Confidence.
Hello, welcome back to a slice of success cake business talk.
I am so glad that you're here for another episode . So how is your week been?
I hope you've had a really great one on whether you've been like knee deep in Korders, which obviously would be amazing, whether you've been working on your business because we can't just work in our business all the time, we do have to work on our business, or maybe you've just been taking a well earned break and that would be lovely too.
It's been a very a bit of a busy one for me this week.
I am going to talk about it a little bit um but I am so excited to just sit down and chat with you today but before we dive in to today's episode, I just want to quickly mention that if you are looking for more support and guidance in your cake business, my brand new membership, the confident cake collective is now open.
It is the perfect place to get expert advice training and a supportive community of fellow cavemakers because the community part for me is is massive.
But I'm gonna share more details at the end but if you are curious right now, go and check out the link in the show notes.
Okay, so let's dive in today's episode.
One of the biggest struggles that I see cake makers and cake business owners face is feeling confident about their pricing so if you've ever worried about charging what your cakes are actually worth if you are stressed about what customers might say or that you fear losing orders because of your prices, then this episode is for you Pricing can feel really Can't feel really overwhelming, but it doesn't have to be.
I mean today we're gonna break down the mindset behind pricing.
And how to actually feel good about what you're worth and charging what you're worth?
I mean, I used to struggle so much with pricing . I would undercharge because I thought that no one was gonna pay more and I'd get more orders if I charge less.
But once I actually made the mindset shift and I started to own my prices, everything changed . Before we dive in to actually how to price with confidence, I wanna talk about why pricing feels so tough.
And I know this is something that almost every cake make a struggles with at some point.
There are a few big fears that come up when it's time to set prices or whether it's time to raise them.
And trust me, I've been through all of this.
I've had all of these thoughts myself.
So the biggest fears usually are what if no one books me at this price?
What if people think I'm too expensive, what if other cake makers charge less?
And I have no doubt that that sounds really familiar to you.
Um, but if you have ever had these worries, you are not alone.
So I'm gonna break them down, but the truth is, these fears are not focused on facts.
They are actually just our minds trying to keep us comfortable . So when we talk about, like, the fear of no one booking, no one's gonna book me at this price . We assume that if we raise our prices, all of our customers are going to disappear.
They're all gonna say no, too extens.
I'm gonna go somewhere else.
But actually, what happens is yes, some people are gonna say no, and they are gonna go elsewhere . But the ones who really do value your work, they are still going to work , but what's even better is you're gonna start attracting higher quality customers higher quality customers , who respect your time and your skills.
I mean, when I first raised my prices, when I was making my wedding cakes, I did decide to obviously raise my prices because every year we should be raising our prices in line with inflation, etc., etc. So when I first raised my prices, I was so sure that no one would book me and I actually almost talked myself out of it, but I stuck with it and instead of losing customers, I actually started booking better ones.
Customers who didn't question my prices and who treated me like a professional and not a hobby baker.
It was it was It was weird at first , having these customers come in and when I would give them my new prize, they wouldn't hesitate.
They immediately saw that I was charging what I should have been charging instead of charging to get customers.
Who expensive.
Who extends the hell?
Arjing to get customers.
The fear of being too expensive. This is really just a mindset shift.
So, instead of thinking, I'm too expensive, you have to reframe that thinking.
So you have to reframe it as if I provide a high quality custom service, and my pricing reflects the time scale and effort that goes into each cake.
So it's not I'm too expensive . It's My prices reflect my cakes, my skill and everything else that goes into each one, and and that's how you need to think about It . it is reframing and doing a mindset shift.
There will always be people looking for cheap cakes and and that's okay . There are cake makers out there who will cater for those customers.
Aunt but those aren't your people.
If you are looking to raise your prices, then the people looking for cheap cakes, they're not your people.
You know, if if a customer comes and says, well, that was more than I was expensive, I I Don't panic.
You know, if if a customer comes and says, well, that was more than You know, if if a customer comes and says, well, that was more than I was expensive expecting, or you're too expensive . Don't panic.
So, for example, the customer says, that's more than I was expecting to pay.
