1. Week 3 - Pricing
Business Boot Camp Week 3 of 8
Getting your pricing correct is often the difference between success and failure.
Follow David and create a systemtic approach to your pricing and also ensure that you are pricing to make a profit.
This lesson will challenge a number of issues so be prepared to let go of any systems or pricing approaches that are no longer fit for purpose as you plan to achieve your key business objective and goals.
Extra Learning:
Martin Robertson – Chartered Accountant and Business Coach – Knowing Your Numbers – PART 1 & Part 2
Nicholas Lodge – Pricing Sugar Flowers – See Lesson 2 below
Homework
Complete the following spreadsheets (links below)
- Identify all your Running(administrative) costs
- Start to complete the Capacity Planner and add every cake you make from now on
- Create a CashFlow Forecast for your business
Downloads
- Set up Costs – EXCEL Pdf Open Doc Format
- Running Costs – EXCEL Pdf Open Doc Format
- Accounts Summary – EXCEL Pdf Open Doc Format
- Capacity Planner – EXCEL Pdf Open Doc Format
- Wedding Cake Price Guide – EXCEL Pdf Open Doc Format
- Novelty Cake Price Guide – EXCEL Pdf Open Doc Format
- CashFlow Forecasting – EXCEL Pdf Open Doc Format
Wedding Price Guide explanation:
The price is made up from the size of tier (4″,6″,8″ etc) and the time taken to complete that tier, which is the Band rating. The Band rating will be determind by how much time or extra cost you decide that tier will take. In our example Band C are the quickest and easiet cakes to make, then B, then A being the most time consuming. You need to identify your prices based on your business and the mumbers discussed in the earlier spreadsheets. Note that the price was the same regardless of the type of cake or filling chosen with our wedding cakes.
Novelty Price Guide explanation:
The row showing 1.5, 2 etc relates to the number of hours estimated to decorate the cake. The designer should add the price against the size of cake from the columns above with the price given below the estimated time to get the total price for the cake. We had a separate fruit cake and sponge cake guide for Novelty cakes du eto smaller profit margins.
Pricing Summary
Know your:
- Running costs
- How many hours are you willing to work
- Gross profit per hour (cost of cake minus ingredients, divided by hours taken)
How to make more Profit:
- Reduce costs
- Improve speed
- Create faster designs
- Increase your prices
2. Pricing Sugar Flowers with Nicholas Lodge
Join Chef Nicholas Lodge as he gives some great examples of how to price flowers, but also some amazing business hints and tips.
Flower Pricing DOWNLOAD NOTES
