Every cake designer goes through this stage in their cake business.
You want to book more cake orders so you can grow your cake business.
But you are spending SO much time on you cakes that you feel you aren’t charging enough.
Especially when you look at your bank account and see not that much is there at the end of the month.
If you aren’t sure you are undercharging for you cakes, here are 4 ways to uncover if you are:
1. You ask yourself if you undercharged or ask other cake designers in Facebook groups.
If you start to question if you undercharge for a cake, 100% of the time, you did undercharge. When you charge for a cake you know is worth exactly what you charge, you just know it.
Your intuition is usually always right and if you have to get confirmation from others or asking yourself if you charged enough, chances are you didn’t charge enough.
2. You begin to resent the cake order.
Have you ever worked on a cake order and it was taking twice as long as you imagined?
Deep down, you know you didn’t charge enough because it’s taking a long time to complete the order and you are getting aggravated at how long it’s taking.
If you start to become annoyed at the cake order you are working on and knowing it’s taking you twice as long, chances are you know you didn’t charge enough.
And when you do the actual math, you’ve made $5.00 per hour on the cake after expenses.
3. You are B.R.O.K.E. at the end of the month.
Ever wonder in your cake business, “Where’s all my money I’ve made?!”
After you see you spent it all on personal expenses, some cake things here and there, you are BROKE at the end of the money.
Trust me, I’ve had so many BROKE stories and how I’ve overcome them: Read that post here.
No matter what kind of business you own, you need to have a surplus of money at the end of the month. That helps you to know you are making money in your business.
If you ever wonder why your cake business income isn’t growing, chances are you just aren’t charging enough.
4. You let your customers quote your cakes.
A customer comes to you and they only have $150 for a 3 tiered cake with all the bells, whistles and glitter.
And she tells you her budget. You desperately need the money so you agree to charge what she has.
Deep down, you know the cake is probably double what you just charged.
Don’t let customers dictate your prices. Do you go into Walmart and say, “I only have $2.00 for this $15.00 shirt.”
The cashier will look at you like you have a third eye and graciously tell you sorry.
You have to treat your cake business in the same manner.
If the customer can’t pay your prices, she will happily find someone who will. Let that cake designer spend 10 hours on a $150 cake.
There’s always someone who will do it for cheaper. Don’t let that be you!
Speaking of charging for your cakes, I have a FREE Workshop I created to help you learn 4 Pricing Strategies to Price your Cakes for Profits.
If you are ready to learn exactly how to price your cakes for profits, enroll in this training ASAP and I will give you 4 strategies on exactly how to price your cakes, raise your rates, and attract the clients who will pay your new prices!
I hope these 4 steps gave you a confidence boost to know you aren’t charging enough and it’s time to raise your prices!
Is there a time you undercharged for a cake and regretted it later on? I’d love to hear! Please share below in the comments!