Instead of saying, oh, I'll give you a discount, etc., etc., you just simply offer them a smaller, more budget, friendly option that's gonna fit in their price range.
Don't justify your pricing to them.
Just let them know . What options they've got inside their budget if there is any at all?
You know, if they come to you and say I would like um a 10 inch birthday cake with this, this and this all over it.
My budget is 150 pounds and you say, well, that takes 2000 pounds.
Don't say, oh, I'm sure I can make it cheaper for You . you would say, okay, well, your budget doesn't quite stretch to that, but I could offer you a six inch cake in that price.
You're gonna get less portions, but it's still gonna be just as amazing.
Give them the option.
Let them choose what works for them.
And, you know, if they're still not happy, they will go somewhere else and that's okay . So, then we got the fear of Other cake makers charging less . And this is a big one, because let's be real, there are all ways going to be somebody charging less.
But you are not in a race to the bottom.
For the fuck's sake. . Coming on price attracts the bargain hunters and they do not value your work.
So instead, you have to focus on what set you apart . Your skills, your designs, your customer experience, these are things that people will pay for.
So I used to look at the other cake makers who were charging less and I would worry that I was pricing myself out.
But when I stopped comparing myself to them and atoph focused on my business, I realized that my ideal customers were happy to pay for the expertise and the experience that I provided.
At the end of the day, pricing fears are completely normal, but they don't have to control You . you deserve to be paid for your time for your skill and for your effort and the right customers will pay for that so please please remember that you need to charge your bath Okay, so what is the real cost of undercharging?
So let's talk about what happens when you don't charge enough because while pricing low might seem like a good way to get more orders, in reality, it is going to do more harm than good, because when you undercharge, you're not just affecting your bank balance, which is you know, a huge thing straight away, but you're also affecting like energy and you're confidence and the ability to grow your business.
So, under charging, what does it lead to?
The first thing it leads to is burnout, you're making more cakes, you're working longer hours and you're making less money.
So if you're constantly making cakes but barely covering your costs, how long can you keep going like that?
You're gonna be exhausted.
You're gonna be working late nights and you're barely making a profit and that's just not sustainable.
I used to take on way too many cakes at ridiculously low prices and that was just to keep the orders coming in.
I was working all hours and not to mention I had a day job as well, so I had a day job, I was coming home and I was working every single evening into the early hours of the morning and doing it seven days a week.
And I was missing out on time with my family . And I was still making I was still I was missing out on top I can I was missing out on days a week and I was missing out on time with my family and I was still making I was missing out on time I was missing out on time with my family and I was still struggling to make ends meet . Then you've got the feeling of being undervalued . Customers who don't respect your work.
So when you charge too little, you do attract customers who expect a lot, but they don't want to pay for it.
You know, they ask for discounts.
They ask for last minute changes.
They don't always appreciate the time and the skill that goes into your cakes.
I mean, I had a customer who booked a really detailed cake for a very low price, and then they kept adding more requests, and because I was already undercharging, I kind of felt like I had to I couldn't push back.
I had to do it for them . So by the time that I finished the cake, I realized I actually made pretty much almost nothing . For all the hours of the work thing for all the hours of the work.
And do you know how demoralizing that is.
It's so bad.
I I just don't want it for you, so this is, you know, please pay attention.
Okay, so another thing is that when you under charge, you don't have room to grow.
So you can't invest in the batter tools.
You can't invest in training or marketing . You know, if you're barely covering your costs, how do you invest back into your business?
How do you upgrade your equipment?
How do you take that amazing course that you've been eyeing up ? How do you market yourself properly?
Once you stop pricing your cakes properly , you can then use the profit to invest back into your business because once I started pricing my case properly, I was finally able to invest in a sugar paste sheeter or refundant sheeter if you are overseas.
This was huge for me. And if you know anything about these electric And if you know anything about these electric sugar paste sheeters.
They're very, very expensive, but not only did it make my work easier.
I mean way easier, but it actually also improved the finish on my cakes.
So my cakes looked better, which meant I could then attract better people and so forth and so forth.
