Are You a Cheap Cake Lady?

Are you the “Cheap Cake Lady?” You know, the cake baker who is not confident in her skills or not confident enough to price for profit. If you consider yourself the “Cheap Cake Lady” (CCL) ask yourself, who am I competing with? Walmart, the local bakery, another home-based baker? Ask yourself, who is your ideal customer? Can you describe the person who orders from you? Create a customer profile, along with the type of cake they ordered. When you write this down, you will start to see a pattern. It will look something like this. My target customer is a female, 29-45, married, 1.5 children, single mom, living in the northwest part of XXXX. She orders simple cake flavors, buttercream icing, serving 10-20, etc.

Cheap Cake Lady Customers Want

  •  A deal, any deal.
  • A lovely cake at a cheap price.
  • A baker to take advantage of.
  • A lot for a small amount of money.
  • The opportunity to take advantage of a talented baker.

Take a moment to describe the profile of your perfect customer. Think about who you want to sell your cake to and how much you want to charge? Don’t think about any customers you’ve had in the past, start to profile your “perfect” customer.

Cake Lady Profile

  • What does she or he look like?
  • How much are they willing to pay?
  • Are you willing to deliver cakes to this customer?
  • Are you willing to charge for the delivery of cakes to this customer?
  • Where does your perfect customer live (what neighborhood)?
  • Describe the customer’s demographics, age, psycho-graphics product expectations?
  • Remove all baked goods that do not increase your income. “Get rid of the small stuff.”
  • Make a list of your special skills and showcase those skills in every product.
  • Brand yourself as a premiere baker specializing in ____________________ (fill in the blank.) Remember, mediocre is easy.
Why are you the “Cheap Cake Lady”? You lack the confidence to ask for your worth. your initial sale feeds your ego; repeat business feeds your wallet. Slow and easy wins the race. Unfortunately, we have all been a “CCL” at some time in our baking career. The key is to recognize it and jump ship fast!

There is no reason to struggle with pricing. If you’re running a business, you’re focused on three key metrics: cost, revenue, and profit (or margin). Your goal is always to cut costs while maximizing revenues. And hopefully, you’re setting aggressive growth goals for your company.

Another Great Read:  Ultimate Pricing Checklist

Pricing is Practical

For many business owners, pricing is practical. You choose numbers that will pay your salaries and keep the lights on. You pick numbers that will be competitive with the market and, well, that’s it.

There is a key component that is missing when it comes to pricing for profit. Buyer psychology.

Pricing transcends profit margins. Its sole goal is to boost sales volume. When you think about pricing, you need to focus on more than what will cover your company’s operating expenses and pay the bills. You need to choose numbers that will motivate your audiences to buy.

Instead of showing customers what they should expect to spend, show them what they are going to earn.

Don’t look at the glass as half empty, look at it as half full.

Don’t get fixated on how your product delivers the best in the industry. Communicate something more, namely how your product comes with unbeatable results.

Another Great Read:  How To Price For Profit: 9 Things to Consider

One example involves how you might talk about the amazing anniversary cake you’re about to sell for $195. Focus on the fact the cake is saving the customer time and energy. You have this remarkable product boxed to perfection. Complete with an individual buttercream rosette accompanying each slice.

You have made slight indentations where the hostess will cut the cake. You recommended the perfect dessert wine and a cake card that describes every detail of the cake.

You even went so far as to provide a miniature cupcake. This allows the customers to taste the cake beforehand with a cup of tea while waiting on her guests to arrive. It’s not about price, it’s about everything else.

The next time you have an order, ask yourself is there anything else you’ll be delivering. Don’t let the product stand on price alone. That should be the furthest thing from the customer’s mind.

Are you ready to register for our Pricing for Profit webinar?

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