Okay, so I have a relative who is opening a party facility and she has asked me to supply her cakes. I jumped at the opportunity (if for nothing else but the practice, you know?). I quoted her a price of a $40 for a 12x18 that is shaped into a megaphone and if cupcakes are needed it will be an additional $20 for 10. So she texts me today explaining that the cake is her biggest expense and asking if I could possibly make the cakes for $25 each. ARE YOU SERIOUS?!?!?!?!?! $25 will barely cover my expenses. Once again, what are people thinking when they ask for stuff like this? Am I the only one who thinks that this is outrageous?

I think everyone here on this board will think that is outrageous, but unfortunately most non cake people will think there is nothing wrong with that.

There are a couple of things you might want to check out, before throwing her to the curb. One is can you get frozen sheet cakes, and at what price. This may be an option, to offer her a cheaper cake. That is if you want to go this route. Then i would only offer the sheet cake iced with minimum decorations. No carved shit, that takes time and time is money.
The other thing is give her walmarts number and walk away.

dont waste your time.

Don't even reply. You weren't charging enough in the first place.

Jen80 - my thoughts exactly!

No way Jose! BUT, why are you charging $2 per cupcake and only 74cts per serving for a carved sheetcake?! That, my cake buddy, is crazy - you really need to check your pricing hun!

What about a megaphone cake made out of cupcakes? that way you can adjust the size.

The only problem with your prices is that you will burn out on them.

Not to mention your relative is beginning a business on less than stellar numbers. Not just what are you thinking but what is she thinking?

You can't build a business on figures like that.

Update: So I talked to my cousin today and she has decided to go with another option for her cakes (thank God!). I never thought about using the cupcakes to make a megaphone, maybe that will go over a little better. I also wasnt thinking about the cost being 74cents per serving because the cakes weren't going to be the entire 12x18, so I wasn't exactly sure how to price them. I will suggest the idea of a cupcake cake in the shape of a megaphone and see what she thinks. How would you price those? Thanks everyone for the input!!!

Y'know like make a template on paper or cardboard so you know what size you can make it and not go crazy. Just take empty cupcake liners and see how you can arrange them on there.

I'm liking the two bucks each at least no filling. Just cake and icing.

I mean that would be real easy to me--not a lot of time so if I wanted to help family I'd maybe go that way.

I mean I kinda know what people mean by saying not even answer her but I mean it's family too. Yes its way too low ball but you gotta try --at least talk to her-- I think maybe we meant it ain't even worth our breath yeah for sure. She needs to smarten up.

She said she is going with another option. You say you are going to suggest the cupcake microphone. Why? Your cupcakes were priced higher than your cake. I thought price was the issue?

I think that if she can get something in the $25 range, she would be happy with it. I never thought about suggesting the cupcakes to her from the beginning. But at $2 each, she can get a dozen cupcakes in the shape of the megaphone. If she doesn't think that is an option, then oh well. Anyway, thanks so much K8. You're an angel.

Okay, so IF you go ahead and do the cake for her for less, then will she give you a huge discount when you want to use the facility yourself??? You could use this as bargaining chip.

I have heard several times that caterers and party people and etc do NOT like to pay full price for cakes. Its hard to get a good contract with someone like that and make both of you happy.

I agree, if they want the contract, you'll have to do some kind of frozen cakes/Sam's icing sort of thing so that your costs and work are minimal but you can still make your profit while making them happy.

But if they want fancy work, they have to pay the fancy prices.

Totally agree that even the $40 wasn't enough for a 12X18! Tell your relative what your cost per person is and then see what you can work out. You are worth more than that!

There is no little amount of ingredients or time that I can see doing ANYTHING for $25. I don't understand how people choose to sell cakes & make like $5 on the deal...if that. Cupcakes average $3 a piece and thats pretty much everywhere. A dozen cupcakes (which I would never make) would be $36. Why don't you suggest she go to Wal-Mart since those are the prices she wants to pay. I know a lot of people like to do cakes for the "practice', but I just can't see cheating myself like that. At the very least I could use my time doing something else. Not to mention, when you do decide to get serious about pricing, you have all ready established the reputation of being cheap.

The only way I'd do it is if they were ordering 5-10 per week...ordering frozen cakes, and whipped out a bakery style cake. Then at $25/piece you would make $100-$250 per week...which after expenses would be okay as long as the person is pretty fast at icing cakes.

I agree its not super worth it.

Tesh, I know at the beginning it is SO SO hard not to offer your services everytime someone mentions cake. But you're going to have to think seriously about this one before you commit, otherwise you will be stuck in a situation that will be too hard to get out of without having an argument. In the end you will not enjoy doing it and it will just seem like a chore.

You will have to do too much work to make a CCC look like a megaphone (think of all the round curvy bits at the edges). I really don't think you will be able to charge enough for the amount of time you put into it. Plus it's not something that can just be put into a container and then have it returned every time you make a new one. You will have to buy a new board every time.

Yeah, the prepurchesed cakes kind of......well, they're not my thing. I had a cafe that wanted cupcakes but didnt want to pay the whopping $1.50 I charge - she asked if I could just buy the cheap, frozen ones and decorate them........ I said 'Nope, but you can!".

Customer: "Hello, Joe's Garage? I was wondering if you could give me a complete engine overhaul. Oh, but I don't want to pay more than the cost of a regular tune up. Is that okay? ... Hello? Hello?"

I would definitely skip this... don't forget, her cousin likely wants to get the cakes as cheap as possible so that she can mark them up to HER customers that use the party facility. That, however, is not your problem and she needs to look into a cheaper option, if that is the case.