Cake! magazine by Australian Cake Decorating Network May 2014 | Page 94

10. What are your 3 top business tips?

Peggy: I would say it’s very important to keep creative and to develop your style, always learning and
using new techniques, you have to keep evolving in order to stay on top of your game, but equally be
very careful to stay true to your signature look and feel, don’t be tempted to imitate others. Choose your
target market carefully and then research them carefully, understand them.
Consistency of quality, behaviour and standards is essential to running a successful business.
Margie: Love many, trust few, always paddle your own canoe
Mignon: Know your market, you cant be all things to all people.
Have a point of difference and when that gets copied then get another one.
Have a financial plan that you make yourself accountable to.
Patricia: Know what you want & write them down in a list format. Pick the top 5 from the list, which
would be the highest priority… then make a plan to achieve them.
Schedule ‘Time’ to think. All of my greatest ideas, opportunities and business strategy
came on the day I took off to think. Run your own race. I found that comparing myself with other cake
decorators brings a lot of dissatisfactions. I have to learn to stop and concentrate on running my own
race and not worry what others are doing.
Faye: Look after your clients Stay cash positive and grow within your means Find your unique selling
point and use it to stand out from the crowd.

FROM THE EDITOR
Liz Wright
Owner and founder of Australian Cake Decorating Network

What are your 3 top business tips?
1) The only person you can trust in business is yourself. You know you'll never let yourself down or take
advantage of yourself under the guise of 'it's just business'. Trust in yourself that you can succeed!
2) Maintain a balance. Don't put so much energy into your business that you neglect other important
aspects of your life. Family is the most important thing in the world. So much more important than what
this cake decorator said about you or what that business is doing. Long after your cake order is finished (or in my case, after this magazine issue is released) my beautiful family will still be here!
3) Competition isn't a bad thing. Use it as an opportunity to analyse your own business, see the weaknesses in your business and the potential for improvement and growth. Having no competition means
you can get complacent. Having competition means you have to be always on your game and be looking for ways to improve your business and service. I think it all depends on how you view it. Use competition as your motivator for success!

5 Tips for
Profitable Pricing
by Michelle Green
The Business of Baking
www.thebizofbaking.com

For new business owners, pricing their creations can be one of the hardest skills to master.
Sure, you can add up the ingredients and the cost of the boards and dowels, but it's the profit
part of it which becomes a little harder to figure out. Often when giving a potential customer a
price we find ourselves feeling guilty, embarrassed, or not justified in asking the prices we are
asking.

Here are five tips to make pricing your creations a little bit easier:
• Do the cold, hard numbers: Knowing what it actually costs you to create something gives you the confidence to declare your prices loud and proud. You don't want to be losing money on orders, so if you've
worked out that a cake costs you $50 to produce, you'll be more confident about asking for more than that.
Even if you're not sure what your skill is worth, you'll be sure what your costs are worth.
• Go undercover: Check out what your competitor's prices are, and remember that your competitors may
be everything from other small home based decorators to places like supermarkets and bakeries found
in shopping centres. Take a good hard look at what products are available, how they compare to yours
and what people seem willing to pay for it. If your pricing structure is either way too low or way too high in
comparison, you need to either do the math again, or be prepared to educate your customers about your
prices.
• Double it: In the very early days of your business, there is no way you'll be truly aware of your costs,
especially your time. Whatever number appears in your head, double it to the customer. So as the customer is talking, if I'm thinking, “$100” then I would be saying “$200” to them. This one is scary to act on
(and requires a big deep breath when you do it), but when you haven't got a clear handle on your costing,
chances are you're forgetting a bunch of things and the price in your head is based on comfort level and
not facts. Doubling the number in your head is a, easy, quick way to ensure you're probably getting closer
to what your item is really costing you to produce. The better you get at pricing, the less you'll need to do
this – but it's a good way to build confidence and cover your costs. (It gets easier to do, I promise! The
first time is always the hardest.)
• The Get Out of Bed price: Once you've done some number crunching, you'll work out what you can
and can't afford to work for. For example, you'll soon figure out that cakes worth $50 aren't making you
back your money or time, but cakes worth $100 are. Make $100 your “get out of bed” price – the minimum
you're willing and able to get out of bed for. If orders are slim on the ground you might be tempted to go
below that price – but then remember how resentful you felt last time you worked for free (was it worth it?)
and you'll find the Get Out of Bed price is a good idea.
• Sorry Not Sorry: Don't apologise for your prices, ever. If you've done your math and your research, your
prices will reflect what you need to earn on that order to cover costs as well as a component which accounts for talent and skill. There will always be some customers who will be shocked at your pricing, or try
to tell you “it's just butter and sugar!” or who try to intimidate you into giving it to them for cheaper. That's
to be expected, but the last time I checked, cafes, restaurants and supermarkets won't let you negotiate
on your bill, nor do they spend time explaining why they charge w