000+ N2000+ N600+ N450) x 30% = N10,465
Therefore the total price of Bose’s cake to the customer is N10,465

So this is the pricing formula  you can use to price your cakes and you can tweak it how ever you want. So no more undercharging for your cakes, you are a professional and should be paid as such.


 

me 6Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

If You Are Still Getting The Same Results, Why Don’t You Make A Change?

Inspite of my busy schedule I try to read at least 2 new books in a month. I started this when i heard that millionaires read at least 30 books in a year. Usually I like to read historical romance’s but since i have started by business journey i only read business or self-help books that will help me improve my business and teach me how to manage my money.

I promised myself that once I hit my income goal, I will treat myself to a holiday and a trashy romance novel.

As you know I have launched my Pricing your cakes right to build a profitable cake Business Course. I put my heart and soul in this course and in the launch. I got a lot of interest for it, but was disappointed in responses when it came to payment.

It is just perplexing to me that here is a solution to most bakers problems and yet they are not taking action.

Anyway, this past week I have been reading ‘Secrets of the Millionaire Mind’ by T. Harv Eker. While reading this book it brought about some home truths to me.

In this Course I have just launched I have prepared an answer to most bakers and cake business owners problems. And it just amazes me when people just pass it by. A few years ago if I had come across a course like this I would have jumped at the chance, no matter how much it costs.

We need to realize that ”if you continue to keep on what you’ve always done, you’ll keep getting what you’ve always got”- Jim Rohn

That is why I created this course, my goal is for you to learn more so that you can have a better business. When you learn something new, you have a new way of thinking, new actions, and therefore new results.

That is why it is very important that you continue to learn and grow.

An author once said ‘ the learners will inherit the earth while the learned will be beautifully equipped to live in a world that no longer exist’- Eric Hoffer

In essence this means that if you don’t create the habit of learning on a regular, you will be left behind.

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I cannot think of the numerous courses, seminars, books and training’s that I have done. I have spent thousands and thousands of Naira on them. It is not like if I have millions of naira in my account yet, or that I’m waiting till I’m a multimillionaire before I pay for these courses, But I never see it a cost, but rather as an investment. I know that even if I learn just one thing that will make my business improve, then I know it is worth it.

If you are in business and you are doing the same thing and not making money, then sorry to say you are doing something wrong and maybe it’s time you try something new.

We all know the definition of insanity which is doing the same thing over and over and expecting different results.

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In the Eker book he said ‘some people claim they can’t afford to get educated due to lack of time and money. On the other hand, rich people relate to a quote by Benjamin Franklin, which says that  ”if you think education is expensive, try ignorance’’.

And I find this very true. When I launch a course, I find it curious that it is usually the people who are struggling or are broke that say; ‘ I don’t have money or ‘ I don’t need this course or I don’t have the time. While  it is those who are actually making a headway in their business or those who are serious and determined to be a success that will find the money to pay for courses., because they know that if they can learn something that they can use to improve there business, it is all worth it in the long run.

Mr Eker also said ”if you don’t have time to do the things you want to do or need to do, you’re most probably a modern slave. And if you don’t have the money to learn how to be successful, you probably need it more than anyone’’.

If you come across an opportunity for someone to teach you how to run a profitable cake business and you are saying I don’t have money. What is going to be different in 1, 2 or 5 years down the line? I am going to tell you this for free, the answer is nothing. You’ll be saying the same thing at that time.

This is by no means a curse; you have got to know that for you to make money you have to LEARN how to make money for your business. You have to learn how to market, price, selling and brand your products right. You need to learn the skills, strategies and methods on how to have a money making cake business.

As cake business coach it is my passion, my goal to train and teach and show you how to have a profitable cake business, so you can move from whatever level you are on now to the ultimate level.

This past week I got booked to make a cake for over N100k. And it is not a wedding cake. As I said before, I have scaled down by business to concentrate on Cake business Owners Club so I tend to only get about 3-5 orders a month. This gives me time for my coaching business and courses and before I take an order it has to be worthwhile. I no more take orders for less than N30k unless it is for family or close friends.

How was I able to structure my business in this way. It was by investing my time, money and energy in learning how to do this.

Success is a learnable skill.  You can learn to succeed at anything. Your cake business can be a success.

So if you find someone or something that can teach you, you should grab such opportunity with both hands.

