Help On Pricing For A Cake (Pic)

Decorating By mgm32837 Updated 23 Sep 2010 , 10:43pm by Ruth0209

mgm32837 Posted 19 Sep 2010 , 9:36pm
post #1 of 58

i would like to know how much an estimate would be to charge for this cake. the client wants 1 cake chocolate and the other vanilla, with strawberry filling.




i cant add a pic but if you go to www.simply-sweets.com and the last picture at the bottom with the pink and brown polka dots is the cake my client wants..

57 replies
jason_kraft Posted 19 Sep 2010 , 11:48pm
post #2 of 58

You can start by adding up your expected ingredient costs and the number of hours you think it would take to bake the cake and make that design multiplied by a fair hourly wage (we use $20/hour). Then add your annual overhead costs (commercial kitchen rental, liability insurance, etc.) divided by the number of cakes you make per year. That will be your break-even point on the cake.

From there, add a markup of 30% or so (that's the net profit to your business) and see what you get.

mgm32837 Posted 20 Sep 2010 , 1:40am
post #3 of 58

i dont have overhead costs like insurance and stuff

jason_kraft Posted 20 Sep 2010 , 1:50am
post #4 of 58
Quote:
Originally Posted by mgm32837

i dont have overhead costs like insurance and stuff



If you don't have liability insurance, the first thing you should do on Monday morning is get some. Without liability insurance, you put all your personal assets at risk every time you accept compensation for any of your cakes. It is especially dangerous if you have a full-fledged web site advertising your products (as you do). State Farm is a popular insurer for businesses here, you should be able to get coverage for $200-400/year.

You will also need to rent a licensed commercial kitchen, as it is illegal in TX to bake commercially out of your home.

By the way, did you realize that you are using a stock photo of a Wilton cupcake stand on your home page, implying that you made those cupcakes when you clearly did not?

http://www.sugarburstsweets.com/index.html
http://www.amazon.com/dp/B000F5K3JI/?tag=cakecentral-20

cakeandpartygirl Posted 20 Sep 2010 , 2:16am
post #5 of 58

She might be allowed to do that if she lives in military housing because they have a different set of rules

cakeandpartygirl Posted 20 Sep 2010 , 2:19am
post #6 of 58

Although it would be good business practice to have insurance, it's a must these days!!!!

mgm32837 Posted 20 Sep 2010 , 2:42am
post #7 of 58

its a cake for a friend and i live on military housing, any other replies??

kelleym Posted 20 Sep 2010 , 2:53am
post #8 of 58

I would charge $4.50/serving for that cake, plus $20 for the booties on top.

jason_kraft Posted 20 Sep 2010 , 2:58am
post #9 of 58
Quote:
Originally Posted by cakeandpartygirl

She might be allowed to do that if she lives in military housing because they have a different set of rules



That's a good point...apparently the Army does allow some home-based businesses, but it sounds like you have to request authorization in writing, and local licensing requirements are "considered" for each request. OP should consider herself lucky that she has that option.

http://www.military.com/spouse/cf/0,,cf_other_home_based_army,00.html

To address OP's question though, until she gets liability insurance the safest price for the cake is $0.

costumeczar Posted 21 Sep 2010 , 1:24pm
post #10 of 58

He's right, though.

cakesdivine Posted 21 Sep 2010 , 2:15pm
post #11 of 58

I guess she pulled the cupcakes pic off her site, and I guess she removed a link to her site. I did notice that she says she delivers to others outside the army base. How is that legal if she is doing it from her home. I can understand being able to do it on the base due to the laws that govern military bases but to be able to sell to those off base should be illegal as the area she is servicing laws should mandate business trade right? I could be wrong, (and probably am) because I don't know the law in that respect. Nor did I know that it was legal on army bases to sell from your home here in Texas.

