How Do I Charge For My Cakes

Decorating By cup cakes Updated 11 Oct 2010 , 2:18am by belladonnasmomma

cup cakes Posted 12 Apr 2010 , 6:04am
post #1 of 42

I have been doing cakes for friends nd family for free so far. (more like an advertising for me) and finally Im printing business cards. now my question is how much do I charge for them.
eg. I made a snowwhite cake with the wonder mold. whole body nd cape with fondant and the skirt with butter cream. it turned out pretty good. the colours were great as well.
now, how much can I charge for a cake like that? nd how many poeple can this cake serve?

41 replies
KarmaStew Posted 12 Apr 2010 , 10:25am
post #2 of 42

You're starting a cake business (yes, as soon as you charge for cake you're in business), with no pricing structure whatsoever, and not even knowing how to portion cake sizes?

Sorry to be so harsh, but you really need to do more market research and check out portion sizes and your own costs before you jump in.

leah_s Posted 12 Apr 2010 , 12:33pm
post #3 of 42

ditto. And you are legal for selling in your locality, right? Got your liability insurance?

kansaslaura Posted 12 Apr 2010 , 12:58pm
post #4 of 42

Do your own research--I have no idea what your costs are, what your market will bear--and don't forget all those pesky overhead expenses that come with running a legal business--licenses, taxes, rent, insurance, .. the list goes on and on..

jammjenks Posted 12 Apr 2010 , 1:27pm
post #5 of 42

This can't be serious.

KarmaStew Posted 12 Apr 2010 , 1:29pm
post #6 of 42

Not to mention all the stuff one uses every day.... paper towels, dish soap, laundry detergent, cake boards, electricity, marketing etc.

kelleym Posted 12 Apr 2010 , 2:05pm
post #7 of 42

My article on how to price your cakes:

http://tinyurl.com/lanq45

It's best to get your pricing structure and serving charts in place before you begin to take orders. That way if someone calls you, you won't just throw out a number that "sounds good", and end up kicking yourself later when you realize you've given the cake away for less than you spent on ingredients.

cfly Posted 12 Apr 2010 , 2:30pm
post #8 of 42

I don't understand why people freak out when someone asks a question about pricing. I myself do cakes as just a hobby and make a buck here and there. I don't feel I need a business license, storefront, and insurance if I do a couple of cakes per month.

-Tubbs Posted 12 Apr 2010 , 2:35pm
post #9 of 42
Quote:
Originally Posted by cfly

I don't understand why people freak out when someone asks a question about pricing. I myself do cakes as just a hobby and make a buck here and there. I don't feel I need a business license, storefront, and insurance if I do a couple of cakes per month.



Hoo, boy!!

cfly Posted 12 Apr 2010 , 2:40pm
post #10 of 42

And when I say as a hobby, I mean I've done a whole 14 cakes in one year and only charged for 2 of them. The others were gifts. But hey what do I know?

elliespartycake Posted 12 Apr 2010 , 2:46pm
post #11 of 42

cfly- I'm g;ad you don't "think" you need all that stuff for a "couple of cakes" a month. You health department might not like to hear that. What happens when someone at an event or party eats your cake and gets sick? Will the lawsuit that follows force you into bankruptcy??

These things need to be considered and the risks weighed. As so many have said here before selling cakes for $$$ is a business and needs to be treated as such. If the OP doesn't even know how many servings a cake will make or what her costs are why on earth would you go into BUSINESS??

cfly Posted 12 Apr 2010 , 3:00pm
post #12 of 42
Quote:
Originally Posted by elliespartycake

cfly- I'm g;ad you don't "think" you need all that stuff for a "couple of cakes" a month. You health department might not like to hear that. What happens when someone at an event or party eats your cake and gets sick? Will the lawsuit that follows force you into bankruptcy??

These things need to be considered and the risks weighed. As so many have said here before selling cakes for $$$ is a business and needs to be treated as such. If the OP doesn't even know how many servings a cake will make or what her costs are why on earth would you go into BUSINESS??



