I know it can be a super scary thing to want to raise your prices in your cake business.
You know you deserve charge more. Yet, you’ve never done it and you are worried about upsetting your current clients and worried you won’t attract clients who will pay those prices.
I’ve totally been there. I used to charge $4.00 per slice. I was actually quite proud of myself for even just selling cakes.
And as I started to book more and more cake orders, I noticed I should charge more.
Yet, I was soo afraid people would judge me, say I’m charging too much, and walk away.
Now, I easily charge average $8-12 per slice.
I’ve even charged $18.00 per slice serving over 200 people.
If you want to raise your prices, here’s what to consider.
1. Why are you raising your prices?
It’s one thing to just say, “I’m raising my prices because I don’t charge enough.” But the question you need to ask is "Why."
Strange why I ask you why..right? But, you need to understand that this is business. What do your prices have to do with your business.
Exactly how much does it costs to make your cakes? How much are you making per hour after expenses AND profit? What is your hourly rate to make the cakes?
Understand that you need to know the direct correlation to what it costs to run your cake business and how much you are making.
Get clear on those exact numbers.
This is a real biz right? You gotta know this stuff.
You need to understand why you are raising your prices and what it will do to your business.
2. Are you the cake designer who charges premium prices now?
To be a cake designer who charges premium prices, you must BE that cake designer NOW.
That means with how you operate your business, how you market your business, how you think of yourself and your work, how you price your cakes, how you understand the business side of your cake business.
It’s internal work you must do.
I can charge $20 per slice with a cake min starting at $2000. But I won’t.
Because I’m not that cake designer who charges that much…yet.
I’m the cake designer who books $800+ orders, every single time.
To get the business you want you must BE the cake designer who charges premium prices before you get premium prices.
3. What is your hourly rate?
How much are you charging yourself to make a cake?
This is not profit, this is your hourly rate.
Get clear on your hourly rate because then you will know how much you are really getting paid when you raise your prices.
Raising your rates is not something where you say, “Oh, I’m charging $2.00 more.” You have to understand why and what it will do to your business.
When you really understand the business side, pricing, expenses now, you probably will see that you need to triple your prices.
But that first comes with getting real with the numbers of your business.
Perfectly Price your Cakes & Attract High-End Cake Clients 6-Week Workshop will teach you the business side of your cake business, and how to price your cakes so you know exactly what to charge and how much to charge.
Turn your expensive hobby biz into a real high-end cake business by treating your business as a real business that makes real profits.
Working with me side by side on your cake business will completely transform how you price your cakes, and how you ‘do’ business.