You keep growing when you're charging right and you're making the profit, you invest back into business and you grow and you grow and you grow.
It's not just about making more money for yourself.
It's making a better business for yourself as well.
So when you think about it, would you rather take on 10 low priced cakes and feel exhausted, or five well paid cakes and feeling control of your business because you get the same income, but you get it with half the stress twice the time to focus on what you love.
I mean, at the end of the day , under charging doesn't just impact your income.
It impacts your entire business and your life and how much you enjoy what you do you have to enjoy what you do to be able to continue doing it because as soon as you stop enjoying it, you're gonna wanna quit.
So how do you set your prices without second guessing yourself?
Let's talk about the steps that you can take to price confidently and feel good about what you're charging.
So it all comes down to mindset, numbers and practice, and here is how you're going to do it.
So number one is you are going to know your costs.
That's every ingredient, every hour, every expense. Start by figuring out what it costs to make a cake, so that includes the ingredients, the electricity, the gas, the rent on where you are, your packaging, the delivery costs. Everything else that you can think of.
You've got insurance and everything else.
It all goes into pricing your cake.
Most importantly, your time your time is valuable and you need to pay yourself like a professional so when I actually sat down and calculated my costs, I realized I was barely making a profit.
I had literally been picking numbers out of thin air, instead of charging based on what I needed to earn.
I would just sort of say, right, that sounds, right, that'll do.
And I realized, I mean, my first wedding cake, I made a loss.
I mean, that's that's how bad it was.
It's okay, so number two on how to price roll cakes for confidence.
There's number two.
Stop comparing yourself to hobby acres.
I mean, this , this is big.
You are running a business.
You are not baking as a favor, okay?
And there are always going to be people making cakes as a hobby and charging next to nothing. But it doesn't mean that you should too, you're offering a professional services and your pricing should reflect that.
If you're looking across social media at these people and saying, oh my goodness, they're so cheap, how can they charge so little ? It's likely they are not set up as a business.
It's likely we are a hobby baker and they're just posting their cakes online. And first of all, you actually shouldn't be doing that.
But, you know, looking at those people and saying they are so much cheaper than me is probably because they are hobby baker and not a professional business.
When you look at local bakers charging ridiculously low prices and worrying about competing with them , you're not trying to be the cheapest, you're trying to run a sustainable business.
Okay, so numbers three. Charge for your skill, not just ingredients.
People pay for expertise.
They don't just pay for flour and sugar and eggs.
So your pricing isn't just about the ingredients.
It's about the years of experience and the skill and the attention to detail that you bring to every single cake . Custom cakes are a luxury, then not a necessity.
People expect to pay more for something that's handmaid and unique, so think about it.
Somebody can go and buy a cake from a supermarket . They can buy it for 10 pounds, but they come to you because they want something special, so they're paying for that they're paying for your design skills, your expertise, the custom service that you provide.
They're paying you for all of that.
It isn't just about the ingredients, because if it was they would go to the supermarket and buy a cake.
It's about your skill.
Okay, so number four practice saying your prices like you mean it.
No apologies, no hesitations . One of the best things that you can do is practice saying a prices out loud, until it feels natural.
It's gonna take a while.
So the way you say your prices affects how customers react if you sound hesitant, if you sound like hm, I'm not too sure about that price, they are going to doubt it themselves.
But if you quite clearly say this is my price, that going to accept it.
So for example, I I would always say my cakes say the prices So if you say I are if you set dumpo.
There's a few say, um, you know, if somebody comes to you and says, how much is this?
And you sort of say,Ooh, it's 150 pounds.
That sort of says, is it?
Is it like a question?
Am I asking you?
Is that the price?
You don't wanna do that, you don't wanna go there with hesitants.
You want to say, my cakes, start out, or that cake is this much.
No apology, no hesitation.
You've got to be firm.
Takes practice.
It does take practice.
You'll do it once it'll feel uncomfortable.
You'll do it twice.
It'll still feel uncomfortable.
You do it three,45678910.
It's gonna guess so much easier.
By cape number 10, you'll be like, no, that's my price.
Take it or leave it.
