17/02/2023
Time for NO SUGARCOAT FRIDAY again
This comment was posted on my reel about what bakers need to stop doing in 2023. For some reason, it reached the US and now I’m getting some “interesting” comments. While I understand the sentiment behind this idea, I mean you do you, but as small business owners, we need to be compensated for our time and talent. I would like to address some of her points separately. It was automatically hidden by FB’s moderation assistant feature for containing inappropriate language and you won’t see it so, I took a screenshot. This is gonna be long so bear with me, this needs to be said and it’s today so there’s that. Mahaba ‘to, read with feelings, char.
Let’s break it down:
1. “I may undercharge or give something away, but I have some of the best and most loyal clients”
Real talk: We can ALL say we have the best and most loyal clients. I do, the next baker does, and so on. You know what the best clients do? Wish us the best for our business and support us by seeing the value of our time and hard work. A good client will not demand or accept freebies because they know it will cost us and slash off from our small business’ income. A good client will not demand for free delivery because they know gas prices have skyrocketed and we are ALL affected by it.
2. “I’m not Walmart and I’m proud that I have the choice to work with and accommodate low income people”
Real talk: This reminds me of the “I’m proud I don’t have to wear makeup or dress to look good” comment on my video about looking presentable. First of all, Walmart has some of the lowest-priced cakes in the market, using the cheapest ingredients in order to make some profit. Are their cakes their main source of income? No, probably not even 5%. For a small business owner like many of us, it is our only livelihood. This is why the support local and support small businesses campaigns started. A custom cake from a small business costs more, why? Because it’s a small business and it’s custom. We don’t get discounted rates on our ingredients, we don’t have 20 staff members for volume production, we are a baker, photographer, cleaner, marketing assistant, accountant, engineer, carpenter, driver, videographer, production assistant, social media manager, secretary, all rolled into ONE. All businesses have different target markets. If this is how you want to run your business, that’s okay but not everyone can afford to do that. You made the choice to target that demographic, that doesn’t mean we all should do the same. I make premium, bespoke, unique cakes made with the best-quality ingredients for each client. My clientele are people who are willing to pay a premium price for a premium cake. Different target markets. I don’t go into an Hermés store because I can’t afford to shop there, and they will definitely not lower their prices so I can buy a handbag at MY budget. I’ll go where my budget allows me. I can’t force a business to sell cheap for me or understand my situation.
3. “A business can only thrive if you treat humans like humans…Walmart doesn’t care if your mom died and forgot to pay your cake, but a ‘good’ baker does.”
Real talk: Nobody is saying to treat customers inhumanely. No small business owner would run the risk of doing that. Small business owners are definitely so much more forgiving, understanding, considerate, caring, generous (too generous for our own good) people to their clients. Too much actually, we always get taken advantage of. If we want to make everyone happy and give away products for free, I’m more than happy to offer free delivery 30mins to two hours away when gas for my car becomes free. I would gladly give away an extra cake for free, when supplies and utilities to make that extra cake become free. Shell wouldn’t care if I told them the client can’t afford delivery therefore, they need to give me free gasoline. The grocery store wouldn’t care if I asked them for free sugar, butter, eggs and flour because the client has a lower or no cake budget. So then, who would shoulder all those costs for freebies and delivery? The baker. WE are also humans and deserve to be treated fairly. More than that, we are also consumers, like our customers. We buy from the same groceries, we are also affected by inflation, we have bills, we go through different human experiences just like everyone else.
4. “My favorite client going through some stuff couldn’t afford what she originally wanted. I let her pay what she could and call it good because you treat others how you want to be treated.”
