"The Sweetest Message Board on the Web" aka THE PINK PALACE! | Dolores' Private website | Online Catalog | Archives | Home

Posted by DeniseNH on June 15, 2007 at 07:58:43:

In Reply to: ? about Raising Prices on wedding cakes posted by MDBaker on June 15, 2007 at 00:29:02:

I too have been contemplating a raise in prices for two reasons. Grocery and gas prices have gone up quite a bit. A two pound bag of confec. sug at Wal*Mart went up 25 cents, as have eggs and sugar prices and lets not even think about gas. Then I guage my clients on how many kitchen cakes are ordered and if it's too many then I know that I'm drawing in the lower (cost cutting) end of the wedding industry and I would like to attract mid to upper. So raising my prices would tend to keep away the mini wedding cake customers with 16 kitchen cakes out back and would help compensate for rising grocery store prices. Then the government allows .485 cents per mile as a tax writeoff so I almost double that to $1.00 a mile (both ways) and no one has complained. I know my competition (a local bakery) charges double that for delivery because they factor in loss of production time at the store. Hope this helps. Going up to $3.75 for wedding cakes in January.

: I have been meaning to raise my price per serving after meeting with a business growth management advisor who said that an increase of up to 10% is an amount people will take in stride. But I have been very busy and hadn't had a chance to sit down and actually do it. I'm at $3.50 per serving now and was contemplating going to $3.75. We'll I was at the computer last night doing some research and found that the only bakery in town has raised their price from $2.75 to $3.50 to match my current price. He raised 75 cents! We'll they don't do customized wedding cake designs (all their photos on their website come from published books) and I know they don't offer the same level of customer service that I do (brides have informed me of this). So now I'm pondering a raise to $3.85 which would be the full 10%. In your opinion/experience do people accept a more rounded number like $3.75 or $4.00 more willingly? Not sure that I would go up to $4.00 but maybe $3.95 to keep it under $4.00 but that might be too much of an increase for people to handle. I know my pricing structure will vary from what you are able to get in your region but I'm looking for some general pricing advice as to rounding up or down to quarters of a dollar. Thanks in advance.

Follow Ups:

• about delivery fees - Barbara R (TX) 14:10:41 06/16/07 (10)
  • Re: about delivery fees - leah s 13:12:38 06/17/07 (0)
  • Re: about delivery fees - Carolyn (MO) 11:54:08 06/17/07 (8)
    • Re: about delivery fees - Barbara R (TX) 00:01:29 06/18/07 (7)
      • Re: about delivery fees - Carolyn (MO) 08:05:08 06/18/07 (6)
        • Re: about delivery fees - Barbara R (TX) 09:05:07 06/18/07 (5)
          • Re: about delivery fees - Carolyn (MO) 14:37:56 06/18/07 (4)
            • Re: about delivery fees - Julie (MI) 12:50:03 11/12/07 (1)
              • Re: about delivery fees - Carolyn (MO) 21:15:34 11/12/07 (0)

Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:
: I too have been contemplating a raise in prices for two reasons.  Grocery and gas prices have gone up quite a bit.  A two pound bag of confec. sug at Wal*Mart went up 25 cents, as have eggs and sugar prices and lets not even think about gas.  Then I guage my clients on how many kitchen cakes are ordered and if it's too many then I know that I'm drawing in the lower (cost cutting) end of the wedding industry and I would like to attract mid to upper.  So raising my prices would tend to keep away the mini wedding cake customers with 16 kitchen cakes out back and would help compensate for rising grocery store prices.  Then the government allows .485 cents per mile as a tax writeoff so I almost double that to $1.00 a mile (both ways) and no one has complained.  I know my competition (a local bakery) charges double that for delivery because they factor in loss of production time at the store.  Hope this helps.  Going up to $3.75 for wedding cakes in January.

  : I have been meaning to raise my price per serving after meeting with a business growth management advisor who said that an increase of up to 10% is an amount people will take in stride. But I have been very busy and hadn't had a chance to sit down and actually do it. I'm at $3.50 per serving now and was contemplating going to $3.75. We'll I was at the computer last night doing some research and found that the only bakery in town has raised their price from $2.75 to $3.50 to match my current price. He raised 75 cents! We'll they don't do customized wedding cake designs (all their photos on their website come from published books) and I know they don't offer the same level of customer service that I do (brides have informed me of this). So now I'm pondering a raise to $3.85 which would be the full 10%. In your opinion/experience do people accept a more rounded number like $3.75 or $4.00 more willingly? Not sure that I would go up to $4.00 but maybe $3.95 to keep it under $4.00 but that might be too much of an increase for people to handle. I know my pricing structure will vary from what you are able to get in your region but I'm looking for some general pricing advice as to rounding up or down to quarters of a dollar. Thanks in advance.



Optional Link URL : 
Link Title        : 
Optional Image URL: