I'm very new to cake business, I am so unsure of what to charge people. i hate to over charge, but I feel that I have not been making any type of profit at all, I'm not a professional baker, but I do love to do it and have been getting lots of orders. Can someone give me a idea of how you figure your cost for your cakes??
Never ran a bakery but I owned many tanning salons. I would gather all my yearly costs (rent, equiptment, employees, electric/water, insurance, licensing, product, ect) add them all together and divide by 12. that will get you a monthly idea of your costs you need to cover. add in alittle more just to be safe. This is the bare minimum you need to cover every month. Then decide how many cakes you produce and go from there. Although I am sure your charge would vary from one type of cake to the next (someone with professional experience should answer that part) but at least you will know your expenses
Cost of cake = Cost of ingredients + (Number of hours spent making and decorating cake * your hourly "wage") + (Annual overhead costs such as insurance, advertising, and utilities / number of cakes made per year)
Price of cake (including profit) = 1.2 or 1.3 * Cost of cake
Not sure what state you're in, but if you sell cakes made in your home kitchen you should be sure your state legally allows this, most states require a separate commercial kitchen.