How to Price Your Cakes | Free Professional Cake Tips | Paul Bradford Sugarcraft School how to make
How to Price Your Cakes | Free Professional Cake Tips | Paul Bradford Sugarcraft School
hi there i'm david price now run thebusiness side of things here not pope rockford sugarcraft schooltoday want to talk about pricing cakes subject to everyone is a difficulty withat some point in time and none more so than ourselves so whyshould you listen to me back in for me for started out we were a little lacking in confidencemy experience and it was easier just under chargewhich justified it was well would get my name out there however in
we very nearly went to a business simplybecause we weren't charging enough to make a profit we're winning awards very busy but just not profitable it'soften the case that business owners have to close their own businesses to see the office and even respond tothat all too often owners can retract intothe Nile instead of dealing with the difficult issues that was backin
which is a crazy time I said very pretty up to nice in debt that was until oneday with a renewed weakening we simplycouldn't afford to keep going we were lucky are expected friendoffered to give us some business at Franks I thought port to theNo predicate business I don't but just listen come up through a coupleminutes it was very clear they knew how to makeprofit probably the most difficult butrewarding over business likes leaving the meetingchillin battle brews big news if we didn't put prices up then with the bankrupt within a couplemonths it really was not course it was horrible we were given a formulafor pricing cakes exchanger business and a lace the betterand I'm going to share that with you know using the formula and their particularcase meant that we had to put prices up by
to forty percent not miss Katie so I suggested that you put your pricesup by thirty five to forty percent what would you say well guess what we said exactly the same thing nobodywill ever paid out for a cake however we had no choice so don't leaveuntil you're in that position an ADB how do people want paid up have you tried the calculation was thatif we lost to percent for customers and would still be better off because wewouldn't have to be if the ingredients to make those extra cakes the dollars hewas the hostel there in percent forcustomers but within six months we're exiting the number of customers the same period the previous year wevery quickly started turning a profit using the formula starting to grow thebusiness the point with
let's and brought in over a milliontimes pricing was just one of many lessons will and will not be patrol shared within a pro section so hear you asking what's the formula toget going to five crucial questions that you need to answer to number onewhat can't we need to and every week not shitty consolidator p you can easilyspot left for what you want 'em but you need a number in there numbertwo how many hours can you give to actuallytake eating cakes every week I still be king admin taking orders justsimply the decorating number three what's the average time ittakes you today create a wedding cake and cupcakereports the average price you charge them whatcha say that now the trading cake isa three-tier
round with some decoration and a novelty cakewhat should I say inch clear character let's just see Mickey Mouse thecopyright that's important part here but that'snothing less than the procession number four for the cost ingredients tomake your average wedding cake and novelty cake as a percentage of theprice you charge and family number five poor you pick onein costs you really need to know this number sure ain't ish insurance out Christie advertising except rap if you don't surego we know Mark II because that will work hope yourbeekeeping figures it's very important you know that's okay so let's put some numbers togethernumber one let's say that you need two and fivehundred dollars every week number two you for Tony can dedicatetwenty hours a week Dec cakes number three your average rating: que teacher aroundseven hours today create any charge five hundred dollars andlet's see a novelty cake takes three hours which are two hundredfifty dollars number four cost ingredients to make those kicks astep a number five let's say that your weeklyrunning costs for three hundred dollars
week as to waiting into novelty cakes which will fill yourtwenty hours supporting these numbers together to wedding cakes to novelty cakes willbring in sales one thousand three hundred dollars knots to eating cakes five hundred dollarsunder to novelty cakes a hundred and fifty dollars cost ingredients will be three hundredninety dollars trust after percent of the
dollars that you have received in salesand running costs are three hundred dollars which are now going to be fixed here P as many town is five hundred dollars to taking the silga one thousand threehundred dollars minus the cost ingredients running costs and your p all that will give you a netprofit a hundred and ten dollars but don't rushoften spend it Asus can be used to offset against aquieter weeks if you can't make profit Houston despondent are you want to make moreprofit even a few options you can get quicker find more hours in aweek you can but you shouldn't be giving Kos you can reduce your overhead cost butthe simply charge more Notre final quick tipin pricing always give your customers to replaceoptions if the let's say that the hundred dollar /option which will just be a basic the same thengo for Company two dollar /option which me moredetail unusually price point you might expectthe customer to go for always kept the top option as well don't be skeered go to here let's saytwo hundred and fifty dollars plus get really excited when explaining thedesign I just remember that not everyone makes a decision on the cake peacefulpranks its notional by to hold you sell the emotional up howwonderful is keep me them feel at the big event there's a good chancewe'll take this option the key thing here is to make sure theask which option you prefer an ass withconfidence this way they're very likely to choose one of the options round just say no which was not anoption if government never ask a question where no could bean easy answer never never give these a cop I'm wouldyou like to go in think about it you should create a pricing grids which can present to the customer shouldbe in quality paper are back at your portfolio which clearly setso your pricing structure we base our prices in the cake size 68
x the bundy created for the main have timeto take me the cake so the template we use is available shedid then we'll take a started or I one final thing friends and family work except the yourfriends and family are and make a small list for everyone elsetreatments customers no me trates for friends of friends andthe smell test they should be fully paying customers ifI were you let's not spend on attending favorsbecause the more you too the more than is expected of you hopethis gives you some insects in pricing was plenty more in this on the wholerange a purse the subjects and a protection but from no his travelto the next place which is home to find customers thanks for watching and look forward toseeing you next time