1. It is not possible to set a price structure before placing orders.
We’ve seen some mistakes repeated over and over again that we could have avoided with a little planning. Here are some examples.
It is not the right time to start thinking about pricing after you have taken an order. Many people get into the cake-decorating business by accident and never give it any thought. You should first determine your costs and pricing structure. You can get an order from a customer, then tell them, “Let’s work up a quotation and get back to you in an hour.” It is much better than just throwing out a random number. Never, ever book an order before discussing the price with the customer. This will only lead to confusion and frustration. It is unprofessional to avoid payment and cost issues and then expect to sort them out during delivery. See our article about how to price cakes for more information.
2. It is not a good idea to take orders before establishing policies.
When will payment be collected – when the order is placed or at delivery? Do you require a payment in advance? Is your deposit refundable (hint: YES?) Do you accept personal checks? If you will deliver, what is the cost? Will you charge for the tastings? Will you limit how many people can attend a taste test? (Hint: YES!) How long in advance do you have to pay for the wedding cake? Will you leave a cake at a celebration without payment? (Hint: NO! (Hint: NO! Do you have a set minimum order? Before the orders begin to come in, think about these and other things. To get you started, here is an example of our cake contract.
3. It is not a good idea to have a menu planned before you take orders.
When you have a paid order, it is not a good time to try out new recipes. Decide on the flavors you’ll offer (cake, frosting, or filling). Be sure that your recipes have been tried and are delicious. Decide now what you will say when a customer asks for a cake that’s not on your menu or asks you to make her Great-Great-Great-Grandma’s recipe for banana cake. (Hint: NO)
4. Let the customer (cake) be in charge.
You don’t have to let your customers decide how you run the business. What would you do if you were presented with a picture of a gorgeous fondant cake from a bride, but she demanded that it be made with cream cheese frosting because the fondant was “gross?” This is the beginning of a Cake Disaster. A bride once told us that she refused to have “wooden sticks in her cake” because she did not want them. The cake fell because the baker agreed to her request! You are the boss of your own business. You are the expert. Tell a client if they ask for something unrealistic. Do not risk headaches or disasters to get the sale. Some sales just aren’t worthwhile.
5. Reproduction of copyrighted characters without permission from the owner.
Mickey Mouse, Mickey Mouse. Elmo. These are all very popular cake requests from parents, and they’re fun to make. They are all copyrighted, meaning that you cannot reproduce them without permission. This can be difficult or expensive in some cases. Michael Atkins, an attorney, has written a copyrighted cake.
6. Checking local health regulations prior to ordering.
Make sure that you comply with all the necessary laws in your state.
7. Social media is a great place to air dirty or personal laundry.
It is a recent issue that has arisen in the last few years, as both cottage food laws and social networks have exploded in popularity. We strongly recommend that if you have a Facebook or Twitter page for your business, you only post business-related content. Social media posts under your company name should only have one purpose: to promote your business. Your business will suffer if you post about your personal life or a dispute with a colleague.