Just Sent A Quote For This Cake -Always Makes Me Nervous!

Decorating By Tellis12 Updated 5 Jun 2008 , 4:45pm by denette

Tellis12 Posted 3 Jun 2008 , 1:25pm
post #1 of 44

I'm just trying to start my business and I had a request for this cake. The one in the picture is a dummy that I designed with a specific girl in mind and she has now requested it for her graduation party. She wants it to feed 75 and I quoted her 168.75 for 6",9" and 12" tiers. I just feel like that's so much!
LL

43 replies
karensue Posted 3 Jun 2008 , 1:30pm
post #2 of 44

Not too much in my books. I would charge around $300-$325 if it was three tiers.

Tellis12 Posted 3 Jun 2008 , 2:40pm
post #3 of 44

Well she sent an email right back and didn't say anything about the price so I guess it's ok!

Auryn Posted 3 Jun 2008 , 3:26pm
post #4 of 44

I think thats a really great price
its about $2 a person- you cant even go out for ice cream on that anymore
plus its got all that work on it- the cap etc.

Congrats on getting the order icon_wink.gif

Batter-UpBakery Posted 3 Jun 2008 , 5:14pm
post #5 of 44

That is a goof price. Don't go any lower

preciouscakes Posted 3 Jun 2008 , 5:30pm
post #6 of 44

I agree your price is extremely competitive

cakesbycathy Posted 3 Jun 2008 , 6:44pm
post #7 of 44

I am making a 1st Communion cake to feed 75, using 6", 9" and 12" rounds and I charged $188.75

leily Posted 4 Jun 2008 , 2:36am
post #8 of 44

a 6-9-12 is 101 servings. 1x2x4 (I figure ALL of my cakes with this serving size, if they want bigger servings then they order more cake)

My base price would be $303.

Your price is only $1.67/serving.

chutzpah Posted 4 Jun 2008 , 4:56am
post #9 of 44

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!

Cakepro Posted 4 Jun 2008 , 5:08am
post #10 of 44
Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!




LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.

bigmama1961 Posted 4 Jun 2008 , 5:09am
post #11 of 44

WELL YOU WILL LEARN WHAT YOUR WORTH BEING YOU ARE NEW AT IT, LIVE BY THIS....A GOOD CAKE AREN'T CHEAP,AND CHEAP CAKES AREN'T GOOD.I GOT THIS FROM ANOTHER CCER DONT REMEMBER WHO BUT IT IS WISE. GOOD LUCK ON YOUR ORDER...

mjballinger Posted 4 Jun 2008 , 5:24am
post #12 of 44

I think your price is good. You could probably get more though! I just made a tiered cake that same size for my daughter's 1st grade picnic and a lady asked how much I would charge for it if I did sell cakes and I said probably 150. She told me I was a fool and she'd pay at least $300 for it if she had to buy it from a local baker. I'm not that good! And we don't live in an area where things are toooo expensive. I put about $60 into the cake, but I still have enough icing left to do another about the same size and the same with the fondant.
Don't sell yourself too short to start out with because then people will expect it.

Mamas Posted 4 Jun 2008 , 5:38am
post #13 of 44
Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!



LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.




I am a scratch baker and I have seen the cost of my ingredients rise dramatically. I typically charge $5/serving for a cake covered in fondont at minimum and add $1 or more depending on the level of difficulty.

I am not sure how you are able to do it either. I have to assume things aren't as pricy where you live.

Cakepro Posted 4 Jun 2008 , 5:47am
post #14 of 44
Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!



LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.



I am a scratch baker and I have seen the cost of my ingredients rise dramatically. I typically charge $5/serving for a cake covered in fondont at minimum and add $1 or more depending on the level of difficulty.

I am not sure how you are able to do it either. I have to assume things aren't as pricy where you live.




Even if I were to buy the most ridiculously expensive organic ingredients for cake and icing on this size cake, I wouldn't be out $165+, even with making a scratch white chocolate fondant. I, too, start at $5 per serving for fondant-covered cakes. I feel really badly for you if you live in an area where the cost of ingredients is that high! That's nuts.

Children Posted 4 Jun 2008 , 5:53am
post #15 of 44

I think that is a great price. I have the same problems with pricing cakes sometimes.....wondering if I am pricing them too high. Here is what I have discovered.....your time and skill it worth money. When you quote a person a price don't act whishy washy about it. Tell them the price as if it the most normal thing in the world and 9 times out of 10 they don't even blink at it. If you have the appearance of confidence they pick up on that and think nothing of the price. Sorry this is long...this is just my 2 cents worth. icon_smile.gif

Mamas Posted 4 Jun 2008 , 6:41am
post #16 of 44
Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!



LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.



I am a scratch baker and I have seen the cost of my ingredients rise dramatically. I typically charge $5/serving for a cake covered in fondont at minimum and add $1 or more depending on the level of difficulty.

I am not sure how you are able to do it either. I have to assume things aren't as pricy where you live.



Even if I were to buy the most ridiculously expensive organic ingredients for cake and icing on this size cake, I wouldn't be out $165+, even with making a scratch white chocolate fondant. I, too, start at $5 per serving for fondant-covered cakes. I feel really badly for you if you live in an area where the cost of ingredients is that high! That's nuts.





If you start at $5 a serving then why aren't you charging $375?

I don't just want to cover the cost of my ingredients. I want to make a profit. If the cost of my ingredients goes up it eats into my profit. Ofcourse the price you have set covers ingredients! But, ingredients are becoming quite expensive and if you don't raise prices to compensate for this you will end up giving your cake away.

Additionally, the cost of ingredients isn't the only thing to consider. I took an introductory course in Cost Economics a really really long time ago but the one thing I remember was the idea to include everything that goes into the making of a product and when they say everything they mean EVERYTHING. This includes things things you might not think of like transportation costs to pick up the ingredients, light, gas, dishwashing liquid, garbage bags, sponges, ect. all of these things are an expense you incur in the making of your cake and all these things begin to chip away at the money you earn for making your cake. Pennies add up! . . . and what about your time?

It wouldn't be worth it to me to bake at your prices. I was just wondering if things were different enough in your neck of the woods to support such a low price. I was hoping to learn something new. I know that in some places it isn't possible to set prices as high as you might in others.

edith123 Posted 4 Jun 2008 , 6:56am
post #17 of 44

Don't go any lower or she'll think you are desperate, Your price It's lower than any bakery and your work it's way to good, don't sell your self shorth,know your worth. thumbs_up.gif

lovely Posted 4 Jun 2008 , 7:54am
post #18 of 44
Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!



LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.



I am a scratch baker and I have seen the cost of my ingredients rise dramatically. I typically charge $5/serving for a cake covered in fondont at minimum and add $1 or more depending on the level of difficulty.

I am not sure how you are able to do it either. I have to assume things aren't as pricy where you live.



Even if I were to buy the most ridiculously expensive organic ingredients for cake and icing on this size cake, I wouldn't be out $165+, even with making a scratch white chocolate fondant. I, too, start at $5 per serving for fondant-covered cakes. I feel really badly for you if you live in an area where the cost of ingredients is that high! That's nuts.




If you start at $5 a serving then why aren't you charging $375?

I don't just want to cover the cost of my ingredients. I want to make a profit. If the cost of my ingredients goes up it eats into my profit. Ofcourse the price you have set covers ingredients! But, ingredients are becoming quite expensive and if you don't raise prices to compensate for this you will end up giving your cake away.

Additionally, the cost of ingredients isn't the only thing to consider. I took an introductory course in Cost Economics a really really long time ago but the one thing I remember was the idea to include everything that goes into the making of a product and when they say everything they mean EVERYTHING. This includes things things you might not think of like transportation costs to pick up the ingredients, light, gas, dishwashing liquid, garbage bags, sponges, ect. all of these things are an expense you incur in the making of your cake and all these things begin to chip away at the money you earn for making your cake. Pennies add up! . . . and what about your time?

It wouldn't be worth it to me to bake at your prices. I was just wondering if things were different enough in your neck of the woods to support such a low price. I was hoping to learn something new. I know that in some places it isn't possible to set prices as high as you might in others.






Thats what I was thinking Mama, the cost of time and electricity, the pans etc... Isn't that what is considered into the stick of butter thats delivered to the shops, the maker, the paker, the shipper, the seller.
Lovely cake by the way and worth the money you are asking.
Cheers
Leigh

Cakepro Posted 4 Jun 2008 , 12:19pm
post #19 of 44
Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by Mamas

Quote:
Originally Posted by Cakepro

Quote:
Originally Posted by chutzpah

Oh my goodness. How can you possibly break even at that price? No wonder she jumped all over it!



LOL, if you put 168.75 in ingredients into 6",9" and 12" tiers, someone should teach you how to shop.



I am a scratch baker and I have seen the cost of my ingredients rise dramatically. I typically charge $5/serving for a cake covered in fondont at minimum and add $1 or more depending on the level of difficulty.

