Is _____ A Reasonable Base Price?

Business By prterrell Updated 25 Sep 2009 , 5:25pm by Lita829

prterrell Posted 24 Sep 2009 , 3:56am
post #1 of 25

For an 8" round x 4" tall cake done in buttercream is $50 a reasonable base price?

And is $75 a reasonable base price for same cake covered in fondant?

For a 9"x13"x4" cake done in buttercream, is $117 a reasonable base price?

24 replies
leah_s Posted 24 Sep 2009 , 4:02am
post #2 of 25

Well, your price jumps around a bit between the two bc cakes. I'd settle on a per serving price. it's really the only fair way to price IMO. $2 per serving for an 8" cake = $48. The 9 X 13 serves 52, X $2 = 104.

Looks like you're going for $3 for fondant, so the 8" round would be $72.

prterrell Posted 24 Sep 2009 , 4:29am
post #3 of 25

Don't worry Leah_s, there is a strict formula being applied here! Instead of doing a per serving price, I've decided that a per volume price is more accurate and thus more fair for me and the customer. So I've calculated the prices at 25 cents per cubic inch of cake, with fondant being 1.5 times the price of the buttercream cake. The 8" cake (220.96 cubic inches of cake) actually comes to $50.24 (for 25 1"x2"x4" servings) for the buttercream. The quarter sheet (468 cubic inches of cake) at 25 cents per cubic inch comes dead on $117 (for 58 1"x2"x4" servings).

The calculations aside, are these fair and reasonable prices?

leah_s Posted 24 Sep 2009 , 4:39am
post #4 of 25

They're fair and reasonable provided you're computed your costs and desired profit margin.

costumeczar Posted 24 Sep 2009 , 10:41am
post #5 of 25

Regardless of what you think is fair, remember that there will always be cheapos who tell you it isn't. Stick to your pricing once you settle on it and don't let people talk you down!!!

dinie Posted 24 Sep 2009 , 11:13am
post #6 of 25

It must be nice to live in a area where you can get those prices. I know that where I live it is very hard to get more than 35.00 for a 1/4 sheet cake and 8" round 25.00.

Deb_ Posted 24 Sep 2009 , 11:55am
post #7 of 25
Quote:
Originally Posted by dinie

It must be nice to live in a area where you can get those prices. I know that where I live it is very hard to get more than 35.00 for a 1/4 sheet cake and 8" round 25.00.




It depends on what customer base you're targeting. It's true that some people would never pay the higher price, but there are plenty of people who will.

My way of thinking is, since my cake business is my part-time business, I'm happy with 1 or 2- $100 minimum cake orders a week instead of 8- $25 cakes.


It's important to consider what your profit margin is when you sell a 1/4 sheet for $35......ingredients, utilities, insurance, rent/mortgage etc., are all very expensive. Please be sure you're not selling yourself short.

It's OK to hear "you're too expensive" from a client.....we all put a lot of time and energy into our products and it does take me away from my husband at night, (well I'm just in the basement, but you KWIM) so it needs to be very worth my time and energy.

prterrell Posted 24 Sep 2009 , 6:04pm
post #8 of 25
Quote:
Originally Posted by dinie

It must be nice to live in a area where you can get those prices. I know that where I live it is very hard to get more than 35.00 for a 1/4 sheet cake and 8" round 25.00.




I do all-scratch gourmet and European style cakes. People are more willing to pay good money for something "exotic". icon_wink.gif

CakeDiva73 Posted 24 Sep 2009 , 7:51pm
post #9 of 25

lmao - I also was forced to use Pi to determine my cake prices! Whoever says you're never going to use Algebra after high school is wroooooong! icon_smile.gif

I actually am re-doing my prices because my two choices, party or wedding, are confusing even to me, lol. Guess I should have listened to IndyDeb 2 years ago! icon_lol.gif

__Jamie__ Posted 24 Sep 2009 , 8:02pm
post #10 of 25
Quote:
Originally Posted by prterrell

Quote:
Originally Posted by dinie

It must be nice to live in a area where you can get those prices. I know that where I live it is very hard to get more than 35.00 for a 1/4 sheet cake and 8" round 25.00.



I do all-scratch gourmet and European style cakes. People are more willing to pay good money for something "exotic". icon_wink.gif




thumbs_up.gif Right! icon_wink.gif

prterrell Posted 24 Sep 2009 , 8:24pm
post #11 of 25

Yeah, I'm redoing mine because the costs of ingredients has gone up. I also realized that I was insane for thinking before that 1"x2"x4" was not a "big" enough serving of cake. Even, so, I had to make this thread for reassurance, you know, because part of me is like, "you can't ask someone to pay that much for a cake!" It's like I KNOW what the cakes are worth, but at the same time, I have that little bit of self-doubt that we all seem to have, that questions whether we or our cakes are good enough. Thank goodness for CC!

cylstrial Posted 24 Sep 2009 , 8:31pm
post #12 of 25
Quote:
Originally Posted by prterrell

It's like I KNOW what the cakes are worth, but at the same time, I have that little bit of self-doubt that we all seem to have, that questions whether we or our cakes are good enough. Thank goodness for CC!