Real talk: Good on you for doing that. However, treatment of others goes both ways. Small business owners are some of the biggest victims of some self-entitled customers and friends who will do anything to get something for free or at a discount, but will line up for the newest iPhone 14 Pro or buy an LV purse. We often get messages in our DMs with “HM?”, “Price?” “Loc?” without as much as a ‘Hi!’ or ‘Good morning!’ What happened to manners? We are not always treated like equals, “I’m paying you so I dictate the price, I say what you can and can’t do.” We often get berated and humiliated on social media if we commit even the smallest mistakes, or have a misunderstanding because one customer didn’t bother to read the terms and conditions, didn’t pay the deposit, was being difficult or cancelled last minute and demanded a refund. We often get compared to big name brands and our pricing questioned because the customer failed to understand that mass bakery production is not the same as a purely custom-made cake done by a mom of three, who had to juggle between keeping the house clean, watching over her kids, cooking for her family, and working on her business and stay up until the wee hours of the morning to finish a cake. We all have made considerations for clients multiple times for sure, and I have offered discounts to people who couldn’t afford my cake but whose only dream was to see my cake at their wedding. But guess what? Those are exceptional cases and should not be on a regular basis otherwise, my business will suffer and I won’t be able to afford anything or pay my staff, my dues, and I would have to close down eventually. Nobody is saying to not be generous or feel compassion, but selling a 6”or 8” cake for $9-10 with free cupcakes and delivery? That’s being way too generous, that’s a sure way to end your business the fastest. That also impacts the rest of the cake industry because customers now believe a whole cake should only cost $ 9 (P500) and if we charge more, they are being cheated. $ 9 (P500) won’t even cover for all the ingredients. What about labor costs? What about overhead? Packaging? What about the trips to the store to purchase materials? What about taxes and business permits? We always hear about the customer’s side of the story and their situation, but we don’t often hear about the small business owner’s side.
5. “Don’t forget that in this business, it’s you that they are buying.”
Real talk: No, no one is buying you, they are buying FROM you. That’s not the same. In this business, it’s the VALUE you offer, your TIME and TALENT they are paying for. You can say no if you think the exchange of goods/services they are asking is not fair for you.
- Time is NOT free. Every cake we make is time away from our families.
- Talent is NOT free. All those years honing our talent, to be good at what we do, did not come for free.
- Every gram of flour, sugar and butter we use on every cake is NOT free.
- That precious Kitchen Aid sitting on our counter was not free.
I am a business OWNER, no one is buying me.
This comment sounds like virtue signaling and it sends the wrong message. This is why I wrote this post. We need to support each other, this is not a “I’m better than you, I’m proud coz I’m doing good for others by charging low” community. It’s a business at the end of the day. If you want to give your time and money away for free, you can start a charity or call it for what it is, an expensive hobby. Many of my followers comment or send me messages feeling depressed and down because they feel like they’re not being compensated enough for their work, because many customers don’t understand how much hard work and effort it takes to make custom-decorated cakes.
IT TAKES A LOT.
Running a successful baking business is not just about creating delicious treats. It's also about managing finances, time, and resources. As small business owners, we often have to wear multiple hats to keep our operations smooth and sustainable. If we consistently undercharge our products and services, we will struggle to make a profit and ultimately end up with a failed business. People start a business to make profit, let’s not sugarcoat things.
Of course, there are times when it's appropriate to offer discounts or adjust pricing to accommodate special circumstances. However, we cannot make these adjustments for EVERY single customer, nor should we feel obligated or guilt-tripped to do so. We must be realistic about the value of our time, the costs of our ingredients, and the overhead expenses of running a business. Furthermore, if we consistently undercharge for our products and services, we risk devaluing the time and effort that goes into making our baked goods. By charging a fair price, we not only ensure that our business stays afloat, but we also communicate the value of our skills and expertise. Charging for your worth does not mean to charge the highest price. It’s based off of what would make your business and your life balanced, sustainable and profitable, getting compensated for your time and hard work, while making others happy with your creations.
In conclusion, I understand that as bakers, we want to make delicious treats accessible to everyone. However, we must also prioritize our own financial well-being and remember that our time and talent are valuable. By charging fair prices for our products and services, we can ensure that our businesses thrive and that we continue to provide high-quality baked goods to our customers.
Thank you for reading all the way to the end, and I hope this post helps you understand the importance of charging fair prices in the baking industry. You deserve it.
- Jamie
Ex-low charger, ex-free delivery driver, ex-free cupcake giver
