Cake Deposits are AWESOME!! Why You Need Them in Your Cake Business
The customer has decided to work with you and wants you to create a custom cake. AND you are getting P.A.I.D.
And that’s what I’m talking about. I love making money in my business and I know you do too!
For some cake designers, asking for money can be a touchy subject, especially when it comes to requesting payment before even starting the cake. But let’s get one thing straight—cake decorating is not just a passion, it’s a business. And businesses run on money.
When I booked my first wedding cake order, I was OVER THE MOON EXCITED!! I know you know this feeling, it’s exhilarating!!
The credit card was swiped at the cake tasting, the order was in my calendar, and receiving the $225 (or so) for the cake deposit was the best feeling ever! My first customer believed in me and was confident that I could make the cake of their dreams.
I’ll be honest, I was pretty nervous of asking for a cake deposit from this customer. I actually knew this couple from my local area and I knew word of mouth would circulate when people found out I was working on their cake. But, I asked and they gladly paid.
In this post, I want to dive deep into cake deposits—what they are, why they are important, how to set them up, and best practices to ensure you are paid on time, every time. If you’re a cake designer struggling with deposits, this guide will help you become 100% crystal clear on how to handle them in your business.
1. REQUIRE BETWEEN 30% - 50% DEPOSIT FOR EVERY CAKE YOU SELL
One of the biggest mistakes new cake designers make is not requiring a deposit or asking for one that is too low. When I started my cake business, I accepted a 30% deposit for years. It wasn’t too high or too low—I thought it was a fair amount to secure a cake order. I didn’t want to scare my customers off or have them change their mind. Sound familiar?
However, as my cake business started to grow, I wanted more money in my cake bank account now instead of waiting until the month before. So, I raised my deposit to 50%. I did have the confidence of charging 30% for a few years, raising to 50% was a pretty easy jump for me.
Why is this important?
A deposit secures the order and ensures that the customer is serious about working with you.
It provides you with working capital to purchase ingredients and supplies in advance.
It protects your time in case a customer backs out at the last minute.
It discourages price shoppers who may book with multiple cake designers and then cancel later.
How to Decide on the Right Deposit Amount
50% is a fairly popular deposit amount for cake designers. If you feel uncomfortable charging that much right now, start with at least 30% and increase it over time as your confidence grows. Whatever percentage you choose, be confident when asking for it.
If you aren’t too sure about pricing your cakes and knowing how to quote your clients at your cake tastings, grab my free checklist here to help you price your cakes for profit!
2. REQUIRE THE REMAINING BALANCE AT LEAST 30 DAYS OUT
Some cake designers ask for the remaining balance two weeks out, but I strongly recommend requiring final payment at least 30 days before the event.
Why?
I start working on cake orders one month prior, purchasing ingredients, working on sugar flowers, and prepping decorations. I need to ensure that I’m getting paid before putting in all this effort.
Some clients will pay immediately at the 30-day mark, but others may need reminders. If you require final payment only two weeks before the event, you risk scrambling to collect your money while already deeply involved in cake order production.
If a client doesn’t pay at 30 days, you still have time to follow up and make a decision about canceling their order before it becomes a last-minute emergency.
What happens if they don’t pay on time? Some clients might need a little push, and that’s okay! They are too wrapped up in their party planning and their own life. I know you’ve been there and that’s where your customers may be as well. Send friendly but firm reminders leading up to the 30-day mark. If they don’t pay within the agreed timeframe, refer them back to your cake contract (which we’ll discuss in the next section).
3. PUT EVERYTHING IN A CONTRACT
If you don’t have a cake contract, let’s fix that ASAP! A contract is your best protection against disputes, last-minute cancellations, and non-payment. It is pretty normal to have a contract in service-based business. The contract is here to protect you and the customer just in case something happens.
What Should Be Included in Your Cake Contract?
Deposit amount and due date (e.g., "A 50% non-refundable deposit is required to secure your order.")
Final payment due date (e.g., "The remaining balance must be paid in full no later than 30 days before the event.")
Cancellation policy (e.g., "If final payment is not received by the due date, the order will be canceled and the deposit will not be refunded.")
Design details (e.g., flavor, size, design specifications, and any changes allowed before the due date.)
Pickup/delivery terms (e.g., "The cake must be picked up at the agreed time, or an additional storage fee may apply.")
Accidents (e.g. If something were to happen to you during the cake process or delivering the cake to the customer, the customer needs to be protected as well.)
Having a well-drafted contract eliminates misunderstandings and ensures both you and your client are on the same page. You can grab a professional cake contract template right here.
4. IF THEY DON’T PAY THEIR REMAINING BALANCE, CANCEL THE ORDER BY A CERTAIN DATE AND BE FIRM
Let’s be honest—some clients will ghost you when it’s time to pay their final balance. And that’s NOT okay, but it can happen.
What Should You Do?
If the client doesn’t pay you the remaining amount, let them know when their order will be officially canceled and stick to it. This date should be outlined in your contract.
Example email reminder:
"Hi [Client's Name],
Just a friendly reminder that your final balance for your cake order is due by [Final Payment Date]. As per our contract, failure to submit payment by this date will result in order cancellation. If you have any questions, please let me know!
Looking forward to bringing your cake vision to life!
Best, [Your Name]"
If they still don’t pay, cancel the order with no exceptions. This is business, baby! Not a fun cake hobby. Yes something could have happened to the customer. However, in this day and age where our phones are glued to our hand 24/7, if someone is ignoring you, it’s usually on purpose.
5. MAKE YOUR DEPOSIT NON-REFUNDABLE
This is a crucial step that many cake decorators overlook. Your cake deposit should be non-refundable! Why?
It compensates you for turning down other orders for that date. Some cake businesses have a maximum for how many cakes they can deliver in one day. If the customer cancels on you, at least you were paid for your time and you do not have to make a cake that day. Unless if you can squeeze in a customer at the last minute.
It protects you from last-minute cancellations that leave you with wasted time and ingredients.
It prevents clients from backing out and expecting a full refund after you’ve started planning their cake.
Make sure your clients know this from the beginning! Include it in your contract, mention it during consultations, read through the cake contract with the customer, and remind them when they submit their final deposit. Offering a non-refundable deposit is pretty standard within several industries, even the cake industry. Feel free to add this boundary to your cake business as well.
And if you are still attracting budget cake customers in your cake business? Let’s change that around! Click here to download my FREE eBook: 10 Strategies to Become an High-End Wedding Cake Business. It’s located inside my Cake Business Library.
Final Thoughts: Get Confident Asking for Deposits!
Asking for money upfront can feel uncomfortable at first, but it’s a crucial part of running a successful and sustainable cake business. Remember—you are not just selling a cake; you are providing a premium, custom service that requires time, skill, and dedication. Your expertise, creativity, and hard work deserve to be valued and compensated. By confidently requesting deposits, you set clear expectations with your clients while also protecting your business from last-minute cancellations and financial losses.
To recap:
✅ Require a 30-50% deposit for every cake order.
✅ Make the final payment due at least 30 days before the event.
✅ Put everything in a contract and require signatures.
✅ Cancel orders if payment isn’t received by the deadline.
✅ Make deposits non-refundable to protect your business.
Implementing these steps will help you establish trust with your clients, create a smooth payment process, and ensure that your cake business remains profitable and professional. The more confident you become in handling payments, the more respect you will earn from your clients. If you don’t have a cake contract yet, be sure to grab one below along with other valuable cake business resources to help you run your business like a pro.
How do you handle deposits in your cake business?
Do you have a different approach? I’d love to hear your thoughts—drop a comment below, and let’s chat!
