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http://www.cakedecorationmagazine.co.uk``````Continuing what we started last month, we're going to crack on and keeplooking at pricing. It's a BIG topic. We may just about make it onto somemaths this time, but there are still other aspects to consider before puttingpencil to paper and calculating your prices.KNOW YOUR MARKET...44 | September 2018``````T^ is^ Cake Life...### WORK SMARTLast month we looked at howcustomer perception - what peoplethink your products are worth - canimpact your ability to charge,your reputation and your place inthe market: are you a Primark,M&S or Harrods? Followingneatly on from this and of equalimportance is the need to knowyour market. If the bread and butterof your business is novelty cakes,in an average area, your market- and therefore your marketing,advertising and pricing - will becompletely different to someonemaking luxury wedding cakes in avery affluent area. You need to knowwhat you are trying to sell and towhom as this will affect marketingand pricing. Are you after a high number ofsimple cakes for kids' birthdays,or fewer more complex fancyweddings? Do you need to marketas fun and accessible? Or mature,proper and exclusive? One often sees the phrase 'chargewhat you're worth'. I agree withthe basic sentiment, but as I hopeyou're starting to see it's just notthat simple... A birthday cake withtwenty handmade models will needa high price tag as it's taken agesto make, totally get that and agree.But, and this is a big but, it is stillA little cake love...For expert cake advice anddelicious features from thebest in the cake business,follow our Cake Decoration& Sugarcraft blog.http://www.thiscakelife.co.uk``````a birthday cake and so for manypeople they won't want to pay asthey don't see a birthday cake ashaving a high enough value tojustify the price tag. This is whereyou need to manage customerexpectations and work smarter,rather than harder. Instead ofagreeing to do twenty models forthe cost of two, explain that it's verytime consuming and thus costly,suggesting that you maybe do twoor three favourites, or suggestbuying toppers to incorporate intothe design - the child won't care andyou won't have worked for free.I have found that explaining why itcosts, laying out the time involvedand stating that the models - or``````whatever cake item is relevant - arehandmade will really help customersto understand your pricing and/orwhy they need to scale things backa little. Remember that they are notcake experts and they don't knowwhat they are asking: requesting tencharacters has happened because,well... there are ten characters inthe show! Not because they havethought or considered that it's tencharacters that need to be made,by hand, by you, over days and days!It's not ridiculous (as some maysay!) to charge £100s or even £1000sfor a cake... what's ridiculous isthat customer's expectations haverisen so high that they want andexpect something that requiresp44-45_This Cake Life.indd 44 09/08/2018 17:54