You can do it! Your cakes are worth it!

Now repeat that over and over...

icon_biggrin.gif

KHalstead Posted 24 Sep 2009 , 8:40pm
post #13 of 25

wow, I really need to raise my prices.......I charge $1.00/serving for single tiered 4" tall cakes and my 9x13 is $20.00 !!!

Of course, my cakes aren't exotic in flavor......but I have some unique flavors I guess (pralines and cream, cookies and cream, lemon w/ fresh blueberries, etc.)

prterrell Posted 24 Sep 2009 , 8:51pm
post #14 of 25
Quote:
Originally Posted by KHalstead

wow, I really need to raise my prices.......I charge $1.00/serving for single tiered 4" tall cakes and my 9x13 is $20.00 !!!

Of course, my cakes aren't exotic in flavor......but I have some unique flavors I guess (pralines and cream, cookies and cream, lemon w/ fresh blueberries, etc.)




$20 for a 9x13x4? That's 34 CENTS a serving! That's CHEAPER than the grocery stores!

So, basically you're charging for ingredients and giving your labor away for free. Yeah, you need to raise your prices!

__Jamie__ Posted 24 Sep 2009 , 8:53pm
post #15 of 25

OMG. No way. Please tell me I didn't just read that. You bake a cake, decorate it, pack it up....and all you get handed in return is a $20 bill?

Deb_ Posted 24 Sep 2009 , 9:04pm
post #16 of 25
Quote:
Originally Posted by KHalstead

wow, I really need to raise my prices.......I charge $1.00/serving for single tiered 4" tall cakes and my 9x13 is $20.00 !!!

Of course, my cakes aren't exotic in flavor......but I have some unique flavors I guess (pralines and cream, cookies and cream, lemon w/ fresh blueberries, etc.)




icon_eek.gificon_eek.gificon_eek.gificon_eek.gificon_eek.gif

For once....I'm speechless icon_surprised.gif

mysonbronson Posted 24 Sep 2009 , 9:08pm
post #17 of 25

I live in Hawaii and not only is homes and gas expensive, but so is cake. A very well known bakery here sells basic cakes covered in Non-Dairy Whipped Cream or Buttercream starts at $4.00 a serving, cakes that are covered in Rolled Fondant or Custom Designed starts at $5.50 a serving. "Prices will be determined by the cake size and the complexity of the cake design chosen." They also get $3.00 for each cupcake cake with a minimum order of 130 Cupcakes and everything else gets added on to that, cupcake stands, delivery and setup. So, it's hard for me to determine what average pricing is since it's so expensive to live in "Paradise".

Deb_ Posted 24 Sep 2009 , 9:34pm
post #18 of 25

OK people who live in Hawaii, don't get to complain. icon_lol.gif

Lucky you!

mysonbronson Posted 24 Sep 2009 , 9:53pm
post #19 of 25

dkelly, not complaining, but for every good there is a bad. No real craft stores here, I order everything online and have it shipped in, which is probably why our cost are so much higher. I went to Long Island to visit my inlaws and fell in love with AC Moore, Joanns and Michaels. I now go there every time I go to Long Island which is twice a year and I love that they have 40% off coupons every week. To bad I can't use them online.

Deb_ Posted 24 Sep 2009 , 10:42pm
post #20 of 25

I know but the bad must be so much easier to take when you see those beaches and palm trees.......ahhhhhhhhhh paradise for sure.

leah_s Posted 25 Sep 2009 , 12:34am
post #21 of 25

You CAN use Joann's coupons online. Sign up for the email notifications and when you get those coupons you can use them for your online order.

CakeJediChic Posted 25 Sep 2009 , 2:18am
post #22 of 25

s a matter of fact, joanns has a 50% off one item coupon for online only! gotta love em!

brgrassmyer Posted 25 Sep 2009 , 2:21am
post #23 of 25

Boy, I was starting to doubt my $1.75 starting price per serving in BC and $2.50 per serving in fondant for tier cakes. My full sheet cake in BC sells for $75.
Just keep telling yourself that they are paying for YOUR TALENTS and SKILLS to make their cake special.

KHalstead Posted 25 Sep 2009 , 12:13pm
post #24 of 25

I know I know, gotta raise the prices. a 1/4 sheet costs me about $5.00 to make and less than an hour to decorate...so $15.00 profit isn't too bad.

Lita829 Posted 25 Sep 2009 , 5:25pm
post #25 of 25
Quote:
Originally Posted by brgrassmyer

Boy, I was starting to doubt my $1.75 starting price per serving in BC and $2.50 per serving in fondant for tier cakes. My full sheet cake in BC sells for $75.
Just keep telling yourself that they are paying for YOUR TALENTS and SKILLS to make their cake special.




My prices are very similar to yours. I charge $1.50/serving for buttercream. I mainly bake and decorate for fun (at the present time) so I am ok with not making a huge profit. Im fine as long as cost of ingredients are covered and a little extra to buy a new decorating tool. Most of the baking I do is given away instead of being sold. If I decide to make it a full time gig then I'll raise my prices. The only thing is that in the area I live, most people aren't willing to pay what custom cakes are worth. Sad but true.

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