Pricing For Add-Ons

Business