Average Slice Price

Business By Yankie Updated 29 May 2009 , 5:09am by KoryAK

Yankie Posted 28 May 2009 , 4:04am
post #1 of 9

How much do you guys charge per slice, I'm trying to figure out what to charge on a 10" round..but not sure...is a basic cake/iced with buttercream..nothing fancy.

8 replies
__Jamie__ Posted 28 May 2009 , 4:06am
post #2 of 9

Basic BC, no decorations is $4.00 for me. It's still my delicious scratch recipe and frostings/fillings.

Yankie Posted 28 May 2009 , 4:14am
post #3 of 9

So you charge $4. on the wilton book it states that a 6" serves 12, so you charge $48.00? I'm having a difficult time..I don't want to over charge either. My cake is from scratch too.

SugarFrosted Posted 28 May 2009 , 4:16am
post #4 of 9

Prices vary regionally. Your best bet would be to call bakeries in your area and ask their per-slice price.

__Jamie__ Posted 28 May 2009 , 5:15am
post #5 of 9

No, I have a minimum order of $50.00 So a 6" bare nothing automatically gets bumped up to $50.

FromScratch Posted 28 May 2009 , 5:22am
post #6 of 9

I would charge the same as Jamie... only my minimum order is $100.00. I have done smaller orders for good customers though if they really just want something small and *really* simple.

When you do call your local bakeries remember to disregard your grocery stores and Wal*Mart type places. Also know that your local bakery has a different price point than you will. They can order their ingredients is bulk, thus reducing their production costs.

Your best bet is to sit down and figure out how much it costs you to make your recipes. Think about everything... cake boards, piping bags, gas to go to the store to shop for ingredients... Then figure what you want to make for your time. For me, turning on the oven for less than $100 just isn't worth it (unless I really like you icon_wink.gif).

susiehk Posted 28 May 2009 , 4:40pm
post #7 of 9

Joffy this is such a great question.

As I've been getting started, I hear of SO many of us who go out of business after a year or two - and I'm guessing because it's hard to make money at this. I am just starting and am contemplating myself whether to charge forward or stop.

I'd love to hear from someone who is able to actually charge per slice or per cake what they actually put into it...from hours to ingredients and overhead if kitchen rental is involved.

I've estimated that I'd need to charge at least $250 on a custom decorated cake to make it worth my time...guess that's about $20 per slice (but then I might be slow since I'm a newbie!). And here in the Pacific Northwest I don't know a lot of people who want to drop that kind of money on a cake.

Is anyone actually making a profit doing this? icon_smile.gif

indydebi Posted 29 May 2009 , 4:21am
post #8 of 9
Quote:
Originally Posted by Joffy

So you charge $4. on the wilton book it states that a 6" serves 12, so you charge $48.00? I'm having a difficult time..I don't want to over charge either. My cake is from scratch too.



That may sound high but remember smaller products have to incorporate more of the overhead.

you're using the same amount electricity to mix and bake a 6" as you are a 10" ... but with less income.

You're using the same amount of time (read labor read payroll) to do this mixing/baking..... but with less income.

Boxes and boards are pretty much the same (difference of pennies for size diff) ... but less income for the smaller cake.

That's why smaller items/quantities are generally higher than larger or higher volume items...... overhead costs.

As I just said on another thread ... some will pay it ... some won't.

susiehk ..... My annual insurance expenses cost me $10 every single day of the year. So if you do only one cake a week, imagine putting $70 out of that cake aside just for insurance. But if you do 2 cakes a week, you only need to put $35 of each check aside for insurance (overhead costs were just divided up between 2 cakes!).

Rent is $1500/month = $50/day. If you do one cake a week, not only would you have to imagine setting aside $70 of the cake price for insurance, but another $350 for the rent. But if you do 4 cakes a week, then the overhead costs of $420 gets divided up between 4 cakes .... and you only have to allocate $105 out of each of the 4 cakes (instead of $420 out of one cake).

Overhead .... gets smaller with higher volume.

This is the part of our Economics 101 class that we slept thru! Who knew it would actually come in handy!? icon_biggrin.gif

KoryAK Posted 29 May 2009 , 5:09am
post #9 of 9

My tiered cakes are $7.25ps+ but for a 10" round its $70. I also have a minimum order of $75.

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