Well the people I have made cakes for are just my close friends and family. That would surely stink if they wanted to file a lawsuit against me.
But I do agree that trying to go into a business unaware of how many servings a cake has is silly. People tell me all the time I should go into a business doing cakes, but I know it entails way too much and envy the business ladies and gentlemen on CC. I was just saying it seems harsh when people get jumped all over in these forums constantly.

leah_s Posted 12 Apr 2010 , 3:02pm
post #13 of 42

You might also want to read thru this thread.

http://cakecentral.com/modules.php?name=Forums&file=viewtopic&t=675730&postdays=0&postorder=asc&&start=0
It's long, but def worth the read.

And cfly, if you're gettin' $, you're a biz.

kansaslaura Posted 12 Apr 2010 , 3:07pm
post #14 of 42
Quote:
Originally Posted by cfly

I don't understand why people freak out when someone asks a question about pricing. I myself do cakes as just a hobby and make a buck here and there. I don't feel I need a business license, storefront, and insurance if I do a couple of cakes per month.




Why should those of us who take the legal, inspected route be expected to answer questions of those of you who choose to do it under the table, not incurring the expenses, time and frankly frustration involved in operating a store front? If you want answers, seek them out yourself and don't expect us to hand you our knowledge and experience free of charge.

cfly Posted 12 Apr 2010 , 3:14pm
post #15 of 42

All I'm saying is don't reply instead of jumping down people's throats. Sorry I'm not going to get a storefront for 2 cakes a month, if that!

kansaslaura Posted 12 Apr 2010 , 3:37pm
post #16 of 42

Fine, don't get a shop, entirely up to you. But if you're fine with that, be fine with the answers you will get when asking for advise from those of us who do.

cup cakes Posted 12 Apr 2010 , 5:08pm
post #17 of 42

hey guys,
it was a question that really didnt need any rude answers. and the rest of you thanks for ur very valuable input. I do appreciate iticon_smile.gif

KarmaStew Posted 12 Apr 2010 , 5:10pm
post #18 of 42

You didn't get any rude answers.... just not the answers you wanted, so per automatic you think they're rude.

have a great day!

KristasKakes78 Posted 12 Apr 2010 , 5:28pm
post #19 of 42

Wow....I have just changed my opinion of cc.
I brag about it to everybody,and I am in total disbelief of how mean alot of your replys were.
I am a legal business and maybe some of the people asking questions aren't but they are just questions.
If our kids got jumped all over for asking a question at school,I bet they would never ask another one again.
That would be a terrible feeling for them,as it is at any age.

cup cakes Posted 12 Apr 2010 , 5:35pm
post #20 of 42

very well said kristasKakes78!!

KarmaStew Posted 12 Apr 2010 , 5:35pm
post #21 of 42

mean? Wow. I didn't think anyone was mean.... what i saw was business owners offering straighforward advice instead of babyhanding the OP. I think that the OP didn't get the answers she was looking for and is now sulking a little bit.

But mean, naw.

KristasKakes78 Posted 12 Apr 2010 , 5:45pm
post #22 of 42

hmmmm,so saying that somebody is sulking is a nice thing???
I guess because I run a daycare and worry about the kids feelings,I would never jump down some ones throat for asking a question.
There are no stupid questions,we are all learning as we go.

indydebi Posted 12 Apr 2010 , 5:51pm
post #23 of 42

Mean? cfly accused CC'ers of "jumping down some people's throat". I didn't see that at all. The OP asked a legit question but was omitting some key information that would enable others to help with the answer (location, market, their costs, etc.). CC'ers suggested the OP needed to do some add'l research in his/her own market area before CC'ers could offer some advice.

cfly is the one who came back pretty snotty and "jumped down people's throat". And she didnt even have a dog in this fight.

My children are welcome to ask me any question they want, but when they get a smart mouth on them, by telling me they don't NEED to know math or follow the rules or accept the advice I am giving them whether they like it or not because they dont like being told that what they are doing is wrong, then I guess my kid WOULD think I was "the meanest mom" because I "jumped down their throat."

But this too they shall outgrow! icon_wink.gif

Quote:
Originally Posted by cfly

Well the people I have made cakes for are just my close friends and family. That would surely stink if they wanted to file a lawsuit against me.



Dont kid yourself .. it happens all the time. My aunt sued her son when she slipped on his icy sidewalk. Her logic? Hes not paying it .. the insurance company is! I was in a car wreck when I was 16. My high school friend was driving. Her insurance company refused to pay for my 10-day stay in the hospital and for the surgery I had so my parents had to sue to get the bills paid.