Okay, so number five, set a baseline price, no more making up numbers on the spot.
I just see that's so bad.
Decide on a minimum price for your cakes and stick to it.
So that way when somebody does come and ask for a quote, you don't have to panic, you don't have to want to charge, you just say, my cakes start from X. That is the minimum price.
I'm not taking anything less.
So, once you start setting prices for your cakes, you will start feeling pressured to offer discounts.
If somebody can't afford it, offer a smaller option instead of lowering your prices.
You know, at the end of the day, pricing confidently is a skill, so the more you do it, the easier it gets. And the more you believe in your pricing, the more your customers will too.
Okay, so handling pricing objections, what happens when someone t Let's go back. Handling pricing objections.
What happens when someone tells you that your prices are too high?
This is something that can really shape your confidence if you're not prepared, but I want to talk about how to handle that without feeling stressed You've got to remember that objections don't mean that your prices are too high.
They just mean that that customer either wasn't expecting it.
They particularly can't afford it so they are not your customer so instead of feeling defensive or panicking, stay calm, stick to your pricing structure.
So if somebody comes along and says, wow, that's more than I expected.
Instead of rushing to lower the price, say , I understand.
If you're looking for something within a different budget, I'm gonna offer you a smaller size or a simpler design.
It keeps the conversation positive, so it doesn't say, well, , oh, I'm gonna discount you or oh, well, you you can't afford me, so you need to go somewhere else.
It keeps the conversation positive and it puts that decision back in their hands.
So, you know, they've come back to you and said, oh, that that is more than I was expecting.
I'm not sure if I'm happy with that price you go back and you say yeah, no, I completely understand.
I can offer you something smaller or we can change the design that's going to fit your budget.
That gives them something to think about.
It gives them that decision again, it gives them the power, essentially, to make that decision.
You've gotta be clear.
You've gotta be clear up front as well.
So clearly putting your process on your website or inquiry form is going to reduce that sort of shock of, well, that is more expensive.
So having a pricing guide that explains the value of custom cakes, Hope's customers understand what goes into their pricing.
Stop decision.
It's a great idea to have starting prices clearly listed on your website or on like your inquiry form because it's going to reduce that shock of well that is more than I expected so having that sort of base price as such, you don't have to go and list every single cake and every single price on your website, but having a price that's sort of says my cakes start from As soon as somebody goes to your website and says, oh, okay, so I know it's going to be at least that price. They can make that decision before coming into you your emails and saying, oh my goodness, okay, I'm going to go.
You've got a rackize when someone isn't your customer as well so not everyone is gonna be the right fit for your business and that is ok . It is better to let go of a customer who isn't aligned with your pricing rather than lower your value to fit their expectations, but the key here is to be confident in your pricing and not let the objections make you feel like you have to undervalue your work So how can you raise your prices confidently let's talk about something that can feel even scarier So now that you know how to price confidently, I'm gonna talk about something that's even scarier.
How can you raise your prices?
So now that you know how to price confidently, I'm gonna talk about something that's even scarier and that is raising your prices.
OK so why is rising your prices necessary and because costs go up over time and so should your prices the cost of ingredients, the cost of insurance, the cost of electric, the cost of gas, the cost of rent it all goes up over time.
So if you are still basing your prices from three years ago on everything that you costed up three years ago, you're going to find that you are not making the same profit that you used to and it could possibly be now be making a loss . So, you need to go over your pricing structure, go over everything that you priced three years ago and repriced that because you are going to be shocked at how much everything changes but another thing that's changed in the time since you priced up your cakes is your skill.
Your skills have improved so now your pricing really needs to reflect that. If you had an hourly price based on your skill three years ago, your hourly price should be much higher now because you got three years worth of experience.
So you want to start with really small incremental increases rather than a sudden jump ? The small incremental increases don't have such an impact on your audience, first of all.
It doesn't also have a huge impact on you.
It feels so much better to have that small increase than the sudden jump because if, for example, you charging 100 pounds today But you actually should be charging 150 for the same cake rather than saying I'm now increasing my price by 50% that's massive that is a shock to the system.
