I have learned HUGE amounts from all my fellow cc'ers. I've been looking for the last year or so about what it would take to have my own business legally. I do get sticker shock when looking at price of my would be competition. I would NEVER PERSONALLY pay those prices. Heck, I didn't even like paying the prices for the less expensive choices - hence I went out and learned (something I always wanted to do). I've invested time and money and hard work into this hobby that I would love to turn pro eventually.
I was recently discussing pricing with my mother - who is extremely frugal. She was appalled at the pricing. I said "Mom, you are not my or their target clientele, heck I'm not even my target clientele." You have to keep in mind what you are offering and who your target audience is. My time is worth more than minimum wage.
JMO
Judi
o.k. I admit I haven't read the whole thread but hear is what I've been thinking:
I just made three, single, 7"x5" wedding cakes for a gal.
Ingredients:
-3 boxes cake------------------------3.75
-1 doz. eggs--------------------------1.25
-3 sm. boxes instant pudding------3.00
-3 cups oil----------------------------1.00
-9 large fresh lemons---------------3.00
-3 8oz. packages cream cheese---3.00
-7 lbs. pd. sugar---------------------9.00
- 3 T. vanilla---------------------------.50
-1 lb. butter---------------------------2.00
-made 100 white chocolate leaves--???
-cake boxes 1.00x3-------------------3.00
-3 10" cake drums--------------------6.00
-wrapping paper for drum------------1.00
-ribbon for edge of drum-------------1.00
-gas for picking up all supplies-------???
-electricity------------------------------???
-set up time----------------------------???
-baking time---------------------------???
-I had 3 7"x2" pans (had to bake twice to get 6)--???
-cooling time, wrapping, freezing,etc supplies...
-decorating time (I'm must be slow) AT LEAST 12 hours
-clean-up time--------------------------???
-let her use a three tiered stand------free
I'm sure I missed something. Anyway forgot to tell friend that I don't make any cake less than 50.00. Result she gets 3-7"x5" wedding cakes for a total of 108.00. I really told her I would make 6" cakes but they looked so small I made 7" cakes priced at 6" cakes. Bottom line-- 3.00 a serving (party serving) for original 6" cakes that serve 12 ea. Thats 36.00 a cake. I told her.
Never again will I forget the minimum I charge of 50.00 per cake!!! No mater the size.
-live and learn...
-I used to charge 1.50 per serving 1 year ago. 3.00 is sounding crazy now to, when I look at the itemized list, and think of my huge messes and time I spent.
Sorry sooo long!
Wow Coco...I think your post was a real eye-opener to the difference in cost of ingredients by area...you are paying WAY more than I do for the same ingredients... You are practically forced to charge more for the shear cost of your ingredients...
The total of the costs you did list is $37.50 and for me to use the same ingredients you listed above it would have only cost me $24.03. To some that might not seem like a big difference but that is A LOT over a year...
What a great example of why we can NOT all charge the same...Each area is different!
Tammi
So why charge anything at all then? If business is not the OP's intent, then isn't it charity?
You know very well that when money is exchanged then it is a business. We can't have it both ways............legally at least.
Am I wrong?
P.S. I disagree that this post is getting out of hand. It's a very civil debate
You're certainly not wrong when it comes to the legalities at all! But I've been trying to put that aside in my answers because clearly, the OP is not a licensed business and only does it on the side for friends & family. It's just that being legal and calling yourself a business is not really what this thread was about in the first place.
The OP simply stated that she would never pay that much for a cake and knows plenty of people in her area that feel the same way so if she makes cakes and gets a little cash from the cakes to buy herself a fun cake tool, she's happy. I just don't see why we should be trying to picture her as the bad guy for trying to help out some friends & family in her same situation. Clearly, if those people never have the means or intention of buying an "expensive" cake then she is not taking away from our business or stealing clients. Why take it any further than that?
Well, I'm definitely not picturing her as the bad guy, nor do I think anyone else is.
I know we think differently when we do this as a business, but I also think that most of us who do charge more then $2 per serving are tired of being "pictured as the bad guy". 
I'm still catching up on this one, page 4 I think but...
My average invoice for a wedding is almost double this year what it was last year. April is going to be a FIVE YEAR RECORD month in sales. My mantra is "Recession? Really? No ? Huh!"
"
Geez Indy, I love all your stats--would God I was that together~
I'd settle for half as together as you are. Would you believe a quarter???
