Subcontracting With A Bakery

Business By lozpa Updated 2 Aug 2009 , 2:16am by CakeDiva73

lozpa Posted 24 Jul 2009 , 5:57am
post #1 of 17

I have a barery who wants to subcontract for me to do specialty, wedding cake and more. I am not sure how to use Cake Boss to help me figure out what to charge him and yet make a profit. is there a way to use CB for this type of venture.

16 replies
peg818 Posted 24 Jul 2009 , 12:27pm
post #2 of 17

what i would do is charge my per serving price, they can add to that.

cylstrial Posted 25 Jul 2009 , 12:15am
post #3 of 17

I agree. You need to worry about what you sell the cake for...not how they are going to price the slice of cake.

CakeForte Posted 25 Jul 2009 , 6:55am
post #4 of 17

You could make a "suggested retail" chart for them. Calculate you rate then add 30% or whatever...if you want to be nice lol. It's their deal to worry about though, not yours.

cylstrial Posted 25 Jul 2009 , 12:09pm
post #5 of 17
Quote:
Originally Posted by CakeForte

You could make a "suggested retail" chart for them. Calculate you rate then add 30% or whatever...if you want to be nice lol. It's their deal to worry about though, not yours.




That's a good idea!

lozpa Posted 31 Jul 2009 , 4:02pm
post #6 of 17

thank you for all your ideas,

I don't think my orginal question was clear, I was not so much as worried about the subcontactors price, i wanted to know how do i do the pricing.
My current idea is to charge $3.75 for Wedding, Anniversary, Sweet 15'and 16's cakes, $2.50 for Birthday Cakes and $ $2.75 for Speical Occasion cakes. How does that sound.

leah_s Posted 31 Jul 2009 , 5:12pm
post #7 of 17

Why would the cakes be priced different by occasion? Do you use different ingredients?

CakeDiva73 Posted 1 Aug 2009 , 4:05am
post #8 of 17

lol, here we go........ icon_lol.gif

JaimeAnn Posted 1 Aug 2009 , 4:23am
post #9 of 17

Uh Oh here comes LEAHS .... everybody duck the virtual "SLAPS" are about to commence ..


Hahhahhaha

Just kidding..

But she is right and are those your base prices , what if someone wants a highly decorated cake , you cant sell that for the same as a basic BC cake.

lozpa Posted 1 Aug 2009 , 6:10pm
post #10 of 17

Well most of my cakes are very detailed and most are 3-D stand up. I pretty much enjoy and offer cakes with great detail and color. - I really enjoy- ACE of CAKES and CAKE BOSS. those are my kinda of cakes. my only problem is that this will be my first subcontact and i have out grown my own kitchen. And with no job/or other source of income i can't get a bigger place. So all of this subcontracting is new for me. I was hoping to locate a price matrix that i can use to help me and have purchased CAKEBOSS business program. but still learning how to use it. It was suggested to me to use two different prices based on the occasion. But, as i am sitting here, should i charge based on the colors used? Oh! before i forget does anyone have the downloadable price matrix that they can forward to me via email? [email protected]

cylstrial Posted 1 Aug 2009 , 7:45pm
post #11 of 17

Here's the pricing matrix on cake central. You just click the link and then download it. Hope this helps!

http://www.cakecentral.com/cake-decorating-ftopict-5711.html

lozpa Posted 1 Aug 2009 , 8:29pm
post #12 of 17

Thank you, I just got it about an hour ago

sweet-thing Posted 1 Aug 2009 , 8:34pm
post #13 of 17

I am totally confused. Why would you price it based on color? icon_confused.gif Maybe I am missing something.

lozpa Posted 1 Aug 2009 , 9:13pm
post #14 of 17

Never minds. i am not sure what i should do

JaimeAnn Posted 1 Aug 2009 , 11:58pm
post #15 of 17

Based on your description of what type of cakes you do , Those prices are way too low!

My BC cakes start at $3 / serving, fondant $4 / serving, and carved $5 / serving.


Also:

1) Since you haven't uploaded any pics of your cakes on here it is really hard to give you an estimate of what you should be charging.

2) You mentioned baking in your home kitchen. Are you legal? I don't know your circumstances or where you live but most states require you to have a licensed inspected kitchen to legally sell home baked foods. (Some states don't allow it at all)

Since you are talking about subcontracting (or even just selling to individuals) you would need to make sure it isn't against the law as it could lead to HUGE fines and other problems for you.


HTH

OhMyGanache Posted 2 Aug 2009 , 1:52am
post #16 of 17

I have a different pricing structure for tiered or non-tiered cakes. I start pricing at $2.50/serving for single tier cakes, and $3.50/serving for tiered cakes. I don't care if they're birthday, wedding, etc. - but tiered cakes are more work and require more "equipment" (and are more stressful).

I would not charge the bakery what you would charge anyone else... I would give them a bit of a break on price since they are the ones doing all the advertising, etc. You are going to get far more exposure going this route. Also, if they are the ones doing the consultations and dealing with the customers - that's a time savings to you. Why should they do all of that for free.

If it were me, I'd charge only 75% what I would charge a customer who contacted me directly.

CakeDiva73 Posted 2 Aug 2009 , 2:16am
post #17 of 17

Hmmm.... I think you have to base your pricing on what you feel is worth your while. If you cut your price by 25% and then are doing many cakes per week at a reduced rate, meanwhile, the bakery may charge way more than 25% above your normal fee, is it still worth your while?

It's like they are getting you to do all the gruntwork while they take all the credit, or am I misunderstanding? Because sub-contracting has a different ring then working with a bakery to sell your cakes.

I like what Debi said, you have to come up with your own pricing structure and let them worry about profit. Since they have a brick and mortar bakery, etc. then they should be able to (potentially) charge more then your normal price to begin with so why the discount? Or at least, why so big?

I do understand what ganache is saying and I don't disagree, it's just that it already seems like they will be buying these cakes for quite a bit less then what they will be retailing them for.

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