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Re: Pricing

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Posted by anna n on July 09, 2008 at 09:24:37:

In Reply to: Pricing posted by Deanna on July 08, 2008 at 15:52:32:

I was asked to do the same thing by a restaurant in my town, and I had to turn it down. Here's why. I felt like it would take all my time to keep the restaurant supplied and not leave me time for my primary business--wedding cakes. Also, the restaurant owner told me that my prices would have to be such that he could triple the price he paid for the desserts when he served them. I did some figuring, and I couldn't come up with a price that would compensate me for my time and ingredients and still allow him to charge what he needed to for the desserts. I don't think a small business can compete price-wise with places like Costco. Even though your products are probably better tasting, the cost you would have to charge wouldn't compete. I don't blame the restaurant owners for having to charge what they do--they have to make a profit to stay in business, too. A restaurant is usually better off by doing their desserts in-house to cut out the middle man (us), and I can't fault them for that. You will probably get other opinions on this, but this has been my experience.

: Hey All,
I have a small cake and candy business in a small Missouri town of about 7000 people. I normally do decorated cakes but one of the small cafes in town is talking to me about possibly providing them with thier baked goods. Cakes, pies, cobblers etc... I am wondering what you would feel would be a fair price to charge them for pies, 2 and 3 layer round cakes and cobblers. They normally buy thier baked goods from costco and other big box stores. Would you normally figure out the cost then add a percentage to them? Just thougth I would ask the pros. I can determine my charge for a decorated cake but these would require far less in the way of decoration.
I know today they were selling "gourmet chocolate cake" from costco for 3.45 per slice and apple pie ala mode for 4.25 per slice. Any thoughts would be appreciated.

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Re: Pricing - DeniseNH 12:43:45 07/10/08 (0)

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: I was asked to do the same thing by a restaurant in my town, and I had to turn it down. Here's why. I felt like it would take all my time to keep the restaurant supplied and not leave me time for my primary business--wedding cakes. Also, the restaurant owner told me that my prices would have to be such that he could triple the price he paid for the desserts when he served them. I did some figuring, and I couldn't come up with a price that would compensate me for my time and ingredients and still allow him to charge what he needed to for the desserts. I don't think a small business can compete price-wise with places like Costco. Even though your products are probably better tasting, the cost you would have to charge wouldn't compete. I don't blame the restaurant owners for having to charge what they do--they have to make a profit to stay in business, too. A restaurant is usually better off by doing their desserts in-house to cut out the middle man (us), and I can't fault them for that. You will probably get other opinions on this, but this has been my experience.

: Hey All,
I have a small cake and candy business in a small Missouri town of about 7000 people. I normally do decorated cakes but one of the small cafes in town is talking to me about possibly providing them with thier baked goods. Cakes, pies, cobblers etc... I am wondering what you would feel would be a fair price to charge them for pies, 2 and 3 layer round cakes and cobblers. They normally buy thier baked goods from costco and other big box stores. Would you normally figure out the cost then add a percentage to them? Just thougth I would ask the pros. I can determine my charge for a decorated cake but these would require far less in the way of decoration.
I know today they were selling "gourmet chocolate cake" from costco for 3.45 per slice and apple pie ala mode for 4.25 per slice. Any thoughts would be appreciated.

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