When reading the OP's post her tone is that of "shame on all you who charge more than $2 per serving"
It was condescending to legit businesses, regardless of her comments of the fact that she isn't a business, but selling her cakes anyway for a few bucks and a new cake toy.
Indy, you're my cake idol - in fact, I use your BC recipe and round cutting method, and I've pm'd you before for advice! I do NOT want to be on your bad side! I'm feeling a little sick at my stomach now just reading your reply.
You're not on my bad side! I just tend to get my mom-finger going on a few topics that are passionate to me. And it's only because I've gone thru so much to get to this point, and it really really hurts me when I see someone who THINKS "I can't get what my work is worth".
The teacher salary difference is a good comparison but let's look at it slightly different. The new teacher doesn't make "Less" than the Masters Degree teacher .... the Masters Degree teacher makes "more" than the new teacher. Do you see the Big Difference? The new teacher isn't making "below standard". The new teacher IS making the market salary. And when she gets her Masters, she'll make more.
Some cakers think they have to make LESS because they're new. They don't make less than the Collette Peters of the world .... Collette makes more than the regular cakers of the world.
So if the industry standard is (let's get ridiculous just for example's sake) $20/serving, then charge $20/serving. When you get more known, more in demand, add more skills, then you can charge $30/serving. But don't start out charging $10/serving instead of the $20.
The original post was last night before bedtime, it's now the next afternoon. Just because the OP hasn't posted again in less than 24 hours is no reason to consider her a troll.
Perhaps she had something else to do today.
She's been here since December, with 77 posts, and 15 posted pictures. Not someone who joined yesterday just to make an upsetting post.
When reading the OP's post her tone is that of "shame on all you who charge more than $2 per serving"
It was condescending to legit businesses, regardless of her comments of the fact that she isn't a business, but selling her cakes anyway for a few bucks and a new cake toy.
I see what you're saying...I just didn't see it that way. I guess it all comes down to interpretation...
The original post was last night before bedtime, it's now the next afternoon. Just because the OP hasn't posted again in less than 24 hours is no reason to consider her a troll.
Perhaps she had something else to do today.
She's been here since December, with 77 posts, and 15 posted pictures. Not someone who joined yesterday just to make an upsetting post.
Definitely...
I am going to say something that is going to get me into trouble here, but I don't care.
Undercharging for your cakes is exactly what gives people like Bronwen Weber BS reasons to not support home baking bills. This is in line with the $20 Craig's List cakes. If you undercharge, you could drive down the price for everyone.
You need to charge what others in your area with your similar skills are charging, not low balling it because you feel "guilty" about it or whatever.
I can totally see what you are saying Stacey... a simpler BC cake is different than what I offer and I think that there is room in the market for both. I do offer a more budget version of cake... vanilla or chocolate filled with only BC, not torted and VERY simply decorated (read not really at all) starting at $3.75/serving. For those who want the taste but can't afford the outfit so to speak...
. The minute you want something different... fillings or a different type of cake... you get charged full price which is $5/serving. I certainly don't think that everyone should charge what I do, but it does kill me to hear that people are giving their work away. Our time is worth so much more than most give credit for.
I understand - that all makes a lot of sense!
but don't come on a cake forum trying to imply (which she blatently did) that others charging more are just gouging the public. Granted those weren't her words, but the implication of her post definitely states that she thinks it is unethical to charge more than she is charging.
I didn't really think that was what she meant - I think we are all just looking at the original post from very different perspectives! If I looked at it from that angle, I totally see how that could be offensive.
When reading the OP's post her tone is that of "shame on all you who charge more than $2 per serving"
It was condescending to legit businesses, regardless of her comments of the fact that she isn't a business, but selling her cakes anyway for a few bucks and a new cake toy.
her original post?
I have a hard time justifying pricing cakes at $2.00 per serving, because I wouldn't pay that. I recently started decorating and am good at it. I have people asking if I will bake a cake and what I will charge. When I look at the charts and come up with a price at the $2 price I think to myself "I wouldn't have paid that much last year for a cake from someone else" A few others I have talked to seem to think it seems high too. I have sold one cake, but other than that my cakes have been gifts. I have a couple of people asking me for pricing and am on the fence about what to charge. I did lose one order due to the price already (and I gave her a decent discount, I think I went with $1.50) Does anybody else feel this way? I just make cakes because I enjoy it. I have no intention of ever being a full time baker and this haggling over the price in my own mind is stealing my joy. I would be fine as long as my supplies were covered and maybe I got a little extra to buy a new cake tool....Thoughts? (please be nice you pros!)
