6 Steps to Pricing your Home Baked Goods with Confidence
Pricing your home baking can be (and should be) simple.
But how do you know if you’re doing it right? How do you know if you’re undercharging or overcharging?
If you’ve been struggling to price your home baking, know right now that it’s not your fault at all and you’re so not the only home baker struggling with pricing!
Personally I also struggled with pricing in my home bakery for a few years, and this post is here to make pricing quick & simple for you.
I understand completely how you feel right now….
You bake your heart out and spend all day in the kitchen baking the most delicious goodies. You’re so proud of your creations you spent HOURS on!
And then your customers say “What?! I’m not paying THAT much! I’ll only take it if you give me a discount.” And you do it because you don’t want to lose their business!
You bake the most amazing, delicious treats. A family member excitedly tells you they’d love some of these goodies too!
But since you don’t really “officially” have a Home Bakery Business yet, you feel too guilty to charge them for your baking… And then you give it to them for free.
It’s been a few months of giving away bake after bake after bake and your bank account just can’t handle this much longer.
Resonate with these 2 scenarios?
Then you’re in the RIGHT PLACE my friend!
The most popular topic in the Home Baking Businesses world is PRICING. Hands down!
Even though most posts on home bakery pricing totally answer all the practical questions, pricing home baked goods remains an issue.
This post will clear up Cake (and all baked goods) Pricing for you once and for all!
Before I hand you the FREE Pricing Calculator, it’s ESSENTIAL to your success that we first uncover some of the deeper reasons why Home Bakers tend to struggle with Cake Pricing.
Let’s lay the foundation right so that you NEVER have to struggle or feel awkward when you’re pricing your cakes, sound good??
1. Understand WHY Home Bakers Feel Awkward & Guilty with Pricing
If you consider the typical prices of baked goods, they’re not exactly obscene compared to all the other things people buy for enjoyment…
Every day people spend thousands of dollars around the world on restaurant meals, watching movies, weekend getaways, etc.!
People easily and willingly PAY GOOD MONEY for products that make their lives better. Why should it be any different with homemade products – like home baking?
Home Baking is SUPER labour intensive, yet we feel too awkward & guilty to charge what our bakes are TRULY WORTH.
I am convinced that the reason why cake pricing remains an issue, is because we are confronted with adding a VALUE TAB to what we do… AND a value tab on what we feel WE are worth.
A lack of confidence is the REAL reason why we overwork ourselves, STRUGGLE WITH PRICING, end up bowing to every whim of demanding clients and get stuck baking things we don’t even enjoy making for cheaper prices!
There’s this constant analysis going on in our minds “If only I had 1000 likes on my Facebook page, THEN I would know that I’m good enough to charge full price for my bakes!”
And with Reality TV Shows about baking it’s the EXACT same story. All home bakers have these thoughts crossing their minds on a regular basis:
“If I win this competition, I will finally know that I’m good enough.” “If I win this competition, it will prove to my father that I’m talented enough to make a living from dessert making.”
Here’s the secret: “If you are not enough WITHOUT it, you will never be enough WITH it.”
The hard truth is that the “stamp of approval” you feel you need to classify you as a LEGIT Baker, won’t be enough to convince you that you’re “good enough”.
So, if an outward achievement or qualification doesn’t make us “enough”, what does?
HOW do we become CONFIDENT Bakers that confidently charge what our bakes are worth?
Here’s the secret:
The question is not whether you are “enough” or not – because you ARE and always have been enough (that’s a given).
You were meant to be YOU and you’re enough. You always have been.
But what I believe about you is irrelevant.
What YOU believe about your value is all that matters here.
So, who do you truly BELIEVE you are?
And is that person valuable?
What makes that person valuable?
The price tabs you put on your work will always reflect how valuable you believe you are.
I had to get to a point where I stopped looking to my clients for validation that I’m okay.
I had to fully embrace that MY value comes from the Lord Jesus Christ (for you it can be your own spiritual beliefs).
In the past I undercharged for my baking because I felt a need to OVER-please my clients so that the odds of them liking me are higher… I was deceived in thinking that the more clients liked & praised me, the more valuable I’d feel.
But if you’re not enough without that praise or pleasure of people, you’ll never be enough with it.
“The reason we ‘people please’ is not because we care about other people. It’s because we want to control what other people think of us.” – Courtney Chaal
When YOU stop looking to people for your validation and settle it in your heart that YOU ARE VALUABLE & ENOUGH, it becomes so much easier to acknowledge that your baked goods are valuable too!
Now let’s Cover the Home Baking Pricing ESSENTIALS…
2. The VALUE of Home Baked Goods
You may have believed until now that Home Baking is in some way “inferior” to that of mainstream retail Bakeries.
But you actually have it backwards!
It’s important to realize that you’re offering a VERY UNIQUE and VALUABLE service here. You are baking SPECIALLY for ONE client with all the LOVE and QUALITY they would get from their OWN MOTHER’S baking.
They’ll also get their baked goods FRESH – not 1 week old as in the grocery store and large, mainstream bakeries.
So, on every level, small batch home baking is of HIGHER VALUE than mass produced commercial baking.
You offer them the sentimental, high quality benefits of homemade, HAND MADE baked goods without them needing to spend ANY time or effort on it.
Home Baking has an incredibly high QUALITY, NOVELTY and CONVENIENCE value. That’s worth A LOT my friend.
3. Cheap Prices Attract Cheap Clients
If you’ve been charging too little for your baked goods, you’ve probably run into some pretty darn demanding, unrealistic, bartering sort of clients. Am I right?
Chances are, that’s what drove you to start looking for cake pricing answers! The type of clients you have are just becoming unbearable and you’re constantly second guessing yourself as a baker and business owner.
