Why cake prices are ridiculously high online?
A quick comparison of price of cakes on the internet (make that including delivery and taxes), will show you that all of the sites that appear on the top of search results charge you 2 to 2.5 times the price that you would pay at a decent neighborhood bakery for a similar cake. A half kg chocolate cake costs you Rs 350 to Rs 400 at a JustBake or ChefBakers, but go online to indiatimes, indiacakes, sweetcherry and the rest, the prices are Rs 600 to Rs 1000/- inclusive of delivery. Wonder why? Here are the reasons.
– All of the sites that show up on the top results of google, spend a ton on money on advertising on Google. They need to recover it from somewhere and now you know who pays for it! Yeah, Google Search is free for the customer, but Google Advertising is not! It costs about Rs 200/- to Rs 400/- for online advertising to get one cake order. Google is definitely eating a piece of the cake 🙂
– Most of these vendors do not have their own bakeries and simply outsource the order to some local bakery, trying to maximize their margins. Given that they do not have their own bakeries, causes them to inflate prices to make a some money. Hence it is always best to check if the vendor has his own bakery, at least you will be ensured of a good quality cake.
– Most websites still target the gifting segment and want to maximize on the lack of choice from a gift-giver’s standpoint. They are never really about changing the way bakeries work. Not yet, at least! Hence charge a ridiculous price to make the gift-giver feel happy that he has purchased a good gift for his loved one. Sort of a dead-weight loss, if you know your economics well.
We at Warmoven want to be a true alternative to the neighborhood bakery and are conscious of our prices compared to the local bakery outlets. In fact, we want to change the way cakes are ordered and consumed, starting with Bangalore. Hence we offer free delivery as well, since we make up for the delivery costs with zero wastage of finished products. People are trying out warmoven and coming back repeatedly and recommending us to their friends. And we are happy :). Thank you for your business and we will continue to give you the best price and value for money