I don't get that she's shaming those who charge more at all. She's talking about the struggle she has with herself to charge what she should be charging. Legal/illegal stuff aside, she's admitted to not wanting to use this as a way to earn money. She just gets confronted with "what do you charge" and doesn't know what to do.
We can't assume no response means she's troll and we can't assume everyone has read every post in these forum or will.
Not jumping on you Cakesdivine, just wanted to give another take on the "tone" of her post. What you perceive may not necessarily be what it is.
How about from now on, if we KNOW we are underpricing for a cake, let's keep it to ourselves. It's nothing to be proud of.
I can't speak for the OP, but I've never thought I WAS underpricing! I price based on the prices of the busiest bakeries in my area. I simply joined the forum because this topic is ALWAYS of interest to me. I like knowing where other people are coming from - it's how I learn.
How about from now on, if we KNOW we are underpricing for a cake, let's keep it to ourselves. It's nothing to be proud of.
I agree....for your sake and those that knowingly do it but don't seem to give a rat's a$$. It only causes drama, and rightfully so, because....shame on you! 
Stacy...the reason those big bakeries can charge that low of a price is sheer volume! They have a staff, they crank out lots of product in a day, they probably make in one day on volume enought to cover the overhead for the week so of course their prices will be lower, and because they sell more they can order wholesale in larger quantities, thus driving down their overhead costs. Hence my McDonald's statement earlier. The OP was comparing apples to oranges. A big bakery is NOT the same as a custom cake artist studio/shop, yes they may offer custom cakes but generally those cakes are whipped out just like a grocery store bakery cake. It just isn't even the same.
Yes! Yes! I made the "comparing apples to oranges" comment in my first post (page 2).
I see your point about volume / large bakeries. But I don't even have a small studio or a shop, hence no overhead or employees...so though I can't do near the volume of a bakery, I also don't have the overhead or employee costs to pay. As long as I've been turning what I consider to be a good part-time income, I've thought that was okay!
Ditto what dkelly said, this has not become nasty at all. But has anyone wondered why the OP has yet to comment further? Do I smell a pot stirring troll?
Probably because I entirely took over her thread and scared her away 
And about the whole "people are out of work and aren't spending on luxury items anymore"...I call BS on that too. There are plenty of thos situations where I am. And plenty of people who are still living comfortably, and they keep ordering the cakes. And when things turn around, if you have slashed your prices so shorribly and people get used to it....good luck bringing them back up, it's gonna be tough. You've now set a precedence with people saying cake is cake, and I'm going to practically give it away....
HALLELUJAH!!!!!
I agree with you 100% We think a lot alike , (must be the name) 
My family owns a restaurant and that is where I sell and bake cakes. My BASE price is $3/ serving. It is not worth my time to bake for less than that. I don't do many cakes, only a couple a month. Family and friends get the same price quote then a 45% discount for being VIP Children in the family get birthday cakes for free as their gift and I usually have them help me design and make it. It makes them feel special at their party to say they helped make the cake.
But bottom line is it is illegal to charge anything or receive money at all for a cake if you are not licensed. Even home bakers HAVE to be licensed if their state permits. So it doesn't matter if you feel it is too much to charge.
I know this thread isn't about home bakers VS bakeries but it is the bottom line for all of these discussions. Home Bakers are great as long as they are permitted. Bakery owners are great too, and must charge more to cover their overhead. But it is not the place of someone to say what they think a cake should cost if they haven't taken the right steps to be selling cake in the first place. I wouldn't pay $3 a serving for cake either because I know how to make one, and my prices shouldn't be compared to Sam's or grocery stores because my cakes aren't made in a factory then frozen for a month and thawed to be slapped with some icing and thrown in the cooler for another week.
I charge what I think my cakes are worth and if someone can't afford it that is fine with me . Costco is right around the corner!
Undercharging for your cakes is exactly what gives people like Bronwen Weber BS reasons to not support home baking bills. This is in line with the $20 Craig's List cakes. If you undercharge, you could drive down the price for everyone. You need to charge what others in your area with your similar skills are charging, not low balling it because you feel "guilty" about it or whatever.
I agree. Especially the very last (bolded) line.
