Pricing For Cakes

Decorating By MissKris Updated 4 May 2010 , 5:28am by JanH

MissKris Posted 3 May 2010 , 4:18pm
post #1 of 7

Hello everyone,

I am new to Cake Central and to cake decorating. I am currently taking the Wilton cake decorating courses and just started course 2. I have been practicing making cakes and cupcakes for friends and for my hubby to take to work. I have my first request for a cake and don't know a thing about pricing cakes. The request is for an 8" square cake. It is on the Wilton site (Vintage Celebration cake, with vines and grapes). Seeking anyone's suggestions about pricing for this cake. Any suggestions are greatly appreciated!
Thank you! icon_smile.gif

6 replies
makeminepink Posted 3 May 2010 , 4:40pm
post #2 of 7

Hi! Welcome to CakeCentral!!!! Let me tell you what I've observed when asking a pricing question. Many will ask if you will be doing this out of your home. Does your state allow that? Then they will tell you that you need to add up the cost of your ingredients and decide what you want to make per hour. Don't forget all the time you spend shopping, cleaning, etc. It's not an easy process and something I still struggle with myself. Some people will say that it doesn't matter where you live, but that's simply not true. You can charge like someone in DC if you live in a tiny town, but you may not have much business! icon_smile.gif It's just not an easy question to answer-- too many variables! Having said all that--- best wishes! CakeCentral is WONDERFUL!

MissKris Posted 3 May 2010 , 7:18pm
post #3 of 7

Hello makeminepink,

Thanks for your reply. I live in Ontario, Canada. I don't know about the restrictions, etc. for a home business here. I would really love to work towards having my own home business. This is something I have been wanting to do for a very long time. I had my first child this past October, so now I have extra motivation to make all her birthday cakes and other items for her school bakes sales, etc. Planning on taking as many courses as I can, to perfect the art of cake decorating.
Thanks again! icon_smile.gif

IrisOlive Posted 4 May 2010 , 2:24am
post #4 of 7

Hey MissKris,

I'm in Ontario too!

If you're looking to really get into the business, there are several things you should obtain.

http://www.ontario.ca/en/services_for_business/STEL02_039990 this is a place you can start with.

I know for sure that you need:

-Food Handler's Certificate
-Vendor Permit
-Income Tax Registration
-Business Registration

All of these things can be found on the Service Ontario site, or at least how to obtain them.

As for pricing, I usually try to go with how much per portion. You have training, so you could maybe start at $2.50 a slice. That's about how much I'm charging, and it might be in the low range, but it's a good place to start, and once you get better, begin to charge more. You may also want to think about a base rate for a simple cake with a shell border and an inscription, maybe 3 roses or something like that. Just a basic cake that begins your pricing. Anything above and beyond could be added to the price. For example:

-Colourflow thinger (haven't taken Wilton but I know that's a part of it) charge $5.00 (or however you see fit)
-Sculpted animals from modelling chocolate, hand painted $30.00

I'm sure you can see how it will vary, but it's good to have a list of what you can do, and a price associated with it. Keep it in your head, and when you quote a price, don't break it down for the customer! They'll nitpick everything. Just quote one final price. Ex. "Birthday cake that says "happy birthday Celia" plus a dinosaur sculpted from modelling paste and air brushed. cake is covered in fondant, serves 40 people: $145."

One thing for sure, is to not undersell yourself. It's the worst mistake you can make! Once you charge $1.50 a slice for one person, if they reccommend you, you'll end up charging the next person $1.50 and so on. Better to start high so they expect it.

Hope this helped!

leah_s Posted 4 May 2010 , 2:29am
post #5 of 7

The most important thing is to make sure those certificates, permits and registrations are in hand before you sell a cake. Because if you're not legal you really can't charge.

MissKris Posted 4 May 2010 , 3:50am
post #6 of 7

Thanks IrisOlive and Leah! Any information and suggestions are greatly appreciated! icon_smile.gif

JanH Posted 4 May 2010 , 5:28am
post #7 of 7

Moving to Cake Decorating.

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