Do you know how much your customers spent with you last year? For cake designers and bakers, understanding your average customer spend isn’t just a helpful figure—it’s a game-changing metric that can elevate your business strategy.
In this blog post, I’ll explain:
- what ‘average customer spend’ for cake designers means
- Why it’s critical for bespoke cake businesses, and
- How to use this metric to make impactful changes.
Whether you’re a wedding cake designer or a bespoke baker, these insights will help you work smarter, not harder.
What is ‘Average Customer Spend‘?
Average customer spend is the total revenue you’ve earned divided by the number of clients you’ve had in the period you are evaluating.
Here’s a simple formula: Total Revenue ÷ Total Number of Customers = Average Spend
For example, if you earned £30,000 last year from 50 clients, your average spend was £600 per customer. This figure gives you insight into the financial health of your cake business.
Why Average Customer Spend is Critical for Cake Designers
As a bespoke cake designer, you’re not competing on volume—you’re competing on value. Understanding your average customer spend helps you make smarter decisions about pricing, client targeting, and growth strategies. Here’s how:
1. Focus on Value Over Volume
It’s not about booking as many clients as possible—it’s about ensuring that each booking contributes meaningfully to your revenue and overall business goals. By strategically increasing your average customer spend, you can reduce the number of clients you work with while maintaining or even surpassing your current income.
This not only lightens your workload but also allows you to dedicate more time to creating exceptional designs, delivering an outstanding customer experience, and building your brand reputation. Quality over quantity becomes the cornerstone of a thriving, sustainable business.
2. Guide Your Pricing Strategy
Your average spend is a powerful indicator of whether your pricing reflects the true value of your work. For instance, if your average spend is £550 but your costs (time, materials, delivery, etc.) amount to £500, it’s clear your pricing needs adjustment.
Why? Because the £50 remaining isn’t pure profit—it’s meant to cover everything else that keeps your business running:
- Overheads like utilities, workspace, and insurance
- Reinvestment into growth (new tools, marketing, education)
- Your own salary for the expertise and artistry you bring to the table
If your profit margin is too slim, you risk undervaluing your work, overworking yourself, or even operating at a loss. By regularly comparing your average spend to your costs, you can ensure your pricing allows your business to grow sustainably without compromise.
3. Attract High-Value Clients
Knowing your average spend doesn’t just show what clients are spending—it helps you understand who your ideal clients are. Are you attracting those who appreciate bespoke designs and are happy to invest in them? Or are your enquiries skewing toward price-sensitive customers who may not align with your brand’s vision?
With this insight, you can tailor your messaging, marketing, and offerings to appeal to high-value clients. This might mean showcasing the artistry behind your cakes, emphasizing the personalized service you provide, or highlighting your expertise in wedding cake design. These clients aren’t just willing to spend more—they also bring more satisfaction and alignment with your business goals.
4. Plan for Growth
Tracking your average spend year-on-year provides invaluable data about how your business is evolving. Is your average spend increasing, indicating that your pricing strategy and upselling efforts are working? Or has it plateaued, suggesting it’s time to reevaluate your offerings or marketing approach?
This metric allows you to plan strategically. For example, you might set a goal to increase your average spend by 10% next year, introduce premium offerings like luxury sugar flowers, or streamline your client base by implementing a minimum spend.
When you know where your business stands financially, you can make informed decisions that lead to sustainable growth and a more fulfilling workload.
Why Does Average Customer Spend Matter for Cake Designers?
As bespoke cake designers, we don’t churn out hundreds of cakes a year like mass-market bakeries. Instead, we focus on quality, customization, and artistry. Here’s why tracking average spend is essential:
How to Use Average Customer Spend in Your Cake Business
Here’s how you can calculate and apply this powerful metric to your bespoke cake business:
Step 1: Calculate Your Average Spend
- Add up your total revenue for the past year.
- Divide it by the number of clients you served.
- Use tools like spreadsheets or CRMs (e.g., Dubsado) to track this data easily.
Step 2: Analyze Your Data
Look at the trends:
- Which cakes or services drive higher spending?
- Are certain times of the year more profitable?
- Are clients with specific budgets more likely to book?
Step 3: Make Strategic Changes
- Upsell Premium Services: Offer upgrades like luxury sugar flowers, tiered dessert tables, or styled cake displays.
- Set a Minimum Spend: This ensures you attract high-value clients and reduces low-profit bookings.
- Refine Your Marketing: Target clients willing to invest in bespoke cakes through tailored messaging and visuals.
When Should You Review Your Average Spend?
Tracking your average customer spend isn’t a one-time task. Regular reviews help you stay on top of your pricing and profitability. Here’s when to check:
- Annually: At the end of each year, analyze your revenue and client data.
- During Pricing Reviews: Use it to assess whether your pricing reflects the value you provide.
- After Launching New Services: Check whether new offerings increase your average spending.
A Real-Life Example
When I started my cake business, I didn’t track metrics like average customer spend. My focus was solely on booking as many clients as possible. Over time, I realized this approach led to burnout and limited profit.
By analyzing my average spend and adjusting my pricing and offerings, I created a more profitable, sustainable business model. Today, I help other cake designers do the same through personalized coaching and my Flourish Cake School programme.
Take Action Today
Understanding your average customer spend is a simple but powerful way to elevate your cake business. Please take five minutes to calculate yours today, and reflect on what it tells you about your pricing, client base, and business strategy.
If you’re ready to dive deeper, I’m offering two exclusive 1-1 coaching spots this February. This is a chance to get my expert eyes on your business and uncover actionable strategies to improve your metrics, refine your pricing, and grow sustainably.
Together, we can:
- Analyze your numbers and set meaningful goals.
- Create a bespoke plan to attract high-value clients.
- Ensure your pricing reflects the artistry and value you provide.
[Click here to learn more about working with me]
Remember, it’s not about working harder but working smarter. By focusing on value over volume, you can create a profitable and fulfilling business.
leave a comment
Share to: