Raising Prices

Raising prices is sometimes a hard decision to make. You must factor in a lot of things like… will people still buy my product, what am I paying for it, and what am I making off of it, and how much should  I sell it for. Recently my bakery which is for sale decided that we should raise our prices again. They have been raised every year that I have worked here by the way.  So everything went up about one dollar. Now to some people a dollar raise is not that much but when you factor in that a 6 inch cake that serves 4-6 people is $16, that’s a lot! We already have extremely high prices. We are not competitive with other bakeries, we are higher that all of them. The owners also do not  know how much profit they are making off of their products. I know this because I asked everyone involved. I think we are now losing business at one of the busiest times of the year due to our price increase. They seem to think it’s the economy but I tend to disagree!