Help With Pricing

Baking By SweetCakez Updated 21 Jul 2009 , 5:54pm by indydebi

SweetCakez Posted 17 Jul 2009 , 2:10am
post #1 of 13

How much would you charge for these? They are homemade (cake and icing)? I'm thinking about doing them as a bouquet. Thanks

12 replies
Mylittleflutterby Posted 17 Jul 2009 , 12:20pm
post #2 of 13

Wish I could be of more help, but I am also trying to figure out pricing for my cupcakes. Everytime I think I have decided on a price I kinda chicken out lol

cylstrial Posted 19 Jul 2009 , 10:10pm
post #3 of 13

A lot of people charge the same amount for a cupcake and a slice of cake. For instance, if they sell their cakes at $3.50 a slice, they sell their cupcakes at $3.50 a slice too. A cupcake is generally bigger than a slice of cake and takes more labor.

With that said, I have seen others charge $1.00 for a mini cupcake. And $2.00 for a regular cupcake, going up from there. Some add .25 for a filled cupcake. Some add .25 for a RI decoration. Some charge $3.00 for a fondant decoration, plus the charge for the cupcake. So it really just depends on you and your area.

I would suggest that you check out your local custom bakeries. See what they charge. I know that I paid $3.99 for a jumbo cupcake with SMBC on top at a local custom bakery.

indydebi Posted 19 Jul 2009 , 11:31pm
post #4 of 13
Quote:
Originally Posted by cylstrial

I would suggest that you check out your local custom bakeries. See what they charge. I know that I paid $3.99 for a jumbo cupcake with SMBC on top at a local custom bakery.




And notice she said custom bakeries ... not grocery store bakeries. big difference.

bm162003 Posted 20 Jul 2009 , 11:50am
post #5 of 13

HI I HAVE MY FIRST ORDER FOR A 10IN ROUND CHOCOLATE CAKE WITH CHOCOLATE FILLING AND EDIBLE IMAGE OF HELLY KITTY .I DO CUPCAKE WITH EDIBLE I PRICE THEM $24.00 FOR THE DZ. BUT I DON'T KNOW HOW MUCH SOULD I CHANGE FOR THE CAKE PLAESE CAN SOMEONE HELP ME.THANK YOU

cylstrial Posted 20 Jul 2009 , 12:16pm
post #6 of 13
Quote:
Originally Posted by bm162003

HI I HAVE MY FIRST ORDER FOR A 10IN ROUND CHOCOLATE CAKE WITH CHOCOLATE FILLING AND EDIBLE IMAGE OF HELLY KITTY .I DO CUPCAKE WITH EDIBLE I PRICE THEM $24.00 FOR THE DZ. BUT I DON'T KNOW HOW MUCH SOULD I CHANGE FOR THE CAKE PLAESE CAN SOMEONE HELP ME.THANK YOU




You're in NY! I have no idea what they charge for per slice in NY. I'm going to guess that it's a lot more than good old Indiana though. You should check out your custom bakeries too. That way you aren't cheating yourself or robbing your customer.

Is the cake fondant or buttercream?

bm162003 Posted 20 Jul 2009 , 12:42pm
post #7 of 13

It going to be with buttercream

brookerene Posted 20 Jul 2009 , 4:34pm
post #8 of 13

First determine your costs for making the cake (boxes, cake mix, flour, sugar, etc). Lets estimate $15. Now figure out how much time you are going to take to bake and decorate it. Let's say three hours. Now how much do you want to make per hour for your labor- let's say $10/hour so theres $30 for your labor. So take your costs plus your labor 15+30 and the price of your cake is $45.
Hope this helps...

jclvs2 Posted 20 Jul 2009 , 6:11pm
post #9 of 13

Thanks Brookerene ! That has helped me too!! I was unsure for what charging for my time would be but my guess was close to yours. Thanks again!icon_smile.gif

indydebi Posted 20 Jul 2009 , 7:13pm
post #10 of 13
Quote:
Originally Posted by brookerene

First determine your costs for making the cake (boxes, cake mix, flour, sugar, etc). Lets estimate $15. Now figure out how much time you are going to take to bake and decorate it. Let's say three hours. Now how much do you want to make per hour for your labor- let's say $10/hour so theres $30 for your labor. So take your costs plus your labor 15+30 and the price of your cake is $45.
Hope this helps...




Um .... if you use this kind of math for your business, you're not making any money.

You bought $15 worth of supplies and wrote a check for $15. You paid your employee (in this case the employee is you, but it's still an expense) $10/hour for 3 hours so you wrote a check for $30. As a business or as a business owner, you made zero money on this cake. All of the incoming went right out the door.

You didn't allocate anything for overhead ..... commercial car insurance for the delivery vehicle, the interest on the loan to buy that van, liablity insurance property insurance, taxes, payroll taxes, utilities, etc. etc. Where's the "put aside" money to reinvest in your business, such as new tools, pans, decorating bags?

Overhead.

brookerene Posted 21 Jul 2009 , 5:33pm
post #11 of 13

Actually the $15 should include the business costs. THis figure is arbitrary. Plug in ALL the costs. Plus it makes a difference on costs if it a person at home or a bakery with empolyees, taxes etc. Also determine if you are spending too much time decorating a cake. Is the employee efficient? Are you taking 8 hours to do something that should take 3? So ask what are your costs....ingredients, taxes, overhead, etc. Certain things like electriity should be divided among all the projects. So how much do you spend in electricity during your 8 hours...etc. I'm rambling here. There are a lot of factors and it is all determine by your business practices. It's not super simple, but it's a start. Good luck.

brookerene Posted 21 Jul 2009 , 5:34pm
post #12 of 13

Actually the $15 should include the business costs. THis figure is arbitrary. Plug in ALL the costs. Plus it makes a difference on costs if it a person at home or a bakery with empolyees, taxes etc. Also determine if you are spending too much time decorating a cake. Is the employee efficient? Are you taking 8 hours to do something that should take 3? So ask what are your costs....ingredients, taxes, overhead, etc. Certain things like electriity should be divided among all the projects. So how much do you spend in electricity during your 8 hours...etc. I'm rambling here. There are a lot of factors and it is all determine by your business practices. It's not super simple, but it's a start. Good luck.

indydebi Posted 21 Jul 2009 , 5:54pm
post #13 of 13
Quote:
Originally Posted by brookerene

It's not super simple, but it's a start.



Boy, truer words were never spoken! THe pricing issue is a headache for everyone!

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