Discounting your cakes?
One of the things I like to ask our cake decorating community is ‘Are you discounting your cakes?’
The astonishing thing is some cake decorators are not even sure of what the price should be!
Recently I had a conversation with a young lady. Let’s call her Michelle. She was so nervous of her cake pricing – that she knocked down her price – giving a large discount at point of collection.
So when I asked her ‘Are you discounting your cakes?’ Her answer would be – ‘Not initially’. But then she would feel guilty to charge for something she enjoyed making. So mentioned a discount to compensate for her feeling bad!
Michelle had not fixed the price at all nor got any form of agreement of the final price the customer would expect. (Her husband was getting grumpier and grumpier about this habit) She had to stop!
So what could Michelle do better?
- Before even starting the cake, she could have had a discussion with the customer.
- She could break down the costs into ingredients and the labour.
- The customer would agree the price before making the cake.
- And Michelle would not discount it at point of collection/delivery.
Some cake decorators communicate solely via email these days.
I surveyed an audience asking them how they would like to receive communication. They all voted via a proper conversation.
So this initial pricing/design discussion is best done verbally.
So many people are using email to communicate nowadays. (And dare I say – hide behind) This is fine for an initial inquiry.
But it turns out – customers actually prefer to have a discussion.
The thing is this, if you don’t have a conversation, how can you ‘sell’ your design?
Let alone justify the cake price?
How can you adjust the design, depending upon the reaction to the price or design?
This conversation does not work via email.
Plus I have other ideas that you could offer a customer. Strategies to increase the order value and still have happy customers. And these tips are nigh on impossible to carry out via email. They need an open conversation with a potential customer.
You cannot hear the tone of voice that the customer is using; you cannot pick up on any clues.
Does she sound excited and hopeful?
Is she/he hoping for a serious creation, or a budget bargain basement?
You can only pick up these things by speaking either face to face – or at worst on the phone – but definitely not via email.
So the cake decorators who will win the cake contracts and make sensible money from their craft skills – are the ones who follow up with a conversation and achieve happy and excited customers.
Speak to customers – because that is what the customers are expecting.
If you are interested in using a professional order form with your customers – check out our unique downloadable use over and over again Customer Order Form.
Using this tool means your customer knows exactly the price of her order.
This will prevent any desire to discount an order upon collection.
The use of this Order Form could have stopped Michelle from her strategy.
After all ‘discounting your cakes on the door step’ is not a good business idea.
CLICK HERE to find out about our unique Customer Order Form
Have you seen our Cake Pricing Guide yet? If not grab a copy here
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