Hey Kelley, that is something we can use in our fight to make it legal! If those here in TX that are on military bases can do it from their homes AND are legal to sell not only on the base, but to others outside the base, then why can't we?....definitely food for thought!

costumeczar Posted 21 Sep 2010 , 2:26pm
post #12 of 58
Quote:
Originally Posted by cakesdivine

I guess she pulled the cupcakes pic off her site, and I guess she removed a link to her site. I did notice that she says she delivers to others outside the army base. How is that legal if she is doing it from her home. I can understand being able to do it on the base due to the laws that govern military bases but to be able to sell to those off base should be illegal as the area she is servicing laws should mandate business trade right? I could be wrong, (and probably am) because I don't know the law in that respect. Nor did I know that it was legal on army bases to sell from your home here in Texas.

Hey Kelley, that is something we can use in our fight to make it legal! If those here in TX that are on military bases can do it from their homes AND are legal to sell not only on the base, but to others outside the base, then why can't we?....definitely food for thought!




I'll bet if the links were all removed it isn't legal, but you should defintiely check into it if it will help make the cottage law pass!

cakeandpartygirl Posted 21 Sep 2010 , 2:26pm
post #13 of 58
Quote:
Originally Posted by cakesdivine

I guess she pulled the cupcakes pic off her site, and I guess she removed a link to her site. I did notice that she says she delivers to others outside the army base. How is that legal if she is doing it from her home. I can understand being able to do it on the base due to the laws that govern military bases but to be able to sell to those off base should be illegal as the area she is servicing laws should mandate business trade right? I could be wrong, (and probably am) because I don't know the law in that respect. Nor did I know that it was legal on army bases to sell from your home here in Texas.

Hey Kelley, that is something we can use in our fight to make it legal! If those here in TX that are on military bases can do it from their homes AND are legal to sell not only on the base, but to others outside the base, then why can't we?....definitely food for thought!




It is food for thought but at the same time I wouldn't want to ruin it for a person that has gone through all of the work to be allowed to do it from their home. I have a friend that is allowed to do it from her home on base but she isn't allowed to sell to anyone outside of the base.
Also we don't know for sure if you are allowed to do it on that particular base or any of them in Texas.

edited for clarity

scp1127 Posted 21 Sep 2010 , 3:10pm
post #14 of 58

I've watched the posts lately about getting on people for not being legal and others defending them and getting upset. But this is the business forum and blatant illegal questions asked of legal business owners is unfair to those who have done the hard work. People like me go to the business forum to learn from the more experienced business owners and others are on here to get started legally.

If you have an illegal pricing, etc, question, wouldn't it be better to post in General or Cake Decorating?, and to word it respectfully so as to not offend the legal owners? There, I have said it...

jason_kraft Posted 21 Sep 2010 , 3:19pm
post #15 of 58
Quote:
Originally Posted by FierceConfections

It's a good thing for jasonkraft that one doesn't need a license or insurance to be a tool.



If you feel the need to attack me personally, feel free to send me a private message, but unless you have something constructive to add to the discussion I would recommend refraining from posting publicly, as your posts in this thread reflect poorly on you.

Do you also think your avatar is a tool for giving people his honest feedback, or would you rather he just tell everyone they're doing a great job? icon_wink.gif

scp1127 Posted 21 Sep 2010 , 3:33pm
post #16 of 58

I find alot of good information even in the heated discussions, but I don't like to see people personally attacked.

jason_kraft Posted 21 Sep 2010 , 5:34pm
post #17 of 58

I'm sorry you feel that way, but I will not stop recommending that people make their businesses legal and protect themselves with liability insurance. You are free to ignore my posts if this offends you.

Quote:
Quote:

So perhaps in the future, you should consider private messaging members who you feel are in violation of the (Googled) law, and not call them out in public. You clearly don't like it, so why in the world do you think that they do?



I have no problem with you "calling me out" if you are addressing one of my arguments. What I do have a problem with is ad hominem attacks, as calling people names does not contribute positively to the discussion.

In the case of this particular thread, it seems OP certainly did care about at least some of my advice, as she removed the infringing pictures from her web site. I would edit my original post to reflect this but the edit button is no longer available for that post.

