http://www.cakecentral.com/modules.php?name=gallery&file=displayimage&pid=1292473

This is a 8" carrot cake I did for free for a friend at work. Another lady there loved it and asked me to make one for her daughter. She asked how much I would charge. Well, no one has ever paid me for a cake before so I wasn't really sure what to charge her so I just said $20.

Well, I did a Cost of Goods worksheet to see how much it cost just to make the cake. Turns out, with paper products included (cake circle and box) just to make the cake cost me $15 and some change! That means I am only making a little over $4 for make this cake! I am make 20% off this deal.

I am so new at this. I feel uncomfortable asking $30 because I don't have a ton of experience and it didn't seem all that hard to make the first cake. But it just seems silly to make a cake for so cheap. Is this how it works? Do I charge less now because I am learning and just take the hit until my work gets better or do I just jump out there and ask for a minimum of $XXX amount of dollars?

Yep, it's expensive, and most people don't realize how much so unless they total their costs like you did.

Here' an article you might find helpful:

http://www.cakeboss.com/PricingGuideline.aspx

Did you also include your electricity or gas to cook the cake? And how much are you worth per hour?

I would try to make atleast $10 on it even if you are new at it. You have to consider your time not just for the baking and decorating but also the grocery shopping, etc! You should charge them and not under charge them because when you get to a point where you think your work is good, their going to wonder why it was such a big jump in price. Then they will think your cheating them! Its really crazy! But if you dont let people walk all over you, you will feel much better about yourself. Believe me! Been there! Done that! And if they come back with the fact that they can get a cake at a grocery store cheaper tell them how their frozen, shipped to the store, thawed out and then they slap a can of premade icing out of lard on it! And their prices arent much cheaper!!!

Yes, sometimes when you actually add up the cost to make a cake.... it will blow you away! People don't have a clue what goes into our profession. Don't be afraid to charge, if they don't want to pay it, they go somewhere else. Your time is valuable.

Jen

Often newbies say they shouldn't charge as much until they get better at decorating. I say that's crazy! What you do as a beginner is heads and tails over what non-decorators can do. And they all go crazy over everything! "OH, THAT'S SO BEAUTIFUL!!!" Am I right?!! Go for it and charge them a fair price. You deserve it and improving as a decorator takes time and practice. You might as well get paid while you're doing it!!

what grammynan said! If you are not sure what to value your time at, then look at it from a business standpoint: If you had to hire someone to do this cake, what would you pay them per hour and what are the expenses involved in that? And not just the hourly pay ... the social security expense paid by the employer; the employment (also known as unemployment) tax paid by the employer; the workers' comp costs; the cost of the accountant who charges you to do the payroll each month; the time for your "bookkeeper" to figure payroll and send it to the accountant.

Charging someone $10/hour for your time just isn't going to cut it.

As someone else said in another thread: If you can find a doctor or an accountant, or a realtor, who charges less just because he/she is "new", then send me those names so I can get the same deal!