Hi everyone!! Just wanted to share a web site that will help setting the prices for your cakes I found myself some customers that have a budget of 30-40 dollars for more than 40 guest!!! and this is how I show them that I DONT WORK FOR FREE!!! hope it helps God bless
They make some points, but I disagree with some of it too.
They talk about the cost of the cakes and profit, but they don't mention labor costs.
They also say and I quote "There is no one formula to use when pricing your cakes. Every area is different. However, as a cake baker, you must charge what you're worth."
Of course there is a formula. Your costs, plus your labor costs, plus how much profit you want to make divided by the number of servings the cake serves.
The mention of charging 3-4 times what the costs of the cakes is an old, not so great way of doing business, because it doesn't account for everything. The amount you spend to make the cake is usually the smallest number involved.
This page is little more than a thinly veiled ad for a series of "cake selling courses" on CD (check the link at the bottom of the "article").
Texassugar - inasmuch as I understand what you are saying, where you live does make a difference in what you charge. I live and work in NYC and all my costs of living and working are higher than many other parts of the country. What I find normal you would find staggering. What you find normal I would find impossible to live on. So that must be taken into consideration. I always say: find out exactly how much it costs you to prepare a cake and then find out what similar bakeries are selling for similar products!
Yes where you live does factor into what your cake costs and how much you can sell it for. Also if you bake from a cake mix or scratch, if you use premium or special ingredients or if you use store brands plays a part in the cost. Some people can buy and bulk while others can't/don't.
Which is why the general "what would you charge question" just can't be answered in a simple number because there are too many variables to the main factors of how you figure your costs, how much your time is worth and how much money you want on top of the two.