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amariefen
Newbie
Joined: May 03, 2005
Posts: 11
Location: Central Indiana
Birthday: Feb 13
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 Posted:
Tue Jun 24, 2008 6:13 am |
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I was wondering for those who own their own business how the economy, gas prices and flooding has effected your businesses?
Has your prices for the product and delivery increased? Has your profits dropped at all? |
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indydebi
Forum SuperStar!
Joined: Jul 07, 2006
Posts: 13643
Location: Indianapolis IN
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Tue Jun 24, 2008 6:27 am |
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My sales are 142% of what I did all of last year ... and it's only June.
There's an economy problem? 
No, seriously, I think I'm in the perfect position by being a "you don't have to cater it expensive" type of business. Those who are cutting back, are cutting back by calling me instead of the big expensive caterers and the big expensive hotels. I'm not the cheapest cake in town ... and I'm not the most expensive either. |
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loriemoms
Forum SuperStar!
Joined: Nov 09, 2005
Posts: 2234
Location: Cary, North Carolina
Birthday: Feb 12
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Wed Jun 25, 2008 5:24 pm |
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I agree, I see a lot of brides are booking WAY ahead of time (I am getting a ton of calls for NEXT June!) because they know prices will go up and trying to jump on this years prices. But people are still buying plenty of cake!!!
I have noticed people are charging to their credit card a lot more then paying with a check or cash..
Now, the economy is affecting my bottom line..I have been spending more time trying to find other avenues for supplies, as many deliveries now have surcharges from the trucking companies... |
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indydebi
Forum SuperStar!
Joined: Jul 07, 2006
Posts: 13643
Location: Indianapolis IN
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Wed Jun 25, 2008 5:42 pm |
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| loriemoms wrote: | | I have noticed people are charging to their credit card a lot more then paying with a check or cash... |
Statistically, people will spend about 15-28% more if they use a credit card than if they spend cash/check, so credit cards are a GOOD thing, if you're the merchant!  |
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Cakery
Regular Member
Joined: Dec 17, 2006
Posts: 131
Location: Farmington, Missouri
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Wed Jun 25, 2008 6:33 pm |
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My business has almost doubled from last year...no signs of slowing down for me anyways....and as mentioned....I've gotten 3 calls this past week to book for next June. Already have 3 booked for next May. I have even raised my prices on per slice and my sheet cakes....no one is blinking an eye. So...to answer your question....business for me is good...even with the talk of the economy. |
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poshcakedesigns
Frequent Member
Joined: Jan 15, 2008
Posts: 441
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Thu Jun 26, 2008 8:14 am |
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Business has been good for me. I too seem to be getting a lot of bookings for 2009.
My birthday cake orders have slowed down a bit but the brides are picking up the difference.
I'd rather do a wedding cake anyways - more $$$$ for me. |
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moreCakePlz
Forum Addict
Joined: Dec 28, 2007
Posts: 642
Location: New Orleans
Birthday: Dec 27
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Thu Jun 26, 2008 10:01 am |
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I just make cakes for fun, but I’m finding that more of my “friends & family” are asking me to make cakes/cookies/desserts for their events. Just yesterday my sister-in-law asked me to make a cake for her best friend’s baby shower. Normally she would order from a bakery, but she said her electric bill went up $275 in one month and she didn’t have the extra cash to spend on a fancy cake. |
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Jenn123
Forum Fanatic
Joined: Aug 14, 2005
Posts: 1631
Location: Georgia
Birthday: Dec 29
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Sat Jun 28, 2008 3:17 pm |
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In my 20+ years of experience, people spend more on special occasions when they are in a money crunch. They spend so much time conserving money all the time that when there is a birthday or wedding, they want to have a special treat. I've always done better when the economy is down. |
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Monkess
Regular Member
Joined: Feb 25, 2008
Posts: 114
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Sun Jun 29, 2008 3:38 pm |
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I agree with Jenn above. I recently raised our prices and other than the odd one or two no one even noticed. Nonetheless, with reports of gas prices doubling next year, the worse might be still to come. Having said that though, as DH says its going to hurt alot of bigger businesses before it hits the small ones. |
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Mamas
Frequent Member
Joined: Apr 13, 2006
Posts: 310
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Sun Jun 29, 2008 4:10 pm |
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I raised my prices twice this year and increased my minimum purchase amount. I was a nervous wreck after each increase. I was hemmin and hawin and wringing my hands because I was terrified this would mark the beginning of the end but to my surprise sales are up instead of down.
