What am I forgetting? I listed out all my prices by unit and figured up the cost of doing a cupcake cake for a friend. She's requesting 35 cupcakes in the shape of Mickey Mouse. I figured cake mixes, eggs, butter, pudding, powdered sugar, cake board, cake box, cupcake liners...I didn't figure in water or the 6 TBSP or so of milk I expect to use in the icing (figured 3 batches - but I'll probably only use 2 - 2.5). Oil for the chocolate cakes?
The total was less than $17.00 - I was going to charge $35 - $1/cupcake - but I almost feel like that's too much! And if she weren't a friend I'd probably charge at least .50 cents more per cupcake.
Once you've figured the costing if you times everything by 1.2 then the 2% will account for anything you've missed, electricity, etc....
After that there is your time you should charge for, but if you're doing it for a friend and only want to charge ingredients that's up to you.
Time is the hardest to calculate because many decorators are hesitant to charge what they are actually worth. Here's how I got over that. I asked myself, "In a 'real' business, how much would my payroll be to pay an employee to do this work?" Then you HAVE to figure every minute of time involved in making that order because your employee would be on the clock the whole time.
YOu are worth as much or more than what you'd pay an employee.
Do you owe her a favor or want to be nice? Do it for free. She can't expect you to do that again.
Do you want to charge her for doing it? Charge her 35 bucks as long as you are prepared to do it at that price again and again. Otherwise, charge her like a stranger.
Renee
Thanks for the replies.
She's a new friend - and neighbor. I've been clear to all my friends (playgroup members actually) that I'm just getting back into this so I'm giving them a good discount for now. I have a little invoice book and I write their order up with the full price then give them a 'Mommy' discount (cause they're the Mommy's from my Mommy group). I figure that way they see the amount I discounted and can be prepared when I no longer discount.
When I'm more confident and ready to raise my prices I'll also let them all know. We keep in touch through a message board and I plan to give them a couple weeks to reserve dates and keep my current prices...which aren't exactly set, but have all been pretty close so far.
I hadn't really thought about time. I feel a little bad that I'm figuring for 3 cake mixes - because she wants 1/4 of the cupcakes chocolate - and I'll likely be able to keep/freeze almost a full batch of cupcakes - tho they'll be a mixture of yellow/chocolate.
Oh well - I'll send her the pricing. I have to go review my emails and make sure I didn't already mention a lower price first...
Hey Sun, I think that's a really good idea that you actually give them an invoice with the full price so they can see what a deal they are getting. I do this too when I give work colleagues a discount I ask them to tell people they paid the full price. Sometimes you are going to be left with left overs, there's not much you can do, when I do a carved cake if I get good solid blocks out of it I will give these as additional servings to the customer but sometimes you get awkward offcuts and that's the price the customer pays for requesting odd shapes or multiple flavours or orders that are not standard.
Good luck with it. 
Hey Sun, I think that's a really good idea that you actually give them an invoice with the full price so they can see what a deal they are getting. I do this too when I give work colleagues a discount I ask them to tell people they paid the full price. Sometimes you are going to be left with left overs, there's not much you can do, when I do a carved cake if I get good solid blocks out of it I will give these as additional servings to the customer but sometimes you get awkward offcuts and that's the price the customer pays for requesting odd shapes or multiple flavours or orders that are not standard.
Good luck with it.
It's called scrap factor and it needs to built into the cost of the product the same as your eggs and sugar.
I used to work for a powercord mf'g'r. To make a powercord, sometimes you have to strip the end of the cord off, so the jacketed copper wires are exposed (to enable hard wiring). We, the mfg'r, have to pay for that stripped rubber that ends up in the trash .... it's part of the cost of the product even tho' the customer does not receive it. Scrap Factor. It's a legitimate business expense and a raw materials cost.
The customer does not necessarily pay for what they RECEIVE .... they pay for the material REQUIRED to make the end-result product.
Indydebi, you're knowledge base is so phenomenal, I vote that we have a special thread called ASK INDYDEBI, your advice is always so helpful!! Thank you!
Ah shucks! That just shows that I have ya all snowed!
Thank you both!
I charged her $35 - but offered to do a small 6" cake with the extra batter to celebrate with her dd on her b-day. Unfortunately we didn't get on the same page regarding the extra cake until it was too late - so I took 6 additional cupcakes to her party for her.
I wasn't satisfied with how my cake turned out (I rarely am..and if *I* am I'm sure the customer won't be LOL). I had to freehand the character on top, and he turned out kind of a funny shape...and the top wasn't smooth since she requested buttercream & chocolate buttercream icing. Anyway - I was going to offer to take less. But she and her family started gushing over the cake as soon as I walked in - so I decided to keep my trap shut and collect my $35.
And on a side note - I love your replies debi - you have a way with words!
Do you have pics of your cupcakes? Would love to see them. : )
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