Deal with Bargaining Customers

Q:  How do you handle customers that won’t pay your prices, and ask you to bake it for less? They may mention they know another baker who will bake it for less.

A: 

1. You say, “okay no problem, thanks for your inquiry.”

2. Stick to your prices. Let them go to another baker, who will do it for less. The customer will not be as happy with what they receive.

3.  Stick to your prices. Price according to the ingredients, supplies, time, and profit. Anything less than that, means you are shorting yourself. Once you discount your prices, you may get that client, but they will always expect a discounted rate.

4. If another baker wants to work for free, that’s fine, but I don’t. (If they’re telling you someone else can do it cheaper, they obviously like your desserts or work more, or they would have just went with the other person.)

5. Respond “Thank you for your email. 
Unfortunately, we regret to inform you that we are unable to match the price. Our price quoted covers our labor cost as well as the use of our highest quality ingredients. We hope you understand.”

6. Choose not to serve them. Why?
– They don’t appreciate your work or your worth. You charge what you charge for a reason. 
– Do you really want to deal with a client like that? 
– Know your worth.

7. If someone says they know someone who will do it for less, in many cases, they are lying and just trying to find anyone to do it for cheaper.

8. If you do it for one, you must do it for all because the customer will tell everyone.

9. Share with them three price points along with three options to match the price points you provide to them. Offer an amazing WOW price, a good cool price, and a cupcake option. Include a short to-the-point breakdown, so they can see the “cost” of the baked item verses the labor.

10. Price reflects ingredient costs, overhead costs, and a livable hourly wage for your time. Don’t go lower, as that would cheat you and your employees from being paid properly for our time. If you’d like to book your cake with us, it will be the originally agreed upon price of $x, with half due now to hold your date. Let me know if you’d like to proceed. Otherwise, I wish you the best of luck with your event.

11. Ask for details first. Depending on the cake, prices vary per serving. Different cakes take different time and ingredients. Figure the amount of people and offer a size explaining the servings it offers and the price per serving. Draw up a sketch or find a similar picture of a cake online and send them to the client, then ask for their input.

12. “I’m so sorry the cake you requested doesn’t fit in your budget. I would be happy to offer less expensive alternatives if you are interested.” This clearly tells them they cannot get that specific cake for a lower price, but you are willing to work within their budget.