282. Baking it Down - The Pricing Pumpkin
Send us Fan Mail 🎃 The Pricing Pumpkin - Stop being scared of profit In this week's Baking it Down Podcast - Episode 282 - The Profit Pumpkin, we are continuing to force the "scary Halloween-themed" podcast lineup, this time talking about things that scare off your profitability (pumpkins have nothing to do with it other than also starting with a "P"). 🎃 Fear of the Quote Something that's scary - especially if you're new or recently raised your prices - is sending that first quote. The fear of rejection or ghosting (heh - Halloween) is enough to barely squeak out a price that doesn't cover much profit in hopes it secures the sale. I mean, a business that doesn't make sales is a closed business, right? 🥧 We have some "pumpkin-spiced" suggestions for this. Have your website state your minimum cost per dozen based on your actual numbers, and know exactly what your break-even number is. This is the number that covers all of your costs (including time) without accounting for profit. Charging anything below this number is slowly putting you out of business because you're technically paying the client to order from you through your loss of income from the costs of production (aka making the order). 🎃 Haunted Chasing Payment We always suggest full payment at the time of booking, mostly so you're not chasing payment after the order is delivered. But there's a strategy behind offering partial payment or payment at pickup; if that's your business strategy, be prepared to chase. It can be scary to hand off hours of your hard-spent time and effort in a box of a dozen cookies, only to hope the client remembers their side of the bargain - cough up the cash. Our suggestion - brace for impact. You took the risk to secure the order, so budget for the ghosts, because it will happen. But good news - you'll likely have gotten more orders because you took the risk - so it all works out. If you keep gettin' burned, move to payment at booking. 🎃 The Quote Ghost Much like the fear of the quote, getting ghosted once you quote someone can suck - but it's just business; don't take it personally. In fact, I'm knee-deep in pitching the Vendy Blendy to some of the shops you suggested. Guess what - ghosted left and right, but that doesn't necessarily mean no (although it could, and that's fair), it could indicate I haven't explained this completely made-up event featuring made-up words in a way that gets the shops to see the potential for sales. Don't be afraid of the ghosted quote - and also don't be afraid of a few follow-ups until you earn the firm "no thank you" - it's a gift in disguise (heh - because Halloween). 🎃 Time Terrors Not accounting for labor costs can be one of the scariest threats to your bottom line. In fact, in the Profit Blueprint we're rolling out this month, we have a tab dedicated to seeing your profit % if you account for time and how bloated your profit appears if you don't. Time costs money, and not pricing with time in mind means you could be losing money on each order and not even know it - how scary. Snag this week's podcast to hear the other Sugar Scaries as well as snag the winner of the Artiste Mixer we're giving away to one person pending for the Vendy Blendy. 👂 Snag this podcast on any major podcast player (Spotify, Apple Music, Audible, Amazon Music, or watch it on YouTube) by searching for Baking it Down Podcast - Episode 282 - The Pricing Pumpkin.




