Question About How To Calculate Hourly Wage

Business By tsal Updated 25 Nov 2009 , 3:01am by -K8memphis

tsal Posted 24 Nov 2009 , 3:37pm
post #1 of 34

Hi,

I was looking at the pricing matrix and I noticed that the amount per hour for labour is listed at $5.15. Where does that number come from? I'm curious because I'm considering starting a business and I'm looking at whether or not it would be profitable or not.

I made a cake on Saturday for some friends. It was a two-tier cake (7" on top and 10" on the bottom), fondant covered with a gum paste flower and piping. I calculated my material costs to be $32.50, and I worked a total of 9 hours on it. What would I charge? I'm only charging them materials, but if I were to go into business, what would I charge? You can see a couple of my cakes in my profile.

Also, opinions on whether or not you think I should go into business would be appreciated! icon_smile.gif I'm new at this so I'm not convinced I should do it or not. Do you think I have a shot at making it in this business?

33 replies
LaBellaFlor Posted 24 Nov 2009 , 3:41pm
post #2 of 34

I think the $5.15 an hour is used as an example, not an actual labor cost. Most people have a much, much higher labor hour. There is no picture showing.

tsal Posted 24 Nov 2009 , 3:44pm
post #3 of 34

The picture is in my profile. Sorry, i thought i uploaded it properly!

Adevag Posted 24 Nov 2009 , 3:47pm
post #4 of 34

Hi,
I can't see a picture, but as far as the amount of money you will charge per hour should be up to you. Would you really take a job for $5 an hour? I know I would not. Why would you set up a business making minimum wage? (or even less...)

sherrycanary62 Posted 24 Nov 2009 , 3:56pm
post #5 of 34

I havn't been able to see the pricing matrix as I don't have excel, and I am not sure when it was done but....

from 1997 to 2007 $5.15 was Federal Minimum wage...it has recently gone up...to $7.25 (lower in some states depending on restrictions).

LaBellaFlor Posted 24 Nov 2009 , 3:56pm
post #6 of 34

Now my next question is do you REALLY Want an honest answer about going into businees, cause I will give you one, and it will be honest. I don't want to be honest and helpful and then get bashed by another poster calling me rude. I personally liked to be told the truth, not what I want to hear.

11cupcakes Posted 24 Nov 2009 , 4:07pm
post #7 of 34

I like your cakes and think you could have your own business. But you need to do some research on business and build your portfolio at the same time. I think it would not hurt to work part time for some bakery first.

-K8memphis Posted 24 Nov 2009 , 4:12pm
post #8 of 34
Quote:
Originally Posted by LaBellaFlor

Now my next question is do you REALLY Want an honest answer about going into businees, cause I will give you one, and it will be honest. I don't want to be honest and helpful and then get bashed by another poster calling me rude. I personally liked to be told the truth, not what I want to hear.




Yes. I mean you can make it if you want to but if you're not sure if you want to...

But I mean the hurdles are great. You've got to be seriously driven and almost armor plated. You could be more casual about it if you can be legal from home though. Most of us cannot be legal from home so just depends on where you are on that issue.

LaBellaFlor Posted 24 Nov 2009 , 4:14pm
post #9 of 34

K8 I'm not asking you, I'm asking the OP.

Mike1394 Posted 24 Nov 2009 , 5:21pm
post #10 of 34

I wonder what Warren Buffet get an hour?

Mike

sherrycanary62 Posted 24 Nov 2009 , 7:20pm
post #11 of 34
Quote:
Originally Posted by Mike1394

I wonder what Warren Buffet get an hour?

Mike




More than I could ever dream of making in my lifetime...I'm guessing
lol icon_cry.gif

cylstrial Posted 24 Nov 2009 , 8:19pm
post #12 of 34
Quote:
Originally Posted by sherrycanary62



from 1997 to 2007 $5.15 was Federal Minimum wage...it has recently gone up...to $7.25 (lower in some states depending on restrictions).




