Today, I will be talking about pricing in Baking Business.
I have discovered that pricing is one of the major problems of Bakers in Nigeria. And this is regarded as a problem that can have a great impact on any business if not well taken care of.
Some years ago, when I started my Baking Business, I did not have any experience in dealing with Business, All I had was a passion for baking and the little baking knowledge I gained from the training.
When I started, it was not an easy experience. I struggled, I went through “HELL” this is because I handle virtually everything on my own. I deal with the Customer Relaionship Asspect, I handle the Baking Process, I handle the Delivery, the administrative aspect and all.
But one of the things that gave me the major problem was PRICING.
Whenever I get a baking order, it is usually a very serious problem to mention the price to
My fear was based on two things…
- I don’t want to Overprice so that I won’t lose the client
- I don’t want to undercharge so that I won’t run at lost
You see, one of the major problems of Bakers today is inadequate pricing system. I guess this problem is rampant because cakes does not have a categorical specification. In Baking Business, in as much as you can categorize some cakes according to their Inches, they may have different designs and decorative creativity which may take different time and resources.
This is the problem of most bakers in today’s world. When it comes to pricing of some certain cakes they have not done before, they get confused. And at the end of the day, they end up charging the client too low or too high.
In as much as you do not want to charge too high so that your customer will not run away, also, Charging too low may affect your business in many ways… A business with no or seriously low Profit dies slowly.
So, Let’s quickly talk about how to Charge accurately for your Baking Business without running at lost and without loosing
One of the things to consider when you first get an order, most especially for a type of cake you have not done before is to be Calm.
When a client call you for a cake order, allow her to mention what he/she want. Don’t jump.
Take your time to understand his/her need and request to get back to her.
Tell her to give you 1hour or two hours to get the price.
If you are good and you are sure of your service, you don’t need to be scared on this, even the client understand that you need to take your time.
Although, some of them want to rush you so that you’ll give a price that favours them. They know If you don’t take your time to calculate the price well, you will end up giving a low amount.
Infact, some of them will even treaten you with an alterntive “ I have a church member that Bakes fine, but I don’t want to take the opportunity away from you”
This is a mere treath… Like I said earlier, take your time to get your price right.
The only thing is that if you are not yet sure of yourself and your capability, the Fear will be there.
This is why you need good training that will make you a professional and Upgrade your Baking Skill like the Baking and Decorating Mastermind Training Pack that I have been telling you for a while.
Anyway, If you have gotten the training, all you need to do is to watch a training video on any area you are not good at. Follow the step by step procedures to make and decorate any type of cake either with Buttercream, Royal Icing or Fondant and get an amazing result that your client any anyone else will fall in love with. The Training is that Powerful.
Now, During the course of your calculation, you need to consider the following things to get the accurate price for your Cake.
- Work out the cost of Ingredients, Supplies and Utilities
Firstly, You need to work out cost of everything it will take you to get this type of cake done. Get the accurate price for the ingredient, supplies, Electricity or Gass, and If you are the one to deliver the cake, work out the delivery cost also.
2. Research Your Competitor:
In most cases, you need to research your competitor to know how much they charge for this type of cake. Once you know the price of about two or three of them, keep it aside and continue your working.
3. Decide your Per Hour Price.
In your baking Business, you should determine how much you want to pay yourself per hour. Decide if you want to pay yourself N500 per hour or N2,500 per hour.
You need to be careful while doing this, your per hour payment may be determined by the size of your business, how often you do get an order and how professional you are.
Your Per-Hour Price keep changing as you keep upgrading yourself. So, Do not joke with personal Development.
4. Work Out your Timing and Stress
One of the problems most bakers have is that they fail to realize that their time and stress are one of the determinants of their cake price.
For the first time of baking any type of cake, you can guess your timing and use it for the pricing. But while Baking this cake, you should record your timing this wll help you in subsequent pricing of such cake.
5. Work Out Your Monthly Cost and Earning
Write down how much you want to earn from your cake business each month or in a year. Then start incorporating that figure into your cake prices. For instance, if you want to earn N200,000 this month, you just have to sell 10 N20,000 cakes. ( This is an example)
Incorporate Everything Together And you’ll Have the Price of Any Cake.
Take the timings it takes to make this cake from start to finish (include every single minute) then multiply this with your hourly rate.
Calculate the cost of the ingredients, supplies and utilities. Add this number to the number above.
Then work out your profit percentage.
Add the profit percentage to your ingredients, supplies, utilities and labour total.
You now have the price for this cake.
Do this for each type of cake you create… The only thing is that this system may take you years to get each type of cake and their accurate pricing.
But don’t worry, I have a Price list Cheat Sheet for you.
IF YOU GET Baking and Decorating MasterMind Training Pack Today,
I will be Giving you my Cake Pricing CHEAT SHEET as a BONUS.
This Cheat Sheet contains ALL list of Different Types of cake and the accurate price you can make them that will benefit your business and be good for your customers.
This Cheat Sheet is working for most Bakers from
It is like a Ready-Made Pricing System for you
But, this Bonus is Only Available Today.
Again, you may not be able to Practice this method if you are not sure of how professional you are.
In Baking business, you do not need to Beg customers to get orders, one thing you need to work on is self-development.
In 2012, I thought I was good
This makes me lose my clients to others who are good in the area I always reject. And When I realize this, I begin to work on Self Development and within 2 months, I am telling you…I was a better baker.
If you do not Develop your Baking Skill, Ability and Creativity, some lions are out there waiting for your customers and this is why you must not give your customers any chance to slip away.
This is one of the things I have been telling you about the Baking and Decorating Mastermind.This training have everything required to move you from a Beginner or Intermediate Baker to become a Professional in Baking.
After you go through this training, you will be able to charge confidently without fear or low self-esteem.
Imagine myself and 4 other professional bakers training you on everything you need to know in Baking and Decoration? Not only in a Book but also in live VIDEOS where we practicalize the entire process.
Your customers will begin to see you as the best baker to do their Job within and outside your neighborhood.
So, If you have not gotten the training,
And Once you get it TODAY, My Cake Pricing Cheat Sheet will be Given to you as a Free Bonus. This is Only for today. You may not get the Cheat Sheet again even If you order tomorrow.
So, Click the above Link to Order right-away If you will like to add the Cake Pricing Cheat Sheet as a Bonus.
I am Always Committed to your Baking Success.