Hello could anyone kindly email me a spreadsheet that helps you work out the base cost of cakes and cupcakes. I have just started a little business and wanted to work if I am charging the correct amount for things. Thanks Cherie
In general, you would add up all the costs to produce your goods plus your desired profit, and that would be your price.
Cost of Ingredients + Cost of Labor + Cost of Utilities + Cost of Lease + Cost of Utensils/Equipment + Desired Profit = $price of goods
These are just some of the things to keep in mind when determining your price of goods. If your business was in a high traffic retail outlet, your rent costs would be very different from a person working out of their home, thus will affect how you price.
If you are running a business, you would also have to factor in legal fees, accountants, cleaning supplies, cleaning people, taxes, uniform, remodeling fund, advertising, paper, pencils, phone, gas, auto wear and tear,etc.
The market value of a good will also help in determining price. If no one is going to pay $10 for your cupcake, then you will have to lower your price, stop selling cupcakes, figure out a way to lower your cost of production, or figure out some way to get the public to perceive your cupcake is worth $10.
Always factor in any time you spend on the business, including prep, cleaning and browsing CC
Example (put in your own numbers):
If you sold a $50 cake each day, and it took you 8 hours to make it, thats $6.25 a hour. Happy with your wages? Now subtract all your costs. Still happy?
hope that helps
Hi Thanks for that info but there is a spreedsheet someone has put together so all you do is put in the cost of ingredients and then how much you use per cake and it works out the base cost of the cake. If anyone has it can you PM me with it? THANKS
i found this post on the business forum - Alice's Cake Pricing Matrix
once you go there, scroll down a few posts and there is a download link
That's an awesome link! Thanks for sending it!!
you need to buy cake boss it is well worth the price. you get a discount for being cake central member. It will calculate each order. I made a test customer, so I can price standard cake sizes, with icing, cake, box ect.
you can see price for each receipe.