That's exactly what I was going to say. $5.15 was the old minimum wage.

tsal Posted 24 Nov 2009 , 9:02pm
post #13 of 34

LaBellaFlor wrote:
Now my next question is do you REALLY Want an honest answer about going into businees, cause I will give you one, and it will be honest. I don't want to be honest and helpful and then get bashed by another poster calling me rude. I personally liked to be told the truth, not what I want to hear.


Yikes. I guess I got my answer. I took my pics down. They really are my first cakes and I have no training.

Thanks anyway.

LaBellaFlor Posted 24 Nov 2009 , 9:11pm
post #14 of 34

Actually, no, that wasn't my answer. I think you have very smooth fondant on your cakes, especially for just starting out. Getting smooth fondant is very difficult and you are very good at it. Second, I can't really tell if you are actually ready to sell cakes, cause the two cakes you show are not really showing a lot of decorating techniques to see if you have sellable cakes. Now a days with all the cake shows EVERYONE wants these over the top decorated cakes. And like another poster said in another thread, it is VERY different selling a cake to a friend or family memeber as oppose to a total stranger. With that said, you asked a business question and you will have business people answer that question, so you may not get a "Yes, your cakes are just as good as Duff,, GO FOR IT"!, which some people are looking for and that's why I ask if you wanted an honest answer.

tsal Posted 24 Nov 2009 , 9:24pm
post #15 of 34

Thanks for the clarification. icon_smile.gif It's hard to convey tone via posts, but I'm not being sarcastic. I could sit there and tell you everything that was wrong with both cakes (like the fondant appliques on my son's Sesame Street cake that were WAY too thick and still had some cornstarch on them when I took the picture!)

I definitely wasn't looking for a 'Your cakes are as good as Duff's' answer! I know that I'm far from that and I'm just looking at the business from the standpoint of profitability - I'm actually wondering if it's possible to make a good living at this and still have somewhat of a life on the side. The only person I know who does this full-time works 7 days a week. I'm not convinced that I would love doing this so much as a business because it is extremely labor-intensive and time consuming. I took my pics down because I'm not confident that they're really up to snuff in terms of the Cake Central community and I'm waiting for a cake that I'm truly confident of to post here.

Thanks again!

sherrycanary62 Posted 24 Nov 2009 , 9:29pm
post #16 of 34
Quote:
Originally Posted by LaBellaFlor

Actually, no, that wasn't my answer. I think you have very smooth fondant on your cakes, especially for just starting out. Getting smooth fondant is very difficult and you are very good at it. Second, I can't really tell if you are actually ready to sell cakes, cause the two cakes you show are not really showing a lot of decorating techniques to see if you have sellable cakes. Now a days with all the cake shows EVERYONE wants these over the top decorated cakes. And like another poster said in another thread, it is VERY different selling a cake to a friend or family memeber as oppose to a total stranger. With that said, you asked a business question and you will have business people answer that question, so you may not get a "Yes, your cakes are just as good as Duff,, GO FOR IT"!, which some people are looking for and that's why I ask if you wanted an honest answer.




I wish I could keep my mouth shut on this one..I really really wish I could...............

but its just disgusting..You asked if she wanted your honest opinion and since you didn't give it in that post I am assuming you were waiting for her to say yes, I want your honest opinion which she never did.

I am surmising that when somebody asks for honest opinions that is just your excuse to move in for the kill. Ever heard of If you don't have something nice to say don't say anything at all...apparently not.

disgusting disgusting disgusting

sherrycanary62 Posted 24 Nov 2009 , 9:43pm
post #17 of 34
Quote:
Originally Posted by tsal

Yikes. I guess I got my answer. I took my pics down. They really are my first cakes and I have no training.Thanks anyway.




