OK, I don't want to fuss about the prices here, but I did a little survey of cake prices in my are, started with VONS, so I could see how I could blend in with my cakes. At VONS (california) I saw a cake 8" (2 layers = 4" high) decorated with BC chocolate and BC roses. Simple cake, their cost was $14.00, and by serving chart here on CC it should serve 24. If I am right, I should charge around $36-40??? How could I compare to bakeries, why they are cheep? Consumers would go to VONS and not me. In the near future, I would like to rent a kitchen a become legal, I am not sure anymore, if I should go for it....
I'm not going to lie but some store chains produce good tasting cakes, enough to please the average person.
They are cheap because they get all their ingredients in super massive quantities and doesn't even take a lot of money to produce a cake.
I would suggest you sell whichever you are comfortable with as long as you don't lose any $$$
Thank you for your opinion. I am going to do some more marketing surveys..
Comparing supermarket cakes to stand-alone bakery cakes is like comparing apples to oranges. As the other poster said, places like VONS charge lower prices because they buy massive quantities, and, although the taste is passable, it honestly doesn't compare to a cake made from scratch. Ditto the decorating (most supermarket cakes look the way they look because decorators must produce X number of cakes within a specific time frame -- they simply cannot take the time to do a particular effect/design).
What about checking out stand-alone retail bakeries in your area? Their prices would be closer to what you may be able to charge.