Dont even kid yourself .. yeah it would stink. But it happens every day

KarmaStew Posted 12 Apr 2010 , 5:52pm
post #24 of 42

Saying she's sulking is not necessarily mean, it's just my opinion, and my opinion shouldn't mean jack to anyone else but me. And yes, while there certainly are plenty of stupid questions out there, no one said that the OP's question was stupid. And no one jumped down her throat. people gave her advice, but I guess it wasn't the advice she wanted to hear, or had planned on hearing.

paulstonia Posted 12 Apr 2010 , 6:56pm
post #25 of 42

Sorry guys, I'm a hobby baker, but if you come into the business forum and ask a question like that, of course that's the answer you gonna get. These gals worked hard to get there business going and profitable. You wouldn't walk into a resteraunt and ask for there recipes or to look into there books to see how they manage there places. If you are honestly thinking of opening a business there is a lot of research your going to have to do, no one can do it for you, at least they aren't going to do it for free. Get on the phone, call the bakeries in you area, see what there are charging per serving, you can go on the wilton sight and find how many servings there are in there pans. It's not rocket science but it does take a little research.

Loucinda Posted 12 Apr 2010 , 7:01pm
post #26 of 42

For some, they do not realize what is involved in having a business. They have made a few cakes, and have been told by friends/family that they should go into business. For a lay person, they have NO idea what is required by law or needed....and to them, this would be a "logical" place to start looking at that.....a cake site, with a "business" section. There are many on here who give wonderful advice, and there are some who come across harsher than others. The good advice far outweighs the bad, and I hope you can take away the important stuff and leave the parts that seem to have attitude behind. thumbs_up.gif

I suggest calling your local health department and seeing what is required there to start. In Ohio, we have it a lot easier than most states....and some are a lot stricter. Good luck!

cfly Posted 12 Apr 2010 , 8:37pm
post #27 of 42

Maybe "jumping down people's throat's was the wrong choice of words. I just saw one of the earlier posts "this can't be serious" as a bit harsh. That person could have just not replied, I felt that unnecessary. And I was not being "snotty" indydebi, I'm sorry that's the way you took it.

jammjenks Posted 12 Apr 2010 , 9:10pm
post #28 of 42
Quote:
Originally Posted by cfly

Maybe "jumping down people's throat's was the wrong choice of words. I just saw one of the earlier posts "this can't be serious" as a bit harsh. That person could have just not replied, I felt that unnecessary. And I was not being "snotty" indydebi, I'm sorry that's the way you took it.




That was my post and it actually was not as harsh as the health department would be to someone selling cakes under the table.

JanH Posted 12 Apr 2010 , 9:13pm
post #29 of 42

..moving to Cake Decorating forum.

dalis4joe Posted 12 Apr 2010 , 9:18pm
post #30 of 42
Quote:
Originally Posted by hafeela

I have been doing cakes for friends nd family for free so far. (more like an advertising for me) and finally Im printing business cards. now my question is how much do I charge for them.
eg. I made a snowwhite cake with the wonder mold. whole body nd cape with fondant and the skirt with butter cream. it turned out pretty good. the colours were great as well.
now, how much can I charge for a cake like that? nd how many poeple can this cake serve?




Hi Hafeela:

That's good that your cakes are coming out so nice that your close fam. & friends think u should go into business...
My advice to you would be to first look at either

Wilton
http://www.wilton.com/cakes/making-cakes/baking-wedding-cake-2-inch-pans.cfm

or

Earlenes Cake Serving Chart
http://www.earlenescakes.com/ckserchart.htm

and start by getting familiar with the servings...

As far as pricing... unfortunatly there are many factors that go into pricing your cake as stated in some of the replies... like ingredients, materials, labor, local market pricing, etc...

Now, you should call your local health dept. or dept of Agriculture to find out about permits, etc...

Good Luck and please don't take the comments personal... it's very hard to get a legal cake business from home and sometimes when we are trying to convey this to tohers... it might not come off as nicely as it should... but feel free to ask away... as you see in cake central's home page this site is meant for proffesionals as well as hobby cake decorators...

Have a Nice Day
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