I am not sure how you are able to do it either. I have to assume things aren't as pricy where you live.



Even if I were to buy the most ridiculously expensive organic ingredients for cake and icing on this size cake, I wouldn't be out $165+, even with making a scratch white chocolate fondant. I, too, start at $5 per serving for fondant-covered cakes. I feel really badly for you if you live in an area where the cost of ingredients is that high! That's nuts.





Quote:
Originally Posted by Mamas

If you start at $5 a serving then why aren't you charging $375?




Well, if you are asking ME, it's not my order. I would have charged more. I am not the original poster of this thread. I was just commenting on someone else's comment, actually.

Quote:
Originally Posted by Mamas

I don't just want to cover the cost of my ingredients. I want to make a profit. Additionally, the cost of ingredients isn't the only thing to consider.




Yes, of course (duh! LOL). That's the entire point of being in business. icon_smile.gif

patrincia Posted 4 Jun 2008 , 12:30pm
post #20 of 44

Wouldn't it be nice if Duff would start announcing the prices for his cakes on his show... that way customers would realize how much a decent cake by a high end bakery really costs... which would make the average cake designer's prices seem more reasonable (even at $5 a serving).

...just a though.

moxey2000 Posted 4 Jun 2008 , 12:42pm
post #21 of 44
Quote:
Originally Posted by patrincia

Wouldn't it be nice if Duff would start announcing the prices for his cakes on his show... that way customers would realize how much a decent cake by a high end bakery really costs... which would make the average cake designer's prices seem more reasonable (even at $5 a serving).

...just a though.




I agree....if you go to Duff's website you'll see that their "starting" price is $500! In other words, they don't make any cakes for less than $500. I know I've seen cakes on that show and I've thought that I can't believe someone is willing to pay $500, but I bet it was even more than that once all of the design elements were added on.

BTW, I'm paying $1 a pound for flour now, $3.60 a dozen for eggs, $3.45 lb for butter, $3.40 a gallon for milk. OMG where will it end?

FromScratch Posted 4 Jun 2008 , 12:45pm
post #22 of 44

I am pretty sure that Chutzpah was speaking of more than just ingredients.. she owns a shop so her ideas on breaking even are a bit different than the home baker, but they still apply. It costs me about $1/serving to make my cakes and that is going up everyday. With gas 8 cents shy of $4/gallon (as of yesterday) and the price of flour doubling.. it is costing more and more just to make the cakes. (and you'd be shocked to see what some of those ulta high end organic ingredients actually cost)

I think it's a good idea to encourage people to charge a decent amount for their cakes right off the bat. It's tough to raise your prices after the fact.

Do I think it's a good price? Depends on the train of thought. I think it's a steal as a customer and not high enough from the baker's standpoint. That cake is 90 servings.. more if you go by the Wilton charts.. she is charging $1.80-ish per serving. I don't know about you, but for the countless hours you put into a cake.. from planning to baking to decorating to cleaning up.. clearing a profit of less than $100 is certainly not my idea of breaking even either.

It's so easy in the beginning to see $170 for a cake and think wow.. I'm doing good here.. but the more you do it and the more you think about it.. you realize that you really aren't. You have to stop looking at it as "what would *I* pay for a cake" and start thinking about it as "what do I want to make for my time". You aren't buying this cake.. you are hoping that this cake will lead to more cakes that will pay your bills.

You already sent the quote and she accepted so you can't change it now, but take it as a lesson learned and know that it only gets easier from here. icon_smile.gif

KHalstead Posted 4 Jun 2008 , 12:52pm
post #23 of 44

I'm super cheap, but live in an area that won't support super high end stuff...but I'm more expensive than all the other bakers around. I charge $2.50/serv. for a tiered cake covered in fondant. I would also charge an extra 5-10 for the grad hat and at least a couple bucks for the sax. Even at my cheap prices...according to my chart that cake will serve 95 people!!! I would have charged at minimum $250.00 and yes it seems like a lot...but it's a LOT of work. My first wedding cake I sold for $140 bucks for 80 servings and I was like.....man I need to up my prices!!! You'll get bitter if you continue making cakes for way less than you SHOULD be charging!!! If they really want a high end product they will pay a high end price!!