And of course I use Google when I am unsure of the facts relating to a topic I'm posting on, it's called doing research. icon_smile.gif

TattooMom25 Posted 21 Sep 2010 , 5:37pm
post #18 of 58

Wow...after all that back to the OP question:
I would add up all your ingredients, other materials, deliverly fee and then add "your time". Mark up accordingly if you need to or leave it at materials and time since it is for a friend.

FierceConfections Posted 21 Sep 2010 , 5:43pm
post #19 of 58
Quote:
Originally Posted by jasonkraft

In the case of this particular thread, it seems OP certainly did care about at least some of my advice, as she removed the infringing pictures from her web site.




Because you embarrassed her, and you obviously meant to do so. You could have sent her a pm telling her that you noticed her cupcake tower picture was not her's. But, no. Instead you chose to post links so that everyone could see.

Again, all signs point to tool.

I think my man Tim would agree.

jason_kraft Posted 21 Sep 2010 , 5:58pm
post #20 of 58
Quote:
Originally Posted by FierceConfections

Because you embarrassed her, and you obviously meant to do so. You could have sent her a pm telling her that you noticed her cupcake tower picture was not her's. But, no. Instead you chose to post links so that everyone could see.



You know what, you're probably right on that point...looking back on how I worded my post it was a bit harsh. As I stated before, I would have modified my post but the edit button is no longer available. I would have realized that was the crux of your point earlier if you hadn't spent so much time calling me names. icon_wink.gif

I'm used to posting on discussion boards that are a bit more (for lack of a better term) confrontational, so I will keep that in mind for future posts.

I apologize to the OP if I embarrassed her on the cupcake stand picture issue, it was not my intention.

cakesdivine Posted 21 Sep 2010 , 6:28pm
post #21 of 58

Okay getting back to the military base issue. In the reading it states that the commander must take into consideration the local laws regarding certain businesses and that the business must obtain local licenses (unless I read it wrong). A person in TX can NEVER run a food biz from their home, they just won't get the license even if the base says they are fine with it. Am I missing something here?

jason_kraft Posted 21 Sep 2010 , 6:37pm
post #22 of 58
Quote:
Originally Posted by cakesdivine

Okay getting back to the military base issue. In the reading it states that the commander must take into consideration the local laws regarding certain businesses and that the business must obtain local licenses (unless I read it wrong). A person in TX can NEVER run a food biz from their home, they just won't get the license even if the base says they are fine with it. Am I missing something here?



The final decision rests with the base command, so it's really up to them even if state law specifically disallows the license -- the base is outside state jurisdiction, so TX can't do anything as long as no sales are made off-base.

From my interpretation of the directive, the military is trying to encourage home-based businesses where feasible, so the consideration of local laws would probably come into play in the form of rules prohibiting commercial sales outside the base.

Of course the only people who can definitively answer that question are the base command.

jason_kraft Posted 21 Sep 2010 , 6:40pm
post #23 of 58

BTW, USAA offers business liability insurance, so you may or may not get a better deal than is available to the general public:
https://www.usaa.com/inet/ent_utils/McStaticPages?key=insurance_business

mombabytiger Posted 21 Sep 2010 , 6:51pm
post #24 of 58

For corn's sake, the woman asked how much she should charge for her cake. (One of the most common questions asked here).

We have well-paid law-enforcement officials who enforce laws. It is not our job nor our responsibility to chastise fellow members.

I don't care if she's baking cupcakes on the engine of her car. It's none of my business.

This business of "well, I did everything I was supposed to do so no one else is gonna get by with anything" is childish and small.

ginab922 Posted 21 Sep 2010 , 7:02pm
post #25 of 58

mombabytiger
Posted: Wed Sep 22, 2010 5:51 am Post subject:

--------------------------------------------------------------------------------

For corn's sake, the woman asked how much she should charge for her cake. (One of the most common questions asked here).

