I'm new to the baking business, and need some help. Someone is asking, very short notice, for a 5 tiere chocolate and vanilla cake, to feed 300 plus guests. Im not sure how to price it, she can go either BC or fondant, and she wants flowers on it.
Any advice would be apreciate it.
In order to accurately price a cake, you need to first know the cost, which consists of ingredients, labor, and overhead:
- Figure out how much you pay for ingredients per unit, and how many units of each ingredient need to go into the cake.
- Estimate how many hours you will spend baking and decorating, and multiply that by the cost of your time in dollars per hour (this can range between $10-30/hour depending on area and skill). Don't forget to figure in delivery and setup time.
- Figure out how much you spend in overhead (liability insurance, business license, kitchen rental, etc.) and divide that by the number of cakes you make per year to get a per-cake overhead cost.
Add these three numbers together to get a rough idea of your cost for the cake, then add 20-30% for a profit margin.
and don't forget to add extra cost for short notice
and make sure they don't pay you with a check from Nigeria...CASH on the barrel- UP FRONT!