So here’s the deal. Cheap prices will attract budget clients who enjoy nothing more than saving money wherever they can.
They unfortunately are the type of clients who take advantage of you. They’ll get you baking things you hate, on short notice for less money.
The way you get ideal, committed clients with better character is by CHARGING MORE. This separates the cheapskates from the true cake appreciators.
4. Cheap prices “for the love”?
When I started my Home Bakery I kept all my bakes SUPER cheap because I wanted them to be affordable for everyone.
I was buying the best ingredients, investing hours of my time and barely turning ANY profit.
There are so many bakers on Instagram that say: “You should do it for love, not for money.”
But this is FLAWED LOGIC. Let me explain why.
Let’s look at doctors for example. They fill an amazing role in society and bless so many people with their gifts and talents. Keeping people alive is their heart’s desire.
Medicine is a SUPER demanding career and there’s no doubt that doctors choose to STAY in this career for love and not money… The convenience & excitement of money wears off pretty fast when you need to work 36 hour shifts – repeatedly.
Yet we GLADLY pay them generous sums of money SO THAT THEY CAN KEEP ON HELPING US.
Charging DECENT prices for your bakes (charging what they are worth) will enable you TO KEEP ON BAKING DELICIOUS BAKES FOR PEOPLE.
If they don’t pay you WELL, you’ll need to end your Home Bakery and get a desk job somewhere… It’s pretty hard to “love people with your baking” then, isn’t it??
On this point we also need to talk about pricing your bakes for close friends & family.
Baking for family and friends is a tough one; because we love them and feel guilty to accept and ask for payment.
But, here’s another perspective: Your friends and family love you and want you to succeed – that is why they are ordering from you.
I decided a while ago to have a standard discount for all my close friends and family. The discount is 10% off my direct client prices. To offer them a discount will already seem very generous and courteous to them.
If your friend sells you a car (for example) you will be ELATED if they give you a 10% discount, right?
Set up a fixed discount rule for friends & family that you are comfortable with (I recommend a 10% discount MAX), and stick to it no matter what.
Making a rule like this for yourself and your family/friends eliminates the need to make an awkward decision every time a family member or friend orders something.
5. Transition From a Freelancer to a BOSS
I recently watched a video by online entrepreneur Courtney Chaal on this topic. All home bakers start out as freelancers meaning that someone asks for a certain bake for a certain day and we proceed to make it for them.
They then start manipulating you by saying their budget is so tight this month because of this and that, so you end up giving them a discount…
The client calls the shots. They determine what we make, when we make it and they influence what they pay for it. This means that we base our business strategy and pricing by just REACTING to our clients.
You might still be running your Home Bakery this way and be thinking “well, what other way is there??”…
There is another way my friend and that is to become a BOSS and start running your business like a boss.
A boss decides what services and products they do and do not offer. They decide what the prices are. They call the shots and determine the course of their business.
A freelancer is just reacting to clients and their business will end up going wherever their clients end up taking them – which could be in circles or downward, and not forward.
There is a COLOSSAL difference between a freelancer and a boss!!
ALL Home Bakers do start out at freelancers, but if you desire success for your Baking Business, you’ll need to make the mindset shift into the boss world – sooner rather than later.
Your clients will no longer be deciding what you bake and when you bake it for. They will no longer be influencing your prices. YOU’ll now be the one deciding how your business is going to operate on every level – and I’m SO EXCITED FOR YOU!!
6. Download your FREE Pricing Calculator
You’ve successfully completed this training on Pricing your Home Baking and now I invite you to sign up to my blog and get access to my FREE Pricing Calculator!
It’s the BEST tool for any Home Bakery Business! You simply type in:
>> Your rate per hour of labour.
>> The time you spend on the bake from start to finish.
>> Your ingredient costs (include electricity costs, decoration costs, packaging costs, etc. as well here).
>> Your desired profit percentage from the bake.
And then it calculates the recommended selling price FOR you! Tada!
INSTRUCTIONS FOR USING THE PRICING CALCULATOR:
1. Sign up for the Free Resource Library to get the Free Pricing Calculator.
2. When you’ve signed up for the Library check your email (spam & promo folders too!) for the Resource Library’s link and password 😉
3. Make sure you actually DOWNLOAD the pricing calculator. Don’t just open it online – in which case you’ll be able to enter numbers, but it won’t calculate anything. In the Library, click the pink download button – this will open the calculator online. Then click the download button in the top right corner. Open the downloaded pricing calculator on your computer and start typing in your info.
4. To use the Pricing Calculator you need to at least have a PDF reader on your computer like Adobe Acrobat Reader – which is free to download. Click here to download it for free. Follow all the prompts and install it.
This Pricing Calculator ONLY works on computers, not cell phones.
Here’s a video to SHOW you how to use the Pricing Calculator step-by-step…
“What if I STILL feel too guilty to charge full price?”
It’s totally possible that you may read through this entire post and still feel too guilty to charge full price for your bakes. There’s no shame in that. I struggled with the same thing for YEARS!
NOW I HAVE SOME DEEPER QUESTIONS FOR YOU:
>> Do you feel unsure whether you’re charging too much or too little for your baking?
>> Are you often undercharging for your bakes or giving discounts & freebies because you feel too GUILTY to charge full price?
>> Do Home Bakery pricing & bookkeeping make you feel anxious and overwhelmed?
Then the “Confident Pricing & Profit Kit” is exactly what you need! The Confident Pricing & Profit Kit is a course that takes the stress out of Home Bakery Pricing & Bookkeeping with done-for-you templates and strategies.
I trust that this post has FINALLY given you everything you needed to settle the issues of Home Bakery Pricing & Bookkeeping!
If you have any further questions, share them with me in the comments below and I’ll get back to you as soon as I can! 😉