Pricing Your Cupcakes and Discussing Money

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:

Cupcake Prices

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.

Cupcake Delivery Prices

The next thing you will need to be comforatble with is discussing delivery prices. Again be prepared and work out roughly how much you are going to charge before hand. You could do this by charging by the mile or just have a standard delivery charge for specific areas.

The delivery charge is something that most customers won’t have a problem with, however if the delivery address is further than what you would normally deliver to don’t be afraid to quote a high price, the last thing you want to do is undercut yourself!

Optional Extra Prices

Extras such as gift tags and personalised decorations will also have to be charged extra for. The customer will know this so don’t be afraid to tell them.

A gift tag will have a standard price however personalised decorations may not. This can be quite tricky to quote for at first, just take into consideration the materials and the amount of time that it’s going to take to make what they’ve asked for then then price it accordingly.

Take Orders via Email

At first you could begin by taking most of your orders by email. It’s much easier to comfortably discuss orders via email as you have plenty of time to consider what you want to say and don’t have the pressure of making a quick decision. Get used to taking orders like this then you’ll have the confidence and experience ready to take orders on the phone or even face to face.

Hagglers

There may be times when a customer will try to haggle or barter with you and initially, when you’re first starting out this may be something that you can accept, but when you’re more established this isn’t something that you shouldn’t take lightly.

The only time this would be acceptable is if you are asked to produce a substantial order or you are dealing with a company that offers to promote your business in exchange for a reduced  price, however this will be down to your own discretion.

Believe in yourself and the service you’re offering, then think about how much that will be worth to someone else.

Once you’ve broken down the barrier stopping you from talking about money professionally then you will feel a lot more in control and confident in what you’re doing.

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