My hubby says it is because people are staying home and entertaining more at home. I am shocked because I consider cake a luxory item and figured it would be the first thing to go when things get tight. Whatever the reason i am now looking foward to the holiday season if things keep going at this rate it might be the best one we have seen so far.
Indy how on earth do you keep such a close watch on things? Impressive! Do tell . . . |
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indydebi
Forum SuperStar!
Joined: Jul 07, 2006
Posts: 13643
Location: Indianapolis IN
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Sun Jun 29, 2008 4:22 pm |
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| Mamas wrote: | | Indy how on earth do you keep such a close watch on things? Impressive! Do tell . . . |
I'm a numbers geek with an analytical mind. "Debi Does Data". I tell people "Give me a spreadsheet and within 30 minutes I'll be able to tell you the color of socks the guy was wearing when he created it." My ideal job would have been to be an insurance actuarian .... nothing but number analyzation all day long! Now THAT'S hog-heaven to me! |
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apetricek
Regular Member
Joined: Jul 27, 2007
Posts: 128
Location: PA
Birthday: Sep 12
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Sun Jun 29, 2008 4:39 pm |
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My orders have gone up significantly....I am way busier now at this time of year than last year. It hasn't been an issue yet for me, but I know I am posting on my website this week, that prices will be increasing, so we will see how that goes... |
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Mamas
Frequent Member
Joined: Apr 13, 2006
Posts: 310
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Sun Jun 29, 2008 7:50 pm |
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| indydebi wrote: | | Mamas wrote: | | Indy how on earth do you keep such a close watch on things? Impressive! Do tell . . . |
I'm a numbers geek with an analytical mind. "Debi Does Data". I tell people "Give me a spreadsheet and within 30 minutes I'll be able to tell you the color of socks the guy was wearing when he created it." My ideal job would have been to be an insurance actuarian .... nothing but number analyzation all day long! Now THAT'S hog-heaven to me! |
This is the part of the business that I do not relish. I know that it will ultimately be the death of me if I don't get a handle on it. I should know what my year to date sales were for every month so that I can compare. I should also know by what percentage the cost of my ingredients have risen so that I can acurately raise prices to compensate. I have raised prices twice and I am still not sure that I have covered myself.
Do you have formulas or spread sheets or something for those of us that are not mathematically inclined that you would be willing to share? |
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indydebi
Forum SuperStar!
Joined: Jul 07, 2006
Posts: 13643
Location: Indianapolis IN
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Sun Jun 29, 2008 8:14 pm |
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Oh mamas, I'm more than happy to share what I have, but I'd be afraid to! You'd run away scared!! 
You know that one commercial where the girl holds up this HUGE honkin' print out and says "I make my own spreadsheets"? That's kinda what mine are like!  But it works for me!
Here's a small example for eggs. First two columns are date and price. "Diff" is the difference in price between the last two purchases. then the % of increase between the last two purchases. Running Increase is a running total of how much they have gone up between first-ever purchase and most recent purchase. Running % is the percentage of increase between first-ever purchase and most recent purchase.
Eggs...............Price..........Diff.........% incr......run incr.......run %
5/14/2008.......$17.85
6/4/2008.........$19.22.......$1.370......7.7%.......$1.370
6/11/2008.......$21.08.......$1.860......9.7%.......$3.230.........18.1%
I keep a very large spreadsheet on every item I've ever purchased, including stock number, size (ounces, servings, etc....depending on how I measure the price). Right now it's about 30 columns by 350 rows.
It's formula driven to show me the price per serving or per ounce or per packet, plus formula driven to apply my desired margin and compute what the selling price should be, plus columns on the pricing history and dates. Example: Crisco is set up with price-per-cup, enabling me to apply a price-per-cup to the recipes to determine my cost per dozen cookies.
With everything on one sheet, it's easy for me to price-negotiate when I have the GFS or the Sysco sales rep sitting in front of me. "I can get it at *** for $xx.xx. You've got to meet it or beat it if you want me to buy it."
On my sales spreadsheet, I have a page for sales data /invoices, then this info automatically transfers to the page that computes my sales tax, then all of this automatically transfers to the page where I have it graphed for the past 5 years, showing me sales trends. I have it formula driven so I enter one number and it updates 3 pages.
(oh geesh this got long! TOLD ya I was a numbers geek!) |
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poshcakedesigns
Frequent Member
Joined: Jan 15, 2008
Posts: 441
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Mon Jun 30, 2008 6:49 am |
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oh Indydeb I got tired just reading that process, I couldn't image doing it. LOL.
I've got to get more organized with keeping up with my cost. You so inspire me |
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