Future Pricing...
I have a question abut pricing thats been bugging me for a while and this is the perfect place to get answers.
I get many of my wedding cake and/or cupcake orders a year or more in advance, and once the initial chatting and meeting is over I confirm the order and I then insist on a minimum 50% deposit to reserve the date for a wedding order.
My terms then state that the balance of the payment, final confirmation of colour/ quantities/ flavours and so on is due 2 weeks before the wedding date.
I don’t know about the rest of the world, but in South Africa the price of my ingredients goes up at least twice a year, and significantly so with some things.
Cream cheese for example went from around R30/250g brick to R45/250g brick in the last year. Thats a 50% jump in price, and I certainly can’t price my goods accordingly!
Can I include in my terms and conditions that the balance of payment on a wedding order will include a 10% increase to counter inflation when an order is placed more than 6 months in advance?
How do you all handle payments and price changes?
Heaven in paper cups!
4 Replies
Hello.
I try to project pricing as far as I can, ie; if it’s for next year it’s this year’s prices with an additional 10%. This would just be your estimated price, to be changed/ confirmed at a later stage.
Work out your average wedding cake price (the price of your most popular sized cake) then add 10% (for next year) and work out 50% of that.
You can then use this amount as your ‘set deposit’
Explain to your client that supply costs can not be projected so far in advance and that you will work out an accurate price for them 3/4 months before their wedding date. Obviously their set deposit will then be included in what they will need to pay.
I hope you understand what I mean? :)
Good luck!
Xxx
Chef Sam, BLOG: http://chefsamcakes.blogspot.com/, FACEBOOK: https://www.facebook.com/chefsamcakes
Absolutely! Thanks!
Heaven in paper cups!
I do hear you… butter where I live when from $2.00 a box (16 ounces) to $2.99 a box in just a few months. Food prices are skyrocketing everywhere and it does worry me, personally I think moreso. However, I am now subtly raising prices to reflex my time and effort, and not just cover the cost of ingredients. Ingredients are working out to be a small fraction of the prices I am charging lately, and every 4 months I have been raising my prices per serving a little bit at a time. It’s really begun to change things for me as far as caking goes by almost eliminating the bottom rung of customers who would be better suited by ordering a cake from walmart because they “are only looking for a good price” and not the quality and skill that I offer. I’ve even thought about cutting out sheet cakes because there are just so many places in town that can do that, much more cost effectively than I, too.
Leslie Bruckman, Owner of Nom Nom Sweeties
I so hear you NomNomSweeties…
I am certainly not the most affordable in my area, largely because I refuse to sell my work for peanuts, and I have several regular customers which is a bonus.
Heaven in paper cups!
