Nosy Question...

Decorating By knel Updated 2 Jun 2008 , 4:47am by dandelion56602

knel Posted 2 Jun 2008 , 3:17am
post #1 of 5

Wondering if anyone would share on average how much profit you try to make on each cake... (tiered cakes) Thanks!

4 replies
apetricek Posted 2 Jun 2008 , 3:31am
post #2 of 5

I usually double whatever it cost me. I know I have also been told by people for certain items, even triple it. I don't know if that helps or not, and of course unfortunatley you NEVER get paid for all your blood, sweat, and tears....

BrandisBaked Posted 2 Jun 2008 , 4:17am
post #3 of 5

I was taught in culinary school that food costs should be below 25% of your expense. If you're not charging enough, you're not going to cover for your time (or payroll, etc.) and overhead.

I cost out every recipe precisely, and know exactly what it costs me, so that I can charge accordingly.

indydebi Posted 2 Jun 2008 , 4:39am
post #4 of 5

Brandi touched on a very important point. your food costs are NOT your only expenses and they are actually a very small part of your expenses.

Your final price should also cover
- your vehicle expense
.........(licensing, commercial insurance, new tires, oil changes, car washes, and oh yeah... the gas),
- your insurance
.........(liablity insurance, property insurance on your equipment, workers comp insurance if you have employees);
- your rent on your shop;
- interest on your biz loans; payment on your biz loans
- cost of "free" samplings
- payroll; payroll taxes;
- accountant/lawyer fees;
- utilities - gas, elec, trash pickup, phone, fax, internet, cable, water/sewer, cable (yes, I HAVE to have TV in my kitchen or I'll go crazy!)

Plus all the other things that I can't think of right now .... BEFORE you ever mutter the word "profit".

dandelion56602 Posted 2 Jun 2008 , 4:47am
post #5 of 5

I had never heard about food costs being below 25%. It's always good to learn these things.

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