The more you learn, the more you earn… and you can take that to the bank’ – T. Eker

 


The Pricing your Cakes Right to Build A Money Making Cake Business Masterclass is still partially open. You can get more details and all the modules covered in the Courses here.

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me3Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

How To Have A Profitable Cake Business

This week on Cake Business Owners Club I showed you tips on how you can have a more profitable cake business.

In case you missed these tips during the week, here is a recap.

Enjoy!

We are in this business to make money. Yes we love baking, and yes sometimes it doesn’t feel like work. But in order to survive in this business you need to know how to make money.

f30Understand who are your customers

You need to know your customers and what they want. Once you have that information, you use all your marketing tactics to target that customer base. If you are selling wedding cakes, you target brides and young couples; you have no business advertising to mothers.

If you are providing cakes for the lower end of the market, then you should be advertising and showing up in secondary schools and universities.

Know how to Price your Cakes

 You need to know how to price your cakes. You need to know the cost of ingredients, your labour time and how much profit you want to make.

Don’t let customers bully you to accept a low price, you are a skilled professional and should be paid as such. It is your business so you should be in charge of how much you price your cakes.

If Pricing is an issue for you, register for my Pricing your Cakes Right Video Workshop Series.

 

ccYou need to find a product that sells well no matter what

You need to find a product in your business that sells well. This has to be something that does not take a lot of time and is easy to make and brings in good money into the business.

For me this was when I started making Swirl Cakes. They take around 2 hours to make including the baking and they are inexpensive to produce too.
The good thing with these types of cakes is that they are ideal for most occasions.
          
What should you do?

The good thing about this type of method for you as a business is that they are speedy to make, and they sell for a good price.

To give you an example, for a 12” fondant cake with a floral theme I would charge N21,000. It would take me around 6-8 hours to make from scratch and the profit on this cake would be approx N9,000

A box of 12 cupcakes takes under 2 hours from scratch to make, costs no more than N3,000 to produce and sells for N8,000  making you a profit of N4,000                                    

However, I can make 3 Nos. 6 inch Swirl Cakes in the time it takes me to make that one fondant cake, netting me around N4,000 profit per cake.
If you’re savvy with your planning you can do this quicker and for slightly less cost too making your profits even better.

When you are able to do this for your products, your client is happy as you are providing options for them selecting different versions of the cake they want in terms of price.

Know your business’s peak seasons

If you have been in business for a while, you should know what periods when you sell a lot of cakes. Do you sell more cakes during December which are the wedding and Christmas season? If this is so, you should plan for these by either getting more staff and making sure you have all the ingredients you need months before.

 

w12Don’t offer too much cake varieties

You providing every type of cakes in every size, style and flavour will not make you rich. If you try and do this, you will be tired always, need a lot of ingredients and tools.

What should you do?

Instead choose a small range of cakes you will offer, for example if you have just a range of 3-4 products, you will have something to suit most clients. This doesn’t have to be restrictive at all but it does help you plan your time better.

For example you can offer boxed Cupcakes for the lower end of your pricing, then celebration cakes (birthday, anniversary, etc) for midrange pricing and, finally wedding cakes for the higher pricing market.

Your cupcakes can start from about N3,000, which are ideal for a small gifts.
Your mid-range celebration cakes can be from N10,000 for a 6 inch cake, these are cakes for bigger celebrations like a party or significant birthday.

Then finally your custom or  bespoke range is where your prices aren’t fixed as they are based on the hours that the cake will take you and the skill you will need to devote to it.

By having these distinct tiers of product your client will never be scared off by your pricing and if they would like a custom but haven’t got the budget then you have your celebration range to suit their needs and budget.

a24Create Good Cakes

The best marketing you can do for your cake business is to make sure that your cakes are tasty and of high quality, that is, using quality ingredients.

Once your cakes are fabulous, you are certain that your customers will keep on returning and will spread the word.

They are a wealth of marketing strategies you can employ, which I regularly give you tips, but the starting point is that you have to have good cakes.

 

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Provide excellent customer service

You need your customers coming back, so you need to give them a good experience all the time.

Deliver on time; answer all their questions in a pleasant way.

If there is a problem, solve it in a timely and with a smile. Customers remember the little things, and this helps you in retaining and keeping your customers.


If you have not yet registered for my Pricing Course. It is closing in a few days. As I will be launching my Pricing Course next week.   Here is the link to register .


me3Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach.

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners.

