Pricing Question

Business By SweetOccasionCakes Updated 18 Mar 2008 , 6:13pm by teenycakes

SweetOccasionCakes Posted 15 Mar 2008 , 3:32pm
post #1 of 8

I am just starting out and selling cakes mostly to co-workers now. I am making a cake today for a one year party (the mom bought cupcakes at a store for the rest, go figure). It is a 6" double layer, no filling. It will have white bc icing with bc accents, nothing difficult. Since I work with her I was going to charge just over cost, wdyt? Also, I live in a SMALL town where people don't expect to pay a lot for cakes. Just wondering what your thoughts are on how much I should charge.

7 replies
kelleym Posted 15 Mar 2008 , 3:47pm
post #2 of 8

Have you figured out what your cost is? Remember that cost is more than just ingredients. Include gas for your car (you had to go shopping, right?), gas/electric for your oven/mixer, water and soap to wash your dishes afterwards.... it goes on and on. icon_biggrin.gif

Most people here will tell you that a 6" cake falls below their minimum order price, me included. My minimum order is $40, so that is what I would charge. If you've already told this lady you will charge her "just over" cost, then figure out your cost and add on what you feel comfortable with.

SweetOccasionCakes Posted 16 Mar 2008 , 12:32am
post #3 of 8

Here's a pic of the finished product. I ended up only doing one layer and it is all bc

[img]Image[/img]

indydebi Posted 16 Mar 2008 , 9:38pm
post #4 of 8

I'm glad to see it's just a one layer. I was trying to figure out how to do a 2-layer with no filling. icon_confused.gif

FromScratch Posted 17 Mar 2008 , 12:17am
post #5 of 8

If you ever hope to do this as a business don't do it "just for cost" now. If you start off selling cakes for dirt cheap you will get pigeon holed into being the cheap cake lady. People will resist you raising your prices because you have always done it much cheaper. The most important thing you need to make sure you are compensated for is your time. Above the ingredients and the gas for your car, your time is the most valuable.

Find out your state's regulations regarding baking for the public from your home. Many many states don't allow it and I'd hate to see anyone get in trouble.

Then sit down and figure out how much it costs you to make your recipes.. only then can you begin to think about pricing your cakes.

SweetOccasionCakes Posted 17 Mar 2008 , 1:24am
post #6 of 8

I have contacted the people I need to and will have my kitchen inspected shortly. Thanks for that advice though! Also, how would you suggest I go about setting pricing above cost on my cakes? I know what it will take me ingredient wise to do different cakes but how much should I expect over that? I have heard some say that they know what they want an hour per cake so should I set an hourly 'wage' for myself above cost? Just curious!

FromScratch Posted 17 Mar 2008 , 12:49pm
post #7 of 8

It really depends on your skill level. I am going to be brutally honest.. please don't take it the wrong way. You are not at a professional level yet, but I think you know that. You are off to a great start and you are definitely in the skill building/portfolio building phase of the game. I would let your customers know that you are just starting out and are looking to make cakes at a discounted rate. Start at $2.00/serving. I couldn't see doing it for less and still making a good enough profit. Be very clear from the get go that you are portfolio building and are doing it on the cheap and that when you get a point where you feel your skill level is where you want it to be that your prices will reflect that.

Do you have a serving chart that you are using? It will be important to find one you are comfortable with and stick with that one. Keep your prices the same across the board for wedding cakes and non-wedding cakes.. it makes it easier for you and your customers.

Hmmm... that's all I can think of right now, but if you have any other questions fire away.

teenycakes Posted 18 Mar 2008 , 6:13pm
post #8 of 8

I was wondering how much to charge for 6" double layer cakes.

A teacher at my daughter's school wants three 6" double layer cakes:

Red Velvet
Coconut
Chocolate

My costs are approximately $5 each, except for the Red Velvet which is $6. Any idea on how much to charge? Is it best to charge per serving? I think I'd want to use party size servings. LadyCakes.com indicates a 6" cake would serve 8 people.

Any advice would be appreciated.

The teacher has a brother who owns a cafe and they are trying my cakes to see if they want them in their cafe. I don't want to under price my cakes, they are delicious and made from scratch.

Thanks for your help icon_biggrin.gif

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