Wednesday, March 15, 2017
The Worst Business Advice I Ever Heard
I was thinking about what the worst advice I'd heard was, and it all came back to pricing.
The first bad advice is to take the cost of your ingredients and multiply it times three to get your selling price. No, just no. That won't give you enough profit to maintain a business.
The second part to this is to price low to start with because "You're just starting out." No. You don't need to price at the top of the range in your area, but if you're good enough to sell cakes, you should be charging the correct amount. It's a really bad idea to gather a client base that wants to underpay, then try to raise prices later.
The third part to this is the idea that everyone "deserves" a custom cake, so you should sell them for cheap. No, they don't. A custom cake is a luxury item, not a right. You'll end up being the cheap cake lady who burns out from being overworked if you try to give everyone more than they want to pay for.
If you see yourself in any of these three pieces of advice, go get my pricing guide and force yourself to take a hard look at your process. Go through the worksheets and do the math to figure out how much you should be charging, then stick with it. Don't fall for bad advice, do the math and figure it out the right way.
Kara Buntin owns A Cake To Remember LLC, online cake supplies at www.acaketoremember.com and www.acaketoremember.etsy.com