Know Your Business Goals and Numbers
Pricing remains the single most contentious issue for cake decorators going Pro.
We know it can be daunting when you start out and often you’ll ask others “what do you think I should charge?” then show them a cake and await their guidance, which will have a huge influence on what you eventually quote or charge.
Before we start making any sense of what you should be charging first of all you need to know:
- What’s your business dream?
- What goals and timelines have you put in place to achieve that dream?
- Do know your breakeven point?
- What income do you need to take from the business to live?
- What are your ingredient costs?
- What are your overheads i.e. insurance, electricity etc?
Jane's pricing journey
In this lesson we follow Jane’s pricing journey who runs a shop with staff and has significant overheads.
Sarah's pricing journey
Let’s meet Sarah who runs her business from home. She’s ambitious and wants to grow her business to eventually open a shop, but wants to gain a large customer base before doing so. She’s needing a salary of £18k, but would like more.
Maggie's pricing journey
In our final example we have Maggie, who’s retired and looking for something to do in between looking after the grandchildren. Her goal is to provide lovely cakes, feel appreciated and make a little money.
In these lessons you have seen how three designers quoting for the same cake arrive at different prices. You can see the differences quite clearly and you need to work out which of these positions are most aligned to your circumstances. Now we look at a pricing table and David explain the rule of 3’s which will make your pricing journey a lot simpler!
Pricing your cakes has to be one of the trickiest parts of being a professional cake designer. I'm sure we've all googled it, asked friends and family and came to the conclusion that you would just charge a rough number hoping people would pay that amount.
Wouldn't it be great if there was a formula? Wouldn't it be great if someone could just spell it out in plain English and tell you what to do at the same time as explaining every step behind it?
Well, look no further! David Brice (Director of PBSS) is here to take you through every step of pricing your cakes no matter your situation or circumstances. Whether you own a shop with significant overheads or are working from your own home and just want a little extra cash this pro tutorial is for you. It's all about knowing your numbers and believing in your product.
Covered in this course:
- They key questions that you need to answer
- The numbers you need to know
- The math behind the numbers
- The rule of 3's
All this and lots more!