Comparing Pricing Question-Long

Business By shanasweets Updated 21 Jul 2008 , 2:07am by shanasweets

shanasweets Posted 19 Jul 2008 , 10:48am
post #1 of 4

I am wanting to legal when I start. I bought cake boss and have been putting in "test" cakes to figure of cost. I have downloaded a couple business here in ok and ks. (currently in ok, moving to ks).
problem is I can't see how they charge what they do and run a business.

my cost- single layer 9 x 13 w/ filling /buttercream 17.54
single layer 12 x 18 w filling/buttercream 57.28
8 in round 2 layer 21.71

I normally charge 25.00 for 8 in and 9 x 13, and 60 for 12 x 18

Other business
9 x 13 23-25.00 w/ filling and basic decorations
1/2 sheet 33-38
8 in 20-25

How do people charge this, now I realize this is probably basic decorations. but with extra cost of actually running, electric, lease, etc.
How does this work? I know I am paying for walmart prices or cake supply. I usually buy my fillings in sleeve, but cakes are doctored cake mixes, and usually scratch buttercream. I have tried buying buttercream from sams, but I am adding flavor and extra powder sugar, so cheaper but still about 2.00 pd. prices above reflect from scratch, butter and shortening. I have not even reflected my time in to these prices yet. I know I am new and not real quick.

Help enlighter how I can better be a business person. I plan to start at home, I can legally as long as I don't sell perishable items, then eventually plan to open coffee shop/bakery.

thanks for reading this winded question. Shana

3 replies
Mike1394 Posted 19 Jul 2008 , 11:17am
post #2 of 4

my cost- single layer 9 x 13 w/ filling /buttercream 17.54
single layer 12 x 18 w filling/buttercream 57.28
8 in round 2 layer 21.71

I normally charge 25.00 for 8 in and 9 x 13, and 60 for 12 x 18

I don't understand your costs here. Accordining to what your cost is your making 3.29 for an 8", and 2.72 for a 12x18, It appears your costs are out of line. How did you figure cost?


indydebi Posted 19 Jul 2008 , 11:42am
post #3 of 4

The difference may be in how you buy your supplies. If you buy flour in the 5 lb bags at walmart, your cost is about 20 cents to 25 cents a cup (I haven't checked it in awhile). But I buy flour in 50 lb bags and my cost is 10 cents a cup (Ahhhh.... I remember the good 'ole days of last year when it was less than 2 cents a cup!). A 6 lb an of crisco at walmart is almost $9, but the same can at sam's is under $7. This is a savings of about 20 cents a cup difference.

There is a HUGE price difference in eggs when you buy them a dozen at a time at the grocery ... or buy them 45 dozen at a time on a truck delivery like I do.

Just being able to buy items in a case or via truck deliver gets me cost savings. I can walk into a GFS store and buy one 1/2-pan-size aluminum lid for 79 cents .... or I can buy a case of them on my truckload for 19 cents each.

My cake supply store orders boxes in bulk for me, so I pay about 60 cents a box instead of retail of $1.15 a box.

I have a double convection oven in my shop .... I can bake 2 wedding cakes that serve 100 each in just one hour. In my home oven, this would take me 8-12 hours JUST in baking time = higher labor costs.

A little thing like having feet and feet of stainless steel counters sio I can decorate a cake, slide 'er down and decorate another ... assembly line production enables me to work faster and more efficient = lower labor costs.

Volume buying, mass baking, and assembly line production all contribute to the savings that can be achieved in a commercial environment vs. a home environment. The money from these kinds of savings is what pays the rent, utilities, comm'l veh insurance and all the other expenses of running a retail/commercial location business.

shanasweets Posted 21 Jul 2008 , 2:07am
post #4 of 4

well, I did mess up on my calculations for a 12 x 18, should have been 20.00 less. I had actually put labor into the program for this cake and none else. I use 3 cake receipes for this pan, that way I get a full cake. and I usually torte all my cakes including single layers and sheets.
I know making frosting from scratch as is more costly and I may not be calculating amount I am using right. I am experimenting using sams, no body has complained yet or even noticed a difference really. I only make cakes for coworkers and family. I do try to buy at Sams when possible and I emailed Dawn products inquiring about there products, but they haven't responded, quess I need to call them. I quess I just need to research more and see if I can buy boxes and such in more bulk than I do. I did figure cost for regular cookies and muffins and this worked out much better. Can easily sell them fairly reasonably, and they don't have decorating time, so less labor intensive. thanks for all they info and I would love any other tidbits to help. I can't wait to get my house sold, so we can move.

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