We have well-paid law-enforcement officials who enforce laws. It is not our job nor our responsibility to chastise fellow members.

I don't care if she's baking cupcakes on the engine of her car. It's none of my business.

This business of "well, I did everything I was supposed to do so no one else is gonna get by with anything" is childish and small.


thumbs_up.gif

jason_kraft Posted 21 Sep 2010 , 7:08pm
post #26 of 58
Quote:
Originally Posted by mombabytiger

It is not our job nor our responsibility to chastise fellow members.



Chastise, no. Inform, yes. If OP can drastically reduce her liability risk by spending 15 minutes on the phone and ~$300/year in insurance, that's something to address before worrying about pricing, as the overhead costs need to be factored in when you consider how much to charge for your products. Without liability insurance, your risk is much higher, and I'm not even sure how to begin quantifying the amount of money you would need to charge to offset that risk.

cakeandpartygirl Posted 21 Sep 2010 , 7:49pm
post #27 of 58
Quote:
Originally Posted by cakesdivine

Okay getting back to the military base issue. In the reading it states that the commander must take into consideration the local laws regarding certain businesses and that the business must obtain local licenses (unless I read it wrong). A person in TX can NEVER run a food biz from their home, they just won't get the license even if the base says they are fine with it. Am I missing something here?




Actually their licensing is with the base and not the state which of course falls under different statutes and they take into consideration the state laws but it never says that they have to follow it to the tee. It's like the state laws and the federal laws.

For example I did home daycare on different bases and I was not licensed with the states but with the base and I had to follow their rules. Although we lived in the states that we did we still fell under the rules of the CO (commanding officer) of the base. In fact the rules were more stringent than if I lived out in town.

cakesdivine Posted 21 Sep 2010 , 7:52pm
post #28 of 58

Gina, every post on an open forum is subject to scrutiny, it is just the nature of the beast. And most times the OP post will generate tangent threads that maybe don't answer the OP's question, but when posting in the BUSINESS FORUM those that are in business legitimately will frown upon those who haven't taken even the most basic of steps to understand the business with which they are entering. I don't mind those asking how to devise a price point. I get a little agitated with those who just out and out show a photo and ask what should I charge. There are just too many factors that play into devising one's price point! And if someone isn't even smart enough to realize that then they need to be enlightened. Those that ask "how do I" instead of "I need the answer quick" with no regard or even many times point of reference have no business IMHO being in business. DO YOUR HOMEWORK FIRST! then ask questions if needed. You will find that CC is very giving of information if you show you have respect of those who did "do everything they were suppose to do". Basically they didn't take the easy way and ask for things to be handed to them on a silver platter, they did the unthinkable...THEY WORKED FOR IT!

cakesdivine Posted 21 Sep 2010 , 7:54pm
post #29 of 58
Quote:
Originally Posted by cakeandpartygirl

Quote:
Originally Posted by cakesdivine

Okay getting back to the military base issue. In the reading it states that the commander must take into consideration the local laws regarding certain businesses and that the business must obtain local licenses (unless I read it wrong). A person in TX can NEVER run a food biz from their home, they just won't get the license even if the base says they are fine with it. Am I missing something here?



Actually their licensing is with the base and not the state which of course falls under different statutes and they take into consideration the state laws but it never says that they have to follow it to the tee. It's like the state laws and the federal laws.

For example I did home daycare on different bases and I was not licensed with the states but with the base and I had to follow their rules. Although we lived in the states that we did we still fell under the rules of the CO (commanding officer) of the base. In fact the rules were more stringent than if I lived out in town.




Okay that is understandable BUT were you allowed to advertise off base and offer your services to non-military families outside the base?

cakeandpartygirl Posted 21 Sep 2010 , 8:01pm
post #30 of 58

No, they either had to work on base or live on base.

But my friend that does cakes and lives in the state that doesn''t allow home bakers isn't allowed to sell to anyone off base. If I am correct it would be the same thing. I think that is where the confusion lies.

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