Beginner Pricing Question

Business By izaxgirl Updated 1 May 2009 , 11:30pm by cylstrial

izaxgirl Posted 30 Apr 2009 , 8:56pm
post #1 of 6

Over the past few years I have been making cakes and cupcakes for friends and family for little or nothing. But recently I have been getting more and more request for more detailed/tiered birthday cakes and wedding cakes too. I have since gotten a website to display my cakes and put pricing info but I really have no clue what to charge. I don't want to go too high but I don't want to work for free either. I also worry that since I am still somewhat a "beginner" I should start out low then increase as my skill level increases. I am actually booked for several things this month. ppl have given me pics of what they want and i have commited but I have no idea what to charge. HELP!!!!!

5 replies
jenmat Posted 30 Apr 2009 , 9:31pm
post #2 of 6

First off, are you licensed? If not, technically you shouldn't be charging anything. That said, wedding cakes is where you'd get into the most trouble if you're unlicensed.

Assuming you're licensed, then call the local bakeries, grocery stores, etc, and find out their pricing. Because you're new, go a little above the Grocery, and a little below the bake shops, and you'll probably find a niche.
Good Luck!

kelleym Posted 30 Apr 2009 , 10:39pm
post #3 of 6

If you go to the CakeBoss web site, under 'Cake Stuff' there is an article called 'How much should I charge?' You might find it helpful. thumbs_up.gif

Deb_ Posted 30 Apr 2009 , 10:59pm
post #4 of 6

You really can't just base your pricing on what the grocery/store front bakeries are charging. These places buy their supplies in bulk which you most likely will not be doing, so right there your *cost for supplies* will be much higher then theirs.

I agree with Kellym, you need to use a pricing matrix to figure out *your* cost for ingredients, utilities, gas, and labor.

Yes, you want to be competitive, but you also need to cover your costs and make a decent profit off of each cake.


The licensing thing should also come into play, but I won't go there.

indydebi Posted 30 Apr 2009 , 11:41pm
post #5 of 6
Quote:
Originally Posted by dkelly

You really can't just base your pricing on what the grocery/store front bakeries are charging. These places buy their supplies in bulk which you most likely will not be doing, so right there your *cost for supplies* will be much higher then theirs.

I agree with Kellym, you need to use a pricing matrix to figure out *your* cost for ingredients, utilities, gas, and labor.

Yes, you want to be competitive, but you also need to cover your costs and make a decent profit off of each cake.


The licensing thing should also come into play, but I won't go there.


agree with all of the above.

I wanted to add another reason your cost will differ from store front bakeries is high volume and increased productivity.

In a home oven, it would take me at least 3 hours, closer to 4, to bake a 4 tier cake (6/8/10/12), but I baked one yesterday in under an hour because I have a larger oven and can get all 8 pans in the oven at the same time. With a 20-qt mixer, I made enough icing today to ice the 4-tier wedding cake, 2 sheet cakes, a couple of small round cakes and STILL have enough icing left over to do another couple of small wedding cakes.

Because our equipment is larger, we can work faster and more efficient, thus our labor costs are significantly lower.

cylstrial Posted 1 May 2009 , 11:30pm
post #6 of 6
Quote:
Originally Posted by indydebi


In a home oven, it would take me at least 3 hours, closer to 4, to bake a 4 tier cake (6/8/10/12), but I baked one yesterday in under an hour because I have a larger oven and can get all 8 pans in the oven at the same time. With a 20-qt mixer, I made enough icing today to ice the 4-tier wedding cake, 2 sheet cakes, a couple of small round cakes and STILL have enough icing left over to do another couple of small wedding cakes.




Wow! That would be so nice! icon_eek.gificon_biggrin.gif Maybe I'll get those things one day. icon_smile.gif

Quote by @%username% on %date%

%body%