I posted a pic of my newest cake. This cake is a 10 inch and two 6 inch. BC iced with fondant accents, wire, edible image (blanked out). I am in the process of raising my prices. Wilton servings are what I am going to go by. According to that, this cake serves 52. I charged $50 for this cake. My new prices that I set at $2 per serving equate to $104. Is that too much for this cake? I know it varies everywhere but in general does this seem like too much to charge?
It seems like too much because you're probably still in the "birthday cakes are twenty bucks" mindset. Unless you're filthy rich, you're used to buying birthday cakes from the grocery store bakery, like the rest of us did before we started down the caking path!
People who always buy a used car cannot imagine ever paying $50,000 for a new car.
People who always eat at McD's for $6.00 cannot imagine ever paying $150 for dinner for two (we've done it ... and it was 20 years ago!).
$1/serving is not worth your time. Get that price up there where it belongs. Doing an order that puts you in the red is NOT better than not getting the order at all.
No kidding, I almost choked when I read "$50 for 50 servings." How much did your materials cost for that cake? How long did you work on it? $2 a serving is too low, in my opinion, but that might be what your market will bear, I don't know. It isn't too much, by any means.
Why don't you total up what you paid for ingredients, gumpaste, fondant, boards,etc., (Not to mention the cost of electricity to bake it!) then figure out how much your time was worth. You'll probably see that you're making $1.50 an hour at $1 a serving...Not worth turning the oven on!
sorry to say that if you charged 50 for a 52 piece cake you gave it away. Bringing up your prices is the only way to stop this. I'd even go 2.50 if you can in your area.
I realize you definitely have to work with the market you're in, but I wouldn't even get out of bed or turn on my oven for $2 a serving! But yes you should charge at LEAST that much, as a BASE price for a basic decorated with little-to-no "extras"