I simply joined the forum because this topic is ALWAYS of interest to me. I like knowing where other people are coming from - it's how I learn.
It's how I learned! I thought my pricing was fine ... until I learned from the pro's on this site. Sharing ideas and experiences is always a good thing. Some things apply to me ... some don't. But I latched on to the ones that did!
Haven't read the thread.....but The price of the cake it is also how you market the product.
I torte and fill all of my cakes, so you are getting 4 layers of cake, three layers of filling....plus I add in the time/ labor/utilities, etc.
Is a "mocha venti latte with caramel fancy coffee with the same beans from the same country as folgers"really worth $6 at starbucks? Or is really just a dollar at best?
Price is better justified in a cake than it is a cup of coffee. They arent really putting much labor and effort into making that product.
But it is not the place of someone to say what they think a cake should cost if they haven't taken the right steps to be selling cake in the first place.
Do you mean in reference to other people's prices? Like, they shouldn't question another person's prices if they(themselves) are not liscensed? I'm asking because i didn't understand exactly what you were saying.
How about from now on, if we KNOW we are underpricing for a cake, let's keep it to ourselves. It's nothing to be proud of.
I agree....for your sake and those that knowingly do it but don't seem to give a rat's a$$. It only causes drama, and rightfully so, because....shame on you!
When did low prices become a bad thing?
How many of you guys shop at Wal-Mart because they have lower prices than the mini-mart at the gas station? How many people use coupons, or scan the Sunday sale circulars for the best price on TVs?
If your caking skills can garner a premium price, more power to ya, but there is nothing shameful or morally wrong with charging $2 a slice for cake.
How about from now on, if we KNOW we are underpricing for a cake, let's keep it to ourselves. It's nothing to be proud of.
I agree....for your sake and those that knowingly do it but don't seem to give a rat's a$$. It only causes drama, and rightfully so, because....shame on you!
When did low prices become a bad thing?
How many of you guys shop at Wal-Mart because they have lower prices than the mini-mart at the gas station? How many people use coupons, or scan the Sunday sale circulars for the best price on TVs?
If your caking skills can garner a premium price, more power to ya, but there is nothing morally wrong with charging $2 a slice for cake.
Because we are creating art. We aren't creating 500 sheet cakes in a day that say Happy Birthday on them. Our cakes are our art. And it's custom.
You want Walmart prices, then don't commission a custom piece of art work.
Walmart sells Fords. I sell Cadillacs.
When I only have the money to buy a Ford, I go to Walmart. When I have more money or want to have that really special unique car, I'll buy a Cadillac.
Low prices aren't bad and I shop at Walmart. But because I shop at Walmart and save money on the everyday things, that means i have money at the end of the month to have a really great party for my child with a cake that's more than just a mass produced thing with blobs of icing that are supposed to be balloons all over it.
I haven't read any of the replies, because it's almost quarter past midnight here and I NEED to go to bed and just can't go through 8 pages right now, LOL!
However, I just wanted to say that I wouldn't pay what I charge.
But plenty of people do... I'm busy with orders most weekends and even have to turn work away sometimes.
I work from home (fully inspected and registered with local authorities) and I'm frequently 
and the money some people spend on a cake for their child's birthday.
If I didn't make them, then my kids would get a supermarket cake!
What I wanted to say is that just because YOU wouldn't pay those prices, don't assume that others won't.
How about from now on, if we KNOW we are underpricing for a cake, let's keep it to ourselves. It's nothing to be proud of.
I agree....for your sake and those that knowingly do it but don't seem to give a rat's a$$. It only causes drama, and rightfully so, because....shame on you!
When did low prices become a bad thing?
How many of you guys shop at Wal-Mart because they have lower prices than the mini-mart at the gas station? How many people use coupons, or scan the Sunday sale circulars for the best price on TVs?
If your caking skills can garner a premium price, more power to ya, but there is nothing morally wrong with charging $2 a slice for cake.
Because we are creating art. We aren't creating 500 sheet cakes in a day that say Happy Birthday on them. Our cakes are our art. And it's custom.
You want Walmart prices, then don't commission a custom piece of art work.
That is the whole point, some people donât want (or donât want to pay) for a custom piece of cake art. There is a market for cake that cost $20 a slice cake and for cake that cost $2 a slice.
The point I was trying to make is that it is not shameful or wrong to sell cake that cost $2 a slice.
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