tsal: I highly encourage you to put to repost your pictures...consider the source of advice and don't take it to heart. Use the resources available to you: profile, gallery, website, previous posts...to see if that person is really qualified to give an "honest" opinion...and in the end you are the only one who can decide weather you should do a business or not....But do repost your pictures!!! Take a look at my first cake...the gawd-awful one with the horrendous purple bow and red, yes red daisies...Its horrid and have been told that here, but I am not ashamed to have it posted...I learned a ton,ton, ton about cake decorating for that cake. I display it with pride icon_biggrin.gif

indydebi Posted 24 Nov 2009 , 9:44pm
post #18 of 34

tsal, put those pics back up there! I have some really god-awful cakes in my pics and I reference them all the time in posts to show "here's how NOT to do it!" icon_lol.gif I didn't see your cakes before you pulled them down, so in no way am I commenting on your work. What I want to share is that we learn from ALL the cakes on here .... not just the good ones. Plus as you post more and more of your cakes, you'll be able to see your progress, which is a really good feeling! thumbs_up.gif AND .... we are more harsh on our own cakes than everyone else will be. icon_redface.gif

You were being asked if you REALLY wanted to know (as a newbie, you may not be aware of this), but there have been threads in the past where people have asked for "the honest truth" about their cakes ... they were given good, constructive criticism to help them grow in the craft, and they got all ticked off and accused everyone of being mean and heartless. icon_confused.gif

Unfortunately, your request got painted with the same brush as those folks who SAY they want honest feedback, but what they really want is rainbows and puppy dog tail comments.

We are looking forward to seeing your work and watching you grow as a CC buddy!! thumbs_up.gif

LaBellaFlor Posted 24 Nov 2009 , 9:57pm
post #19 of 34
Quote:
Originally Posted by sherrycanary62

Quote:
Originally Posted by tsal

Yikes. I guess I got my answer. I took my pics down. They really are my first cakes and I have no training.Thanks anyway.



tsal: I highly encourage you to put to repost your pictures...consider the source of advice and don't take it to heart. Use the resources available to you: profile, gallery, website, previous posts...to see if that person is really qualified to give an "honest" opinion...and in the end you are the only one who can decide weather you should do a business or not....But do repost your pictures!!! Take a look at my first cake...the gawd-awful one with the horrendous purple bow and red, yes red daisies...Its horrid and have been told that here, but I am not ashamed to have it posted...I learned a ton,ton, ton about cake decorating for that cake. I display it with pride icon_biggrin.gif




Weren't you just on that thread about reading what is actually written, before responding and saying what a great idea that was? I never said anything negative about her cake, but I guess it's okay to jump on what I say, cause it's me. icon_rolleyes.gif

TexasSugar Posted 24 Nov 2009 , 10:05pm
post #20 of 34
Quote:
Originally Posted by tsal

....I'm actually wondering if it's possible to make a good living at this and still have somewhat of a life on the side. The only person I know who does this full-time works 7 days a week. I'm not convinced that I would love doing this so much as a business because it is extremely labor-intensive and time consuming...




Yes there are people that do this and make (I hope) good money at it. There are many business women (and men?) here that own their own shops and do this as their sole living.

The question you have to ask yourself is, is this just a hobby where you can do a cake when you want to do a cake, or is this something where you want to live and breathe cakes? Do you want to do a cake once a month, or do you want to spend every weekend baking and delievering wedding cakes?

Mike1394 Posted 24 Nov 2009 , 10:08pm
post #21 of 34

I never seen your cakes, and I'll give you an honest opinion. I dopn't care what your cakes look like. Can you market? Can you stand for 12 hrs a day? What do cakes in your area go for? Do you have 50,000 laying idle, or does your state allow home bakeries? Do you have small kids that will get in the way? Hubby?


Mike

Mike1394 Posted 24 Nov 2009 , 10:11pm
post #22 of 34
Quote:
Originally Posted by sherrycanary62

Quote:
Originally Posted by LaBellaFlor

Actually, no, that wasn't my answer. I think you have very smooth fondant on your cakes, especially for just starting out. Getting smooth fondant is very difficult and you are very good at it. Second, I can't really tell if you are actually ready to sell cakes, cause the two cakes you show are not really showing a lot of decorating techniques to see if you have sellable cakes. Now a days with all the cake shows EVERYONE wants these over the top decorated cakes. And like another poster said in another thread, it is VERY different selling a cake to a friend or family memeber as oppose to a total stranger. With that said, you asked a business question and you will have business people answer that question, so you may not get a "Yes, your cakes are just as good as Duff,, GO FOR IT"!, which some people are looking for and that's why I ask if you wanted an honest answer.



