This is the second of four consecutive articles about Omaha
wedding cake pricing.
In a minute I'm going to illustrate a real case study
based on only one of what are many reasons.
Due to my research for WeddingCake.org, this answer gives
you insight beyond the obvious and helps you realize most wedding cake
bakers are not out there purposely over charging you.
My point is, there are various ways and reasons bakers come
up with their particular wedding cake prices.
Instead of comparing two bakers in Omaha, I'm going to
use the larger wedding cake market of Dallas, Texas to demonstrate my point.
We compared two wedding cake bakeries with only one
expense; leasing rates.
Wedding cake baker
#1 is paying $3,500 per month for 4000 square feet and Baker #2 is paying
$8,000 per month for about the same square footage.
Who do you think
had the higher priced wedding cakes? Who do you think was making a larger
profit margin?
As it turns out, baker #2’s prices were 26% higher than
B/D #1. (e.g. A wedding cake that costs $500 at baker #1, cost $630 at baker #2.
Even at $130 less, baker #1 was surprisingly making 18% more profit.
So, who had the appearance
of gouging their brides?
We didn’t research other expenses, but it illustrates how
and why wedding cake bakers charge different prices for basically the same
wedding cake.
It isn’t that baker #2 is greedy; they simply have much
higher expenses and need to price their wedding cakes accordingly. In fact, you could make the case baker #2 was charging a lower price compared to what it cost them to make it.
In this case, “you usually get what you pay for” doesn’t
apply.
Both of the wedding cake bakers are very skilled craftspeople and
satisfy hundreds of brides every year. In addition, they both price their
wedding cakes fairly.
My example illustrates why you need take more into consideration than just the final price.
My example illustrates why you need take more into consideration than just the final price.
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