Are you pricing your baked goods too low? I was!!
We bakers do this for several reasons...we are kind hearted, we want to provide for others, we are not super confident our baked goods justify a high price tag, etc,. etc.
Whatever the reason, its important to not price too low! You'll run the risk of burning out and quitting entirely.
If you aren't sure if you are priced appropriately, click here for my free pricing formula.
And if you ARE priced too low, here are the steps I took to increase my own prices.
Tip One: I Used Open Communication
I sent an email to my customers and I used my Instagram stories to announce to customers that I had adjusted my prices and to look for an email that had been sent to them.
Tip Two: I Was Honest
In my email communication, I used honesty to share that my business had grown and that I was so grateful for their support during my beginning stages. By sharing that my business had grown, I inadvertently increased confidence in my brand, in me, in my value, and in my business.
Tip Three: I Emphasized the Quality of My Products
I also emphasized that the growth of my business and the increase in orders had led to a secondary benefit of an increase in my skill set! Woo hoo! I shared new techniques, flavor combinations, and more that they could now look forward to.
Tip Four: I Brought Light to Lower Priced Options
I shed light on lower priced items that would be available, such as my cake slices, that could be purchased instead of a full-sized cake, a 6 pack of cupcakes rather than a dozen, bread bowls instead of a full loaf of sourdough bread….anything really that I had on my menu that provided a options for everyone.
Tip Five: I Offered a Coupon Code for Existing Customers
Finally, I included a coupon code in my email to existing customers. I made sure to announce this as well in my Instagram stories and I thanked everyone for supporting me. This allowed me to help current customers offset the increased cost of my baked goods while valuing them as a loyal customer at the same time.
Conclusion
Simple guys, don't be afraid of raising your prices! Don’t apologize for the increase and don’t overexplain. Be confident in your announcement and your messaging… I can assure you that it will be a great step toward helping current and potential customers see you as a serious and reputable business.
I’ve included a sample Instagram/Social Media announcement below. Happy baking, my friends.
Sample Instagram Announcement: Hello Friends, Please note that effective XXXX, I will be increasing my prices to more appropriately reflect the current cost of ingredients, my updated menu items, as well as specialty techniques I am now offering. An email has been sent to everyone on my email list with further information as well as a coupon code for current customers that can be used on future orders. Please feel free to reach out to me if you did not receive the email. Finally, thank you all for supporting me as well as helping me spread the word about my cottage bakery. It is because of YOU that my business has grown so quickly and you are greatly appreciated.