I am a baker just starting out and pretty much baking for friends and family. I've been charging cost of supplies but since I'm starting to branch out I've upped my charges slightly. (I'm not really trying to undercut any other bakers, if there are in my area, I'm just not confident in my own abilities) Anyway, I recently had a acquaintance give me a $200 budget and creative control. I ended up spending about all of it on supplies (that includes the gum paste tools and new pans.) Now here is the nitty gritty my boss (I'm a restaurant manager) told me that if she paid $200 I should have only spent $25 on the cake to make. However, this weekend I'm making a baby shower cake for one of our co-workers who she is throwing the shower. She is the one that approached me about the cake. I really didn't have any doubt about her paying for at least the cost and maybe a little bit more (which I was willing to do so I could buy a gift since I really don't work with our co-worker that often) However, yesterday she informed me that the budget only allowed for a $30 cake like you would get at Wal-Mart! My problem is that I've already bought the supplies and that has cost me about $50 and some of it will go bad if I don't use it soon and I would really like to have a great tasting cake to get my name out there more and not degrade myself for putting out a box cake but is it really worth loosing money over. I should tell her to go to Wal-Mart!!!!

Here's my suggestion. Go and buy a Walmart cake for the shower. Don't spend more than $30.

Then, take that $50 worth of supplies and bake 6 delicious cakes, decorate them nicely, and drop them off at 6 businesses that have LOTS of women working there. With COUPONS for $5 off first order.

You'll get a lot more orders from doing this than from a shower with a cheap cake.

People are always happy to get free cake. people are never grateful for a cake they have paid even one nickel for.

the budget only allowed for a $30 cake like you would get at Wal-Mart!

That is what I would get her. And then I would bake with the other supplies I bought, and give out tastes. You will more than likely have bought the other supples at some point and can use the pans and such on other occasions so all is not lost ( you just bought them earlier is all).

I like these ideas now where to plant my tester cakes

I'd tell her to go to walmart then....make someone who appreciates your work and effort a delicious cake...maybe your church or something of the like.

You really should only consider a VERY SMALL % of the tools, and pans towards the cost. They are items you should have anyways. Now that being said, did you say I have to buy pans, and flower cutters? I doubt it. They weren't expecting to pay for your pans.

Mike

I think she's talking about two separate people/cakes here.... the $200 budget and the $30 WM budget, unless I just read that wrong.

How did your boss know how much you were paid for a cake you did on your own? I don't think I'd be sharing that information...that's just me. You never know if she (or he) is sharing that information with others and you also never know when someone - like a boss - will take that information and use it against you for whatever reason...especially since your boss is also in the food business.

Just a thought!

I had a a similar situation and I told the person, "I can not give you what walmart offers because I spend more then 10 minutes on your customized cake. Have a Great Day." that same evening she called back and decided that she would pay what I charged and I couldn't take her order because I had received an order for the same day.

My point is : Don't let anyone price your work for you. It's your business you go by your business policy (if you don't have one make one, trust me you need it to help run your business better) and stand behind them 100%, for example my policy about customers giving you 50% non-refundable deposit up front and the rest 7 days before event, they sign an agreement contract (if over the phone send them a email invoice that they confirm) and its followed if not I don't make the cake, and thats final. Make a Contract Agreement and incorpurate your business Policy in it and stick to them, that way if you need to buy pans, flour,eggs, cream chz, pastry bags, etc... you have that half of the money to buy the supplies and then your other 50% as a profit, but as your getting established you really don't see a profit. So what your manger is tell you about $25 spent on supplies, thats when you already have everythingyou need and your just replacing what your going to use... Hope this makes sense and helps you or anyone that reads. Take care,

Sandy