Starting and running a cupcake business can be both exciting and daunting all at the same time.
One thing that can be quite uncomfortable at first is talking about money, this is very understandable and everyone will go through this stage. It can effect all new businesses especially if it’s your first time running a business and selling things for yourself.
Remember, the reason you’re running your own business is not only because you love doing it, but also to make money from doing what you love. If you do feel uncomfortable discussing money you must overcome it in order to move forward and become successful.
Here are some things that you can do to help overcome the fear of discussing money with your customers:
Start by working out how much you’re going to charge for your cupcakes and each specific amount (6,12,24) and have these prices clearly displayed on your website.
This is the easiest way to make yourself more comfortable about discussing money as the customer will already have seen the prices on your website and will already have an initial price for the cupcakes in mind.
How you interact with your cupcake customers is going to be a key factor in the success of your business.
Whether you’re running the business from home or from a shop, the way you speak to customers has to be high on your priority list of things to work on or develop.
Consider how you would like to be spoken to / treated if you were to order something over the phone. How would you like that conversation to go?
New to Taking Orders on the Phone?
If you’re new to having to speak to strangers and taking orders on the phone on a regular basis you may find it quite daunting and uncomfortable. This is quite understandable, however it’s something that you will have to overcome.
An issue that many new cupcake businesses encounter very soon into their venture is that their cupcakes aren’t priced correctly.
When this occurs it’s usually because businesses are underpricing their cupcakes rather than overpricing with the hope of selling more cakes.
Many think that because they’re starting a new business and want to get the first initial orders coming in, they must charge a cheaper price than they would like. This isn’t the case. You should be charging what your cakes are worth and what you deserve.
3 Reasons to NOT Under Price Your Cakes
The big problems with underpricing your cupcakes in the beginning are:
1. You won’t be making anywhere near as much profit as you should be, making it almost pointless to carry on taking orders if you’re only just managing to cover the cost of the ingredients.
2. If you start with a low price and have lots of customers, it’s going to be very hard to increase the price considerably all of a sudden. This means that you will have to slowly increase the price over a long period of time, meaning that you won’t be making the profit you should be for a very long time.
3. A cheap price tag won’t reflect the quality of your cupcakes, confusing your potential customers as to whether you are actually selling a high quality product or not!