6 Steps to Pricing your Cakes with Confidence
The most popular topic in Home Baking Businesses is PRICING. Hands down! It’s also the one topic people repeatedly ask me to write about.
Even though most posts on cake pricing totally answer all the practical questions, pricing home baked goods remains an issue.
This post will clear up Cake 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. The #1 Reason Home Bakers Feel Awkward with Cake Pricing
If you consider the typical price of a cake, it’s not exactly obscene compared to all the other things people buy for enjoyment.
Cakes are SUPER labour intensive, yet we tend to feel awkward charging what they 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 also kind of who we are – what 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!” OR “If I could only make x amount of sales per month, THEN I would know that I have what it takes!”
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/Creative, won’t be enough to satisfy you.
2. So, if an outward achievement or qualification doesn’t make us “enough”, what does?
HOW do we become CONFIDENT Bakers that sincerely charge what our bakes are worth?
How do we get to a place where we have confidence in our value and what we bring to the table?
Imagine feeling CONFIDENT instead of awkward when you price your bakes and charge clients?
All of these desires above are 100% POSSIBLE.
It’s the journey I’ve been on these last 5 years in my own Home Bakery! And, my friend, it’s possible for you too.
Here’s the secret:
The question is not whether you are enough – because you are enough (that’s a given). The REAL question is: Who do you believe you are?
What you DO is what you BELIEVE.
Forget what you “know” about yourself because all that matters is what you BELIEVE about yourself.
Where you are right now is a DIRECT RESULT of the beliefs you’ve held till now.
So, who do you truly BELIEVE you are?
And is that person valuable?
What makes that person valuable?
It’s not what they look like or who their parents were or what qualifications they have or what job they do…
It’s got nothing to do with what’s on the outside. It has EVERYTHING to do with what’s on the inside. Inside YOU.
So dear friend, who are you?
I’m asking you thins because the price tabs you put on your work will always reflect who you believe you are.
Once you’ve settled it in your heart that YOU ARE VALUABLE, it will become so much easier to acknowledge that your baked goods are valuable too!
Let’s Cover the Cake Pricing ESSENTIALS…
3. 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 is important to realize that you are 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 will also get the cake FRESH – not 1 week old as in the grocery store and large, mainstream bakeries.
Small batch, quality home baking is of HIGH VALUE. You offer them the sentimental, high quality benefits of a homemade cake without them needing to spend ANY time on it.
Home Baking has an incredibly high QUALITY, NOVELTY and CONVENIENCE value. That is worth a lot.
4. 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 noting 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.
BONUS TIP: 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 HELPING US.
Charging DECENT prices for your bakes (charging what they are worth) will enable you TO KEEP 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 I’d also like to talk about pricing your bakes for family.
Baking for family and friends is a tough one; because we love them and feel bad 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 Johnston 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 will 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 will 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 Cake Pricing and now I invite you to sign up to my blog and get access to my FREE Pricing Calculator!
>> If you’ve already signed up in the past, check your email (spam & promo folders too!) for the Resource Library’s link and password 😉
I trust that this post has FINALLY given you everything you needed to settle the issue of Cake Pricing in your Home Bakery Business – forever!
If you have any further questions, share them with me in the comments below 😉