The £50 cake: Why clear pricing conversations matter

Join the Cake Coach Online Mailing List for early access to blogs, delivered right to your inbox.

Let me share a little story that might sound familiar…

So, imagine this: A talented cake decorator’s mother-in-law (MIL) casually mentions that her friend wants one of the decorator’s signature cakes—for £50. The decorator explains to her MIL that her cakes start at £60, hoping that would clarify the cost upfront.

But a few days later, the MIL comes over and, with no further discussion, hands her a £50 note. “Here’s the money for the cake!” she says, as if it’s all sorted.

Now the decorator is in a tricky spot. There’s £50 in cash on the table, a friend of the MIL expecting a cake, and yet, no actual agreement on what that cake will look like, what size it’ll be, or even when it’s due. This situation is a classic case of pricing lost in translation.

What should she do next?

Here’s what I’d recommend:

Step 1: Reach Out Directly. Selling cakes through a third party is a recipe for confusion! The decorator needs to reach out to the MIL’s friend directly, have a friendly chat, and clarify the details. What size does she have in mind? Does she realize that her budget doesn’t match the starting price for this signature cake?

Step 2: Frame it as a “Deposit.” To keep things positive, she could treat the £50 as a deposit, explaining that it covers part of the cost but leaves a balance if she wants the standard signature cake. Alternatively, she could suggest a simpler cake design within the £50 budget, or even offer a different product, like cupcakes. This way, she doesn’t lose money on ingredients or time.

Step 3: Remember Your Worth. It can feel uncomfortable asking for more money, especially when dealing with friends or family. But this decorator’s time, skills, and materials have value. And when it’s all too easy to end up undercharging for the sake of ease, it’s important to stay firm on the pricing that reflects the work involved.

After all, let’s say she undercharges by £20 on five cakes a week—that’s £5,200 in lost income over a year! And while £20 here or there might not seem like a lot at first, it adds up fast.

Lesson of the Story? Your business, your rules. A simple conversation with the MIL’s friend could save time, prevent awkwardness, and keep everything crystal clear. Having confidence in your pricing also reinforces the value of what you do—and trust me, your customers will respect that too!

Keep creating beautiful cakes, and remember that your time and expertise deserve fair compensation!