1. How to price your cakes and floral arrangements
Getting your pricing correct is often the difference between success and failure.
Follow David and create a systematic approach to your pricing and also ensure that you are pricing to make a profit.
This lesson will challenge a number of issues so be prepared to let go of any systems or pricing approaches that are no longer fit for purpose as you plan to achieve your key business objective and goals.
Key Numbers you need to know:
KEY FACTORS
- DO NOT base your pricing on your competitor, base it on a roll model
- DO NOT base your pricing on what you THINK the customer will pay
- DO NOT fall into the limiting belief that Customers won’t pay these prices!!!
- Design your cake portfolio with profit in mind
- We will be working on Branding and the Marketing Plan to achieve those prices
- Charge with Confidence
Wedding Price Guide explanation: DOWNLOAD
The price is made up from the size of tier (4″,6″,8″ etc) and the time taken to complete that tier, which is the Band rating. The Band rating will be determined by how much time or extra cost you decide that tier will take. In our example Band C are the quickest and easiest cakes to make, then B, then A being the most time consuming. You need to identify your prices based on your business and the numbers discussed in the earlier spreadsheets. Note that the price was the same regardless of the type of cake or filling chosen with our wedding cakes.
Novelty Price Guide explanation: DOWNLOAD
The row showing 1.5, 2 etc relates to the number of hours estimated to decorate the cake. The designer should add the price against the size of cake from the columns above with the price given below the estimated time to get the total price for the cake. We had a separate fruit cake and sponge cake guide for Novelty cakes due to smaller profit margins.
Pricing Summary
How to make more Profit:
- Reduce costs
- Improve speed
- Create faster designs
- Increase your prices
Extra Learning:
Nicholas Lodge – Pricing Sugar Flowers