I wish I could keep my mouth shut on this one..I really really wish I could...............

but its just disgusting..You asked if she wanted your honest opinion and since you didn't give it in that post I am assuming you were waiting for her to say yes, I want your honest opinion which she never did.

I am surmising that when somebody asks for honest opinions that is just your excuse to move in for the kill. Ever heard of If you don't have something nice to say don't say anything at all...apparently not.

disgusting disgusting disgusting




That's a pretty nice answer. Fondant's nice, but the cakes don't offer a lot of different technique. What is wrong with that?

Mike

costumeczar Posted 24 Nov 2009 , 10:14pm
post #23 of 34
Quote:
Originally Posted by tsal


- I'm actually wondering if it's possible to make a good living at this and still have somewhat of a life on the side. !




No.

Well, it depends on what you mean by "Good living" and "have a life"

sherrycanary62 Posted 24 Nov 2009 , 10:15pm
post #24 of 34
Quote:
Originally Posted by LaBellaFlor

Weren't you just on that thread about reading what is actually written, before responding and saying what a great idea that was? I never said anything negative about her cake, but I guess it's okay to jump on what I say, cause it's me. icon_rolleyes.gif




The one and the same....but I owned it.

LaBellaFlor Posted 24 Nov 2009 , 10:20pm
post #25 of 34
Quote:
Originally Posted by costumeczar

Quote:
Originally Posted by tsal


- I'm actually wondering if it's possible to make a good living at this and still have somewhat of a life on the side. !



No.

Well, it depends on what you mean by "Good living" and "have a life"




icon_lol.gificon_cry.gificon_lol.gif

This is very true. Some of us choose to keep things at a minimum, because of wanting to "have a life", some just go full steam ahead and get very busy. That is a personal choice you have to make. I have 3 under 3 at home and choose to take on very few orders. It does allow me to brag up the "exclusive and personal service" and people love to hear that.

indydebi Posted 24 Nov 2009 , 10:21pm
post #26 of 34

ok, you two. take this one to a PM, would ya? icon_biggrin.gif

costume, that was a great post! "good living" vs. "having a life"! That is Profound Wisdom! thumbs_up.gif

costumeczar Posted 24 Nov 2009 , 10:22pm
post #27 of 34
Quote:
Originally Posted by LaBellaFlor

Quote:
Originally Posted by costumeczar

Quote:
Originally Posted by tsal


- I'm actually wondering if it's possible to make a good living at this and still have somewhat of a life on the side. !



No.

Well, it depends on what you mean by "Good living" and "have a life"



icon_lol.gificon_cry.gificon_lol.gif

This is very true. Some of us choose to keep things at a minimum, because of wanting to "have a life", some just go full steam ahead and get very busy. That is a personal choice you have to make. I have 3 under 3 at home and choose to take on very few orders. It does allow me to brag up the "exclusive and personal service" and people love to hear that.




The exclusivity thing is an excellent selling point icon_wink.gif People love to feel special.

LaBellaFlor Posted 24 Nov 2009 , 10:24pm
post #28 of 34
Quote:
Originally Posted by indydebi

ok, you two. take this one to a PM, would ya? icon_biggrin.gif

costume, that was a great post! "good living" vs. "having a life"! That is Profound Wisdom! thumbs_up.gif





icon_lol.gif

11cupcakes Posted 25 Nov 2009 , 2:14am
post #29 of 34

You can make a good living, but I am not sure about life on the side.It's one of the jobs you do 7 days a week.

-K8memphis Posted 25 Nov 2009 , 2:42am
post #30 of 34

never mind

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