TF3":2jvtrcgs said:
Don't compete with Walmart.
They are not your competition... you don't make what they make.
Raise your prices, market yourself to people who buy good cakes, not people who want something cheap.
^^^YES! My thoughts exactly!
Reminds me of a yard sale we had once. Actually, we set up at the flea market, because we were too rural. Lots of people had yard sales that way there. But anyway...
We had a set of speakers to get rid of, but they needed new wiring. My husband happened to have plenty of the needed wire on hand, so he rewired them himself, and set them out on the table for $5, noting they were newly rewired.
I can't tell you how many people picked them up and looked them over with this funny look on their faces, and then put them back down and moved on. After watching this for a while, I finally told my husband that I thought they were priced too low. Everybody thinks something's got to be wrong with them.
He raised the price to $10, and they sold within 5 minutes to the next person who picked them up.
TF3 is exactly right. Walmart is for people who are looking for a cheap product. You are for people who are looking for an awesome product. If you try to compete with their prices, you will lose money, and you can't stay in business like that. Decide how much of a wage you want per hour. Keep track of that, and of the cost of the supplies used for the cake. Double or triple the cost of supplies, and add your wages calculated for that cake. That will help you price similarly involved cakes in the future, so the up-front price you give becomes a better reflection of what you put into it.
Then it's all a matter of marketing. If you don't make it, it won't be because your prices were too high (you're not getting the business now, even at Walmart prices). It'll be because the market simply is not there in your area. But with good marketing (great suggestions already made by others), you might be able to create the market.