Hi everyone! I am new to the forum, and after reading many of the posts, I thought you might be able to help.
I started baking about a year ago for my daughter's school and for friends. One thing led to another, and I am now getting orders from strangers to make cakes, pies and cupcakes. Nothing real fancy. Just traditional cakes.
A local restaurant called and wants me to bring in samples of my desserts for their staff to taste. They are expanding and want to feature my desserts. I am thrilled, but have no idea how much to charge them. They say their mark-up is double or triple, and they want to sell a slice of cake for $3.50 to $4.00.
I make layered cakes, but usually charge people I know around $20 a cake. That won't work if I am making a lot!
ANY IDEAS???? I would be very grateful. Thanks.
P.S. What do you charge for a pie, and also for jumbo cupcakes?
I would figure out what price for your cakes you CAN live with, and then figure out what the per slice price is. I consider an 8" round to be 20 servings and I charge 20 dollars for it, so for me that's a dollar a slice. It costs me anywhere from 5-7 dollar to make and ice the cake, so thats a price I can live with and it's a price my customers are happy to pay as well, so it works for both of us. I wouldn't lower your prices to accomodate for THEIR mark up though if that's what you're thinking. do NOT do that.....if they can only sell it for twice what you sell it for then that's THEIR problem NOT YOURS!!
Are they going to cut the cakes in traditional wedding cake slices or the household triangle-pie-wedge shaped pieces? If it's pie-wedge, that's a MUCH bigger serving than Wilton or Earlene's chart.
They want to sell the cake for $4.00/slice. Let's assume pie-wedge. Let's assume 8" round. Let's assume 8 or 10 slices per cake. They plan to "sell" the cake for $32.00 to $40.00 .... so they are wanting to pay $18.00 to $20.00 per cake.
Are you willing to do that? Is their order volume large enough to justify a "wholesale" price to them? And this means that their order enables you to buy in higher volume so your supply costs are lower, and/or that you are able to work more efficiently so that your overhead costs are reduced.
As someone mentioned, don't lower your price to accommodate THEIR mark-up. As a caterer, there are LOTS of foods I can buy .... but if I buy the 1.5 ounce meatballs, they are going to cost me more than the 0.5 ounce meatball. I can't tell my supplier "I want to sell meatballs for this much money, and I want the higher quality one, so please adjust your price so that I am able to do this." Guess how loud they would laugh at me!
are you legal?
welcome to CC!
Welcome Sounds like great opportunity. I can sell from my home here in IA, but I can't sell cakes to restaurants to re-sell. It might be wise to look into that.