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

The Door to your Business Success has been Unlocked[Gain Access Here]

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When I first started my cake business some years back, I had no business knowledge. I had no business plan, did not know what to charge for my cakes and was just going through the flow.

All I had was a passion for baking and a dream. I knew I wanted to sell cakes so I could give my children a good life.

So I started my business and it showed me pepper. Lol.

Not only did I have to learn a lot of things for myself, I was the baker, answering emails and inquiries, marketing manager, administrative manager, delivery person, shopper. I would work from early morning to late at night.

One of the reason I stated the business was that I wanted to spend more time with my children, but I was still working long hours and hardly seeing them even though we were in the same house.

I was working myself to the bone and I was still not making money. By the time I bought ingredients, groceries, petrol, paid my nanny’s salary, school provisions, my money was gone.

 I was like what was the use. I might as well as stayed being a lawyer and collected my salary at the end of the month instead of killing myself with flour and butter.

So why wasn’t I making money?

Reason- I was charging too small. I was so scared of pricing my cake at a high price. You could say I was the cheapcakelady. Customers used to bully me about quoting a lower price and I will succumb.

I was so not confident in pricing my cakes that I would ask the customers if the price was ok.

I remember doing a lovely buttercream big 12 inch lemon cake  ( I even used real lemons, the foreign ones, you can imagine how much they cost) with lots of intricate roses on it that took me like 2 days just to do all the roses and you know what they paid- N7,000.

I am so embarrassed about it now. I used my own money to fund their cake.

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(This is the cake)

 

 

 

 

 

 

 

But really I was my fault. I accepted that price from them.

I didn’t think I was good enough so that was why I charged very low for my cakes. I was not bold enough to voice my worth to my customers so they dictated my worth for me.

This should not be so.

I felt like quitting a lot of times. But I had no choice but to keep at it. I mean I had nowhere to go. What will I do for money?

A famous quote by Eleanor Roosevelt says that ‘No one can make you feel inferior without your consent’.

I was allowing others to direct things for me, because I was so afraid of losing the order.

Eventually I had to overcome this and be more confident in my pricing. I put up certain structures in place and made sure that a customer would not be able to price me down. I stopped being pressurized to give a price to the customer at the spot- I will get back to them.

I was able to quote and price confidently and with a purpose to secure the order.

And you know what; I hardly had a customer that didn’t place the order. Infact I think it was only 2 customers last year that did not get back to me.

So there is a way for you to quote any price to a customer and get that booking.

If you are like how I was, please don’t despair, I am developing a Course called How to price your Cakes for profit (I may change the name later) of how you never have to worry about pricing for your cake business. I will reveal the strategies that have worked for me that will get customers to pay the price you want for their Cakes.

By God’s grace the Course will be launched in April; so to be on the waiting list just click here and you will be informed first hand when it is ready.

You will no longer be known as the cheapcakelady but the ultimate cake queen.

So Register today and I will talk to you next week.

I would also love to hear about your pricing  woes, so just comment below

Could you do me a favour?

Could you just take some time out to  fill out this Survey.  It is about Pricing. I really want to know your challenges so i can address them in the Course.

It won’t take you long (just 4mins).

Just click here to fill the Survey

I really appreciate it

Take Care and Happy Caking.


me3

Rotimicakelady is your personal cake fairy. She is a cake business consultant and Coach. 

She runs the Cake Business Owners Club where she helps bakers through Online courses have super profitable and successful cake businesses.

She has a passion for helping women who have a passion for baking, transition from hobby cake makers to successful and profitable cake business owners. 

She also help cake business owners who have struggling in their cake business with strategies to enable them get more customers, so you make more money. Rotimicakelady is passionate about Cakes, business and making money.

How to price your Cakes for profit

Part guesswork, part experience, part number crunching – how ever you look at it, determining your cake price can be quite a difficult task.

Cake pricing or how much to charge for your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world today.

Unfortunately there are many factors to consider.

But I am going to break it down to just 7 factors that will help you price your cakes in a way that will make you and your customers happy.

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  1. LOCATION…LOCATION…LOCATION…

Where you live and where you bake will be the most important factor to consider when looking at pricing. If you live in Lekki, your pricing will be very different than if you live in Gbadagry.

Researching your local market is the best starting point to figure out pricing. Call other custom bakers and find out what they are charging. If they are successful and are charging a lot more than you were planning to charge, you need to raise your prices.

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  1. DO NOT UNDERCUT YOUR COMPETITORS

When you are starting a company, you are telling friends, family and clients that you believe you are good enough to open a business.

