I am always asked by my co -workers, to make them cakes. I spend a day or 2 doing this, as I really love to do extensive decorating. Not to mention the normal expenses. But I never know how much to charge them. It ends up costing me. Any help on how to figure the cost? Thanks
You really need to sit down and figure ALL your costs for this. Every last ingredient, boards, foil, boxes, ribbon, electricity, gas (if you shop yourself/deliver), wear and tear on car and equipment, and, most importantly, TIME.
Honestly, if you don't figure your costs to the *T*, you end up continuing to undercharge for your work and become resentful and burned out.
Thanks for the info. I will need to figure what my time is worth I guess.. The supply cost is the easy part.
Time is where people usually short themselves. Consider what comes out of your "income" .... if you report the income, then you have to pay income taxes and social security taxes on it. So if you pay yourself only $10/hour, you're actually only making about $6-7/hour. And folks also forget to add in the time to talk to the bride, time to plan the cake, time to drive around and buy supples, to put them away, to clean up the mess, to deliver the cake ..... they tend to figure only the hands-on time, when they are actually touching the cake.