Indydebi, I agree with you 100% about the willingness of people to pay so much more for a factory processed dessert, verses our custom designed and baked ones.

I guess part of our job is to educate the client, which gets frustrating. As we all know the non-baker really has no idea what goes into our baked goods. The secret to success is finding the group of people that actually appreciate the quality of our products.

It doesn't help that we are living in the "supersized" times. We have friends that choose a restaurant by the portion sizes instead of the quality of the food. If they have a "doggy bag" walking out, they think it's 5 star It doesn't bother them that it was probably processed microwave quality food as long as their plates are towering with it

Oh well, go figure....I guess that's what makes life exciting

My "dummy" portion size models that I've made have really helped to make the client know exactly what I mean by servings. People are so visual it helps for them to actually see the serving of cake on a plate.

The willingness of people to pay high prices for frozen/thawed/reheated restaurant desserts while balking at paying for a custom baked and designed FRESH cake is baffling. Yet, we do it too... at least I do.

I went out for dinner this evening to a restaurant called Carino's, an Italian franchise similar to Olive Garden. I ordered dessert. Mascarpone Bread Pudding with caramel sauce and ice cream for $7.50. It was a 4"round x 3" high, plus the scoop of ice cream on top, beautifully presented with caramel sause zig-zagged across the plate. I have a very healthy appetite, but it was too big to finish, so I brought half home, minus the ice cream. I think their Tiramisu is about 4" x 4" x 3" ... supersized indeed. Both looked amazing, right in front of us on the table.

And that may be the difference. When people order a cake, in many cases they are looking at pictures or sketches for a hypothetical cake. And they have no idea what the serving sizes look like until they actually see them. For this reason, I have recently created individual serving size dummies patterned after something I saw here on CC. (Thanks to whoever posted the serving dummy picture in the galleries! )

Restaurants give a false idea of normal serving sizes, so people may expect our cake servings to be huge, too. And they can be huge, if the client is willing to pay the price.

My last post on this thread....I promise.

When a couple goes out for dessert and pays $3.99 or higher for a piece of cake or pie etc., I think they're o.k with it.

When we quote them $4.00 a serving for their 200 wedding guests, that's $800.00, how often do they "bye" dessert for 200 people? Probably just this one time in their life, I think that's the "sticker shock" we sometimes see in their eyes. It's not so much the price per serving that bothers them, it's the "total" price that gets them questioning "$800 for a cake?"

We deal with cakes all the time, I'm willing to put money on the argument that a young engaged couple has never bought a custom designed cake in their life until they get married.

I really want to tell all 15 of my nieces and nephews to log on to this site, so they can all appreciate the fact that I made all of their cakes for free as part of their gift. I doubt they realize how fortunate they are.

I have to say a BIG thanks to all that have participated in this thread. I value each and every one of your opinions. I love to see different points of views that way i can make a more rounded decision.
I guess i have come to realize that when i tally my costs + labor there is no way getting around the customer is going to pay BIG dollars for the cake. I won't apologize for it either. I refuse to do this for free, so i see no other option then to pay myself a fair wage and if they want the cake great if they don't well then goodbye. I guess time will tell wether or not they will pay my fees. My app't yesterday was cancelled and rescheduled for tomorrow. I'm interested to see how she will react when i tell her the cost.
I figure i can't compete with grocery stores, or really even the local bakery because they buy their stuff wholesale. I simply pay more for my product.
It is what it is..take it or leave it.
Again, thanks everyone.

UPdate...well, my friend came by and i quoted her on a stacked cake, 8" and 12" round...(2)6"smash cakes. Filled with white choco mousse, iced in buttercream. There will be a big number 1 ontop the cake with stars on wires coming out as well as 3D baby blocks spelling the birthday kids name. I told her i'd get back to her and i was glad i did. I really struggled as i figured out the costs. There were a few small things i didn't add in but overall most was accounted for. I was initally going to reduce my hourly wage but my mom talked me out of it. She said, "Suzanne, ask for what you want. What's the worst she can say." Then i remember all of your advise too. I was going to only tally up 1hrs work for all the gumpaste work..but then my husband said, "no, put at least two". So i did...When it was all said and done it came out to 120.00can. for the cake.

I called her up..gave her the price...and she placed the order. She said the price was fine since she would probably just go to the grocery store and have to pay 70.00 for a regular cake anyway. ;0)

Lesson...ask and you may just receive.!!!
I'm glad I'm getting the wage i wanted, getting paid for all the teadious gumpaste work etc...

Thanks to everyone I was able to get the courage to get what i deserve.

I know this price is high for our area but i guesss there ARE people willing to pay for cake art.

Thanks everyone.

Congratulations sweetcravings! I'm glad she placed the order, who knows, you may get some more orders from her guests at the party. Be sure to include some of your business cards for her to display near the cake

Good luck and happy baking

Post a pic of the cake when you're done!!

This has been such interesting reading. Indydeb--you give such great information and I love following your posts. My main focus is cookies but I do a lot of 6", double layered and torted little cakes for various charitable functions. They are iced with BC and have a lot of detail in fondant. People are beginning to ask me if I would do them for their personal events so I would love some help with what to charge. I also use the clear plastic covered carriers like Sams Club uses and they cost me .75 each. The detail includes things like big bows, floral fondant sprays, figures, etc.
How many servings would you consider a 6", 2 layer cake to have, and what should I be charging?
Thanks for your help.

I haven't read the whole thread, so sorry if I am repeating other people. I have also figured out what it costs me to make cakes, and I found out it costs me more in ingredients than it does to buy a grocery store cake. I am using butter and icing sugar and eggs and whatever. Not edible oil products, and I don't get wholesale or discount prices. So to me, $88 does not seem high at all. It is, unfortunately, another question as to whether you could sell that cake for that price in your market. However, assuming you make a delicious cake, there will be some people who will realize that the superior quality is worth it. You said you never really charged (like me), but I bet people have said things like "have you ever thought of selling cakes". Start answering by saying, "yes, but even if I sold this cake for, oh, $90, I wouldn't even be making minimum wage, and that's before insurance, licensing and capital costs of starting a business." At least then you are starting to educate them about the cost of making a cake, maybe they will appreciate it more when you do make a cake, and who knows, maybe you will find people saying that sure, they would pay that no problem.