How Do You Decide On Base Price?

Decorating By AKA_cupcakeshoppe Updated 3 Apr 2008 , 2:10pm by AKA_cupcakeshoppe

AKA_cupcakeshoppe Posted 3 Apr 2008 , 12:55pm
post #1 of 4

I've noticed that most people have a base price like $3/serving for buttercream and $4/serving for fondant. How did you guys come up with that price? I mean even if the cake is different, it's the same price? But they'd have different ingredients like a chocolate cake wouldn't have as many different ingredients as, say, a carrot cake or a red velvet.

i'm kinda confused but at the same time intrigued by it... how did you come up with that price?

3 replies
foxymomma521 Posted 3 Apr 2008 , 1:09pm
post #2 of 4

The base price is usually for a basic cake and BC, I think red velvet, or something like a ganache is premium and costs more.

indydebi Posted 3 Apr 2008 , 1:23pm
post #3 of 4

Local pricing in your market is a big factor. If you bake from scratch or from a mix makes a difference.

I set my base price to cover "worst case scenario" .... if it's cheaper to make white cake than it is to make carrot cake, then I sell the white cake for the carrot cake price. One price for both. There are common expenses in both and the price covers this basic overhead cost.

It's like my choc covered strawberries. I know what they cost me in the winter .... I know what they cost me in the summer. I sell them based on my winter cost. I don't set a selling price based on my summer cost.

I have 3 buffets for clients to choose from..... 1 meat, 2 meats, 3 meats. Some meats cost me more, some cost me less. I set the buffet price based on "what if the client selected 2 of the most expensive?" If they select 2 inexpensive, then I"m money ahead and my overhead costs are covered.

AKA_cupcakeshoppe Posted 3 Apr 2008 , 2:10pm
post #4 of 4

that makes sense, indydebi.

i really want my pricing to be the same for basic flavors. i think i'm gonna work on that. and for premium flavors there's a different price too. that way i don't confuse myself or my customers.

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