Crikey, it's been a bit long since my last blog post! Since it's been so long and I've now got a new business name, I thought I would make a new Mrs B. So here I am, *Hi!*
I was just in the kitchen and had a random thought, whilst adding the eggs to the cake mix, about how I started out as a business. I'm sure a lot of you have already read my guides to starting up your own business, so I would hope you have an idea of the steps you need to take, but I never touched upon how to actually get going once all the forms and paperwork are done, where do you go from there?.... so todays blog is about cheese... no ok, it's about how to actually get started, finding yourself a customer or two and how to price your work.
So I've got about 60 minutes to write this whilst my Vanilla cake is doing its merry dance in the oven. I'm sure it won't take me that long, but I do love to waffle, so you never know :p
A free cake isn't good, a good cake isn't free. Although I have to say it's pretty good for a freebie!
Firstly I wanted to talk from personal experience about how I started. My situation will be a little different from a lot of yours as I had only recently moved into a new town, so had no friends to make cakes for as they're all back in Southampton.... *waves, miss you all*. So I offered my cakes for free,.. yes free... (must have been mad!), on the local freecycle group. Within 10 minutes of posting my inbox was flooded with people requesting their free cake! I ended up deleting the post after the 10 minutes as I was in danger of working myself to an early grave and getting in serious debt with Tesco for all the ingredients I would have needed!
At the time I was convinced that those people getting free cake would tell their friends about the new baker and I would get some orders from it. It didn't work. I guess people who want free cake, want free cake for life? As the only repeat "business" I got was from them asking for another free cake! It wasn't without merit though as it did give me enough orders that I could boost my portfolio and hopefully entice some paying customers to my web of sticky cakes.
I remember at one point someone asking for a second free cake and I said I would do it for £13 (8" cake decorated with a theme) and told it was too much... lol. Oh well we live and learn.
Onto my next brainwave.... summer fetes! That'll be a sure-fire way to get my cakes eaten and enjoyed, and then some orders. Wooo! I spent a day baking up a storm of cupcakes. Bought some of those little plastic pods and stuck my business details on them. Delivered them to the cake table as they were a donation. My thought was that yes I would lose money, but I would gain some exposure, so that was worth it..... WRONG! I walked past the tent about 5 times and saw that none of my cakes were being eaten, I was gutted. I ended up walking past a few more times and got so depressed I left. And lo and behold, didn't hear a single peep from anyone wanting to order a cake.
Man, this is hard work! I just want to get some orders. Why won't anyone order from me? I'm sure most of you have either had or currently having that very thought!
The next thing I tried was a Christmas Market. Another massive fail. I was told the foot fall would be in the thousand region and that last year the stall holders were selling out of things. The doors opened and a trickle of people moseyed in to the hand crafted fair, and most of them spent their entire time around the handbag stall that was selling manufactured bags. I had one of the best stalls there from my perspective. I was right by the front door, so they walked in and saw my stand, but instead they shuffled around the side and ended up on my stall last, AFTER they had been by the tea and cakes offered by the venue. I ended up coming home with over 50 cupcakes. The stall had cost me £30, so massive loss and a very disillusioned Mrs B!
When the whole debacle about my business name came about I was all ready to toss in the towel. What was the point of having a business if the orders were trickling in at a snails pace? So I took a few months off and licked my wounds.
And then something magic happened, the Angry Birds cake. I think my most popular cake to date and the one that has propelled my business into... well a business!
The cake that got the cake ball rolling.
From that one cake I ended up getting a lot of people requesting quotes. However I don't believe that is the sole reason I'm for the first time closing my books until the new year. So I thought I would share with you some of the things I've picked up over the last year.
1. If you're doing cakes for friends and family try to do something out of the box. Always try to increase your skills, for instance try a carved cake. This is a really great way to show potential customers you're more than a one trick pony and to gain more knowledge.
2. Use the local facebay groups to promote your cakes. They're like eBay for facebook.
3. If you think a cake will look good in your portfolio and get you extra trade then offer it at a discount. This ensures you get the order and hopefully will get you noticed in the area. I did this with the Angry Birds cake.
4. If noone is ordering cakes try making some dummy cakes to entice them to.
5. If you work or your partner does, see if you can use the staff noticeboard.
6. Find out if there are any boutiques or wedding dress shops that will have your work in their window or on their displays.
7. Send your work into the readers sections of cake magazines. You never know a potential customer might see your cake and want to order from you. All it'll cost you is a CD and the postage.
8. Finally be patient! (so important it's in bold, oh yes!) It's taken a year of being in business to finally get to the stage where people know I exist. If you really want to do this as a job, then you might have to wait for the word to eventually get round your neighbourhood. Banish those negative thoughts about closing down because no-one knows you're here. They will it takes time, and it's worth it :)
Here are some of the things I tried that I don't think worked, but might work for you.
1. Advertising in newsagents windows.
2. Offering free cakes on Freecycle. (Although it didn't get me any trade, it did boost my portfolio, so I'm still happy I did this)
3. Offering free cakes on my page. I don't think I've had a single order from anyone that has had a free cake.
4. Markets. I know a lot of people that successfully run market stalls, it just never paid off for me.
5. Giving cakes to charity or events. Again never heard from anyone afterwards. Does my phone work, better ring myself to check!
*ring ring* *hi is that Mrs B?*
Finally I wanted to talk about pricing. It is an extremely hard thing to gauge and will depend entirely on where abouts in the country you are and if you live in a poor of affluent area.
I started out "selling" my cakes for free. Then within a few orders decided that was just daft, so did them for cost (that magical guesswork of a figure, how on earth do you quantify the water used? O.o). Next I doubled my costs and was selling my 8" round sponges, fully decorated for £30. There was a massive flaw there though, person A could order a sponge with just a ribbon for £30, person B could order a cake with the entire cast of the Simpsons for £30. So I was getting jipped and so was customer A, why should they pay the same and not get as much?
So back to the drawing board/calculator I went and worked out a new method of pricing. My cakes now have a base value, ie my 8" rounds now cost £50 and that includes moderate decoration and 1 model. Anything extra adds pennies onto the cost. That way I know I'm not creating enough models to start a new colony of sugar people and not getting paid for it.
Here's my current price structure.
Woah, Mrs B is sharing her prices. I know it's not the done thing by cakers. Mainly because you run the risk of having your local competition undercutting your prices. But hey, I would rather my customers knew where my prices start, so they don't end up wanting a cake for £13 from me (I bet the customer who turned me down at the start of this blog wishes they hadn't lol).
My advice for pricing is to look at what other people of the same skill level as you charge. If your cakes are better than mine, charge more! If they're not then charge less. If you're Peggy Porschen charge a lot! Wouldn't it be funny if she was reading this? lol. Just whatever you do, make sure you're happy with your prices.
If you're handing out quotes and never hearing a peep back, then you might be a bit too high for the market. It depends how busy you want to be. I've come to the decision I would rather do less work and get paid for my time. So my higher prices will put people off, but it's a price I'm willing to pay. There will always be someone cheaper than you. Offering their cakes at bargain prices, and they might actually be good, it might be another new starter trying to find their way in a market that's full to bursting.
Well I hope my waffle helps, not sure it does. I don't know if I actually answered much lol