Crazy-4-Cakes Posted 4 Jun 2008 , 1:12pm
post #24 of 44

I see threads like this all the time and I keep re-evaluating my prices. I am a home baker and taking in my food costs, supplies and a small amount for my labor I charge $2.25 per serving on a cake like this. I see from other CCers that this is really low! But then yesterday, I quoted this to a bride whose only desire was for a WOW cake to serve 400 people and she freaked out! Her caterer (sp) also offers cake and that person quoted her about $300 for a cake that size!
Thats less than $1 per serving, what am I to do?
I'm in process of renting a kitchen and getting licensed and that costs money. How can I compete?
I get what you are saying OP, how do you offer great WOW cakes when they want to pay for a grocery store sheet cake?

FromScratch Posted 4 Jun 2008 , 1:20pm
post #25 of 44

You send them to the grocery store for a sheet cake.. that's what you do. You don't compete with walmart cakes. They buy in bulk.. SUPER bulk.. and they aren't looking to make a huge profit on cakes.. their cakes are there you get you inside in hopes that you will realize that you need some milk.. oh.. and doesn't that cooler display look neat.. and oooooh.. I could totally use a new face cream.. (you see the thought process).

Even big bakeries who do a huge volume order in bulk and mostly bake from bulk mixes. Most caterers (not all) are looking at make profit on the food end more-so than the cake. You have to find your niche.. mine is 100% scratch baking using the best ingredients. You have to have a confidence that your product is teh BEST out there. If you believe in yourself.. others will too.

patrincia Posted 4 Jun 2008 , 1:26pm
post #26 of 44
Quote:
Originally Posted by crazyladi

Her caterer (sp) also offers cake and that person quoted her about $300 for a cake that size!




I would be inclined to ask her who her caterer was... I can't believe for a minute they would charge $300 for a cake that will serve 400 - that's just insane.

terrier Posted 4 Jun 2008 , 1:42pm
post #27 of 44

WOW! That is really a low prices....

let just say the cake will be about 5-15 hours of work... that will depend on baking time cooling time and humidity.
~ baking and cooling cakes
~ making icing
~ making filling
~ pre-piping decorations/ pre-making fondant/gum paste decorations
~ icing and filling cakes
~ cutting and measuring dowels
~ stacking and decorating cakes
~ gas for delivering cake

plus your ingredients

say your ingredients cost is 50.00...

dowels, cake boards, box, baking ingredients

so your total quote is $168.75

less ingredients $50.00 - $168.75 = $118.75
and say it takes you 5 hours baking, all your pre work, decorating
you are making = $23.75 an hour.

But if you run into any trouble... well less profit of you!

loriemoms Posted 4 Jun 2008 , 1:43pm
post #28 of 44

My DH has a degree in business and he told me that you should be charging at least 60-100 dollars an hour for a cake. You add up the ingredients, time, electric, pans, yada yada yada to create that total. If that cake only takes you 2 hours to make (including baking) then your price is ok. a lot of people forget the time involved in making a cake!

I wish our area would support 5 dollars a serving. Unfortantly, we have a lot of illegal home bakers in our area (which I don't understand, its so easy to get legal in NC!) who are charging 1 dollar a serving for a cake, and 2.50 for wedding cakes. (no, I am not charging that little!) I recently raised my prices because EVERYTHING is gotten so expensive and am pretty much leaning to total wedding business. (Its a shame, because i hear so many people tell me nobody makes really cool birthday cakes anymore..I want to tell them thats because everyone wants a cool cake for the walmart price!) Some of my birthday cakes would cost more then a wedding cake with all the detail work involved! Brides seem to reconize that the price of flour has gone up 172 percent in the last year, and they KNOW delivery has to go up because the price of gas. They are more wiling to pay the higher price for a beautiful cake.

It is very depressing to see how expensive everything has gotten...and scary!!

KHalstead Posted 4 Jun 2008 , 1:46pm
post #29 of 44

that caterer may be giving her a whopping deal because he's making his money elsewhere. I have a lady right here close to me (her and her DH own a restaurant)and she's started selling cakes. She sells a full sheet cake for $30.00 I thought surely her full sheet was like a 12x18 or something.....nope!! 4-9x13 cakes put together!!!!!!! How can I compete with that??????? I charge $65.00 for two 12x18's together...that's still smaller than what she's offering!! However, I have no trouble getting orders it seems. I stick to my prices now (learned that from indydebi THANK YOU!) you just have to believe YOU are worth that and eventually THEY will believe you're worth that!!!

Mamas Posted 4 Jun 2008 , 1:48pm
post #30 of 44

Cakepro . . . I see your "lol" and your smiley face and have to assume it is not your intent but you come off as very condescending. Comments such as "Someone should teach you how to shop" and "Duh" are disrespectful in their mildest interpretation.

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