Cake Prices

Business By Jody130 Updated 29 Dec 2010 , 9:08pm by jason_kraft

Jody130 Posted 29 Dec 2010 , 7:12pm
post #1 of 3

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??

2 replies
TattooMom25 Posted 29 Dec 2010 , 7:20pm
post #2 of 3

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

jason_kraft Posted 29 Dec 2010 , 9:08pm
post #3 of 3

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.

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