cakes

Why 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 are passionate about baking. 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

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.

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.

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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.

 

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.

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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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.

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

 

I am still taking cakers for my 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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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.