You may not feel like you are good enough, but pricing your cakes low hurts yourself because you will be working a lot of hours, and not make any money, and you can become known as the CHEAP cake lady.

Undercutting your competitors also hurts them and the cake industry in your area. Bringing prices down in your area can take business away from other companies and cause them to loose income, which can have many unwanted consequences.

Lower prices at the beginning can also make it very hard to raise prices once you have a strong customer base.

They will not want to pay the higher prices and will find the next new decorator to take your place. You want to attract loyal customers that see the quality of work you do and are willing to pay for it.

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  1. KNOW YOUR COSTS

This is a big one! You have to figure out your costs. You will need to calculate what you actually spent or will spend on making a cake.

Here is a list to consider as you calculate your costs

  • Overhead: rent, utilities, business cards, posters, office supplies, computer
  • Bakery equipment and supplies: mixer, oven, tables, cooling racks, pans, bowls, food coloring, luster dusts, fondant, tools, boxes, cake stands, cake boards, dowels
  • Ingredients: flour, sugar, butter, eggs, baking powder, chocolate, vanilla and other specialty ingredients
  • Delivery: petrol, wear and tear on your car, your time
  • Time: You need to make sure you get compensated for your time. Set an hourly rate for yourself and charge accordingly.

 

b3

  1. DO NOT COMPETE WITH SUPERMARKET &FAST FOOD STORE PRICES

When pricing a cake, never try to compete with them. Those cakes were flash-frozen months ago and decorated as fast as possible with buckets of premade icing.

You need to target the customers that are loyal and will come back for great tasting, quality cakes. If you want to know if your prices are too low, compare your prices with the supermarket. If you are close, raise your prices.

b2

  1. IT’S JUST A CAKE…NO IT’S NOT!

This is something you may hear from customers, or you may have even said it yourself. When a couple gets married/ there is always a picture of the bride and groom cutting the wedding cake. When people go to a wedding, what do they talk about? The dress and the wedding cake!

A wedding cake or a birthday cake is the centerpiece of that event.

Custom cakes are not just cakes. They are works of art that are central to the celebration.

Also, from the business aspect, your cakes are not just a cake you throw in the oven and hope it comes out right. Your cakes are tried and true recipes, icing, cake boards, dowels, fondant, decorating tools, days of work preparing decorations, planning, sketching, designing, and working with the client, then you deliver the cake and make sure it is perfect before walking away.

 

d12

  1. DO I PRICE BY THE SERVING (by the number of people the cake can serve) OR BY THE CAKE?

Once you have run your numbers and you know the costs involved, this is usually the next question.

They want to be able to compare prices and feel that they have a basic idea of what they can expect as far as pricing is concerned.

Here are 2 things to consider when setting your prices:

d9

Have a Minimum Price Point

Make it very apparent that your cakes start at a certain price point, such as, “Fondant cakes start at N100.00 per serving” or at N4,000 or “Wedding cakes start at N65,000,” then add that the prices go up depending on the design and size.

This can save you and your customer time. They will walk away if they know the minimum price is too high. You don’t want to spend time emailing and meeting with a customer only to find out they were expecting a three-tier wedding cake for N20,000.

You may have customers that tell you your prices are just too high, but do not lower your prices! You wouldn’t go to a supermarket and tell them their prices are just too high and ask them to give you a discount.

You should not try to make every person that contacts you happy. Stick to your pricing and if they choose to go somewhere else, they may not be the right kind of customer for you.

b30

Pricing specialty cakes

Specialty cakes and carved cakes require a lot more time for designing, structuring and decorating. This is a great time to price by the design.

Be realistic about the time required and price it accordingly. Just because a customer only wants to serve 10 people does not mean it will take you less time than a cake to serve 30 people.

Be honest with your customers, tell them these cakes take much longer than other cakes, and are priced based on the design not on the number of servings.

 

d8

  1. YOUR TIME IS WORTH MONEY

Make sure you give yourself credit and include the hours you worked on your cakes. Your prices may seem high to you, but if your research shows that your market will sustain your prices, go for it.

Your time is valuable, so set an hourly rate and stick with it. You have a great talent and should not be making less than minimum wage because you are building your portfolio or because you are just starting out.

Before i go let me introduce you to this awesome E-Course.

                           n5

Are you ready to finally start making serious money in your cake business, so that you can get more orders

                                         THEN REGISTER HERE

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