You it's a shock to your system and it's a shock to your customer system.
Do it small and slow.
So up by 10% And then in a few months up by another 10% And do it that way.
It's easier on your nervous system that's for sure and you can test that new price on customers before adjusting for returning ones.
So you know, if you've got constant returning customers and you don't want them to go elsewhere, test your new pricing on the new customers, because if they're happy to book, then you're happy to say, okay, I'm sorry, but I've had to rise my prices.
Once you raise your prices, by 10%, you don't need to worry about losing customers.
No one's gonna question it because they are going to value you work if they're returning customers.
And if you have repeat customers, let them know about the upcoming price change in advance.
Don't just throw it at them.
You could announce it on your website.
You could announce it on social media and say I am having to raise my prices just so you know from X date I'm going to be slightly more you know it's gonna be 10% extra it's going to start from this race or whatever, do it in a way that works for you. But you wanna position the increase as a natural part of providing a high quality product.
If customer asks why prices have gone up, just simply say I want to continue using the best ingredients so I've made some small adjustments to my pricing and you got a reframe your mindset around raising prices higher prices attract better customers who value your time who value your skill raising your prices hopes you avoid burout and it creates a sustainable business if part of growing a successful business the more confident you are in your value the easier gets.
This comes back down to, you know, a mind set shift.
People who look at a higher price, they give it more value than a lower price.
I actually had a coaching client who has recently up leveled her pricing.
She's raised her prices and she actually said to me that since she's raised her prices, the customers that are coming to her haven't really questioned it, whereas before she was getting customers who would be sort of like oh, well, okay, well, maybe I don't know.
Now she's raised them, she's sort of attractting the customers that are saying, yeah, no, that's fine.
Because when you raise your prices, a different kind of customer comes to you. And it's those customers that see the value.
It's those customers, you know, it's like when you see something online and you say, well, that's really cheap, is that actually going to be good quality?
You know, if I see something that should be priced around 20 pounds and I've seen it for five you're sort of like how bad is that gonna be?
It's gonna be is it gonna break on the first time I use it whereas if you see it for the price you kind of expect it to be you're likely to buy it.
You'll like more likely to buy the more expensive one because because you know it's going to be quality You're not likely to buy that cheap version.
You know, it's kind of like buying from Sheen or Timo.
You kind of know because they're cheap, the quality isn't going to be that good.
Whereas if you go to a well in the UK, if you go somewhere like Curry's or Argos, you know, it's more expensive, it's kind of likely to be better quality. So that's the way you need to look at your pricing on your cakes.
If your're charging too low, people are not gonna see the value in it so the more confident you are in your value, the easier it gets.
Okay, so if today's episode resonated with you and you really wanna get more support in growing your business, I really want you to come and join the confident cake collective.
It is my brand new membership.
I'm so excited where I am going to help cake makers just like you gain confidence in pricing and marketing, basically and just building a business that works for you. You are gonna get access to live trainings.
There's a supportive community because I I talk about community a lot.m community is huge because we work alone.
So having somewhere where we can go and chat at other people who are in the same position as ours who have the same worries and concerns as us, it's just invaluable.
It really is.
So, you know, there are lots of things. And I'm gonna leave the link to the membership in the show notes below.
Now it is Tuesday when this episode goes live, Tuesday. Oh, what's the date?
Tuesday the fourth and you only have until Wednesday the fifth so I went to the fifth so I went to the fifth at 9 PM the UK time is actually when at the doors to the membership close, so you don't have long, but if you have been thinking about getting some extra help in your business, I would love love to have you in the membership and you can learn more all about it if you go and have a look at the link.
So thank you so much for joining me today.
I really do hope that hope oh my goodness.
I really do hope that this episode has given you the confidence to pricel cakes in a way that feels good to you and I hope that it supports the business that you want to build so if you enjoy this episode, I would really love you to share it with fellow c cake makers who might also need to hear this, and if you've got any questions any thoughts or anything like that send me a message I would love to chat.
Thank you for tuning into this episode.
I will see you next week with more tits to help you grow your cake business and until then keep going and keep growing.
