How Do I Know What To Charge For The Cakes I Do?

Decorating By AmyB123 Updated 22 Apr 2010 , 4:46pm by AmyB123

AmyB123 Posted 22 Apr 2010 , 3:00pm
post #1 of 7

I am doing 3 cakes for a birthday party on Saturday. One cake is a 3 layered german chocolate cake, a small simple decorated white cake, and a fondant covered decorated cake. I have the list of ingredients as well as the time I have already put into the decorations (they are by the way figurines of a man with a tripod camera taking pictures of an eagle in a nest in a dead tree with his small dog sitting next to him). I know I need to account for my time as well as ingredients but am confused as to what may be too much to charge...

6 replies
leah_s Posted 22 Apr 2010 , 3:41pm
post #2 of 7

Can I have some of those customers who are getting a cake on Saturday, this is Thursday and haven't even asked for a price yet?

AmyB123 Posted 22 Apr 2010 , 4:20pm
post #3 of 7

ahhhh thanks for the words of wisdom.......they are cakes for friends and we will work out the price on our own

KHalstead Posted 22 Apr 2010 , 4:35pm
post #4 of 7

basically, take the cost of ingredients, how much you want to "make" per hour and times that by hours spent to get a cost.

Say for instance you spent $50.00 in supplies and 7 hrs. on the cake (7X's oh.......$10.00/hr.)...your total charge would be $120.00 for the cake.

before I started "charging" for cakes I figured out the cost for my cakes this way....and then figured out the "average" for the cakes and figured out a cost per serving that's in line with businesses in my area (well, as in-line as I want to be......I'm actually over $1.00/serv. more than them but that's ok). When I first started charging I was "in-line" with area businesses and as I got better, my prices went up, the hours spent went my profit has increased!

indydebi Posted 22 Apr 2010 , 4:36pm
post #5 of 7
Originally Posted by AmyB123

I know I need to account for my time as well as ingredients but am confused as to what may be too much to charge...

Too much to charge? icon_confused.gif based on whose opinion? Let us know where your confusion lies so we can help direct you a little better. icon_wink.gif

As you move into the business side of caking, you need to set your pricing based on the cost of production. the cost is what it is. If folks prefer not to pay that, then walmart is available.

"Not everyone can afford me and that's ok."

As you move into the business side, remember you are not there to make friends, you are there to make money. Women, I'm sorry to say, tend to worry more about whether people will "like" them or if they will "be mad" over the price. Get over that thinking. You should worry about your profit, not their wallet.

that's not to say you should price yourself out of the market, which you can determine by lots of research. But taking an order that puts you in the red just so the other person will think you're a "great guy!" is NOT better than turning down the order.

"Not everyone can afford me and that's ok."

kelleym Posted 22 Apr 2010 , 4:37pm
post #6 of 7

Here's my advice. Pricing is tricky. It's a balancing act and requires market research so you know what your local market will bear. thumbs_up.gif

I saw a thread recently where a lady did a cake for a friend, spent 3 1/2 hours on it, and received a $20 bill in an envelope as a "thank you". Don't let this happen to you. thumbs_up.gif

AmyB123 Posted 22 Apr 2010 , 4:46pm
post #7 of 7

Thanks for the helpful replies. I know you have all heard this question before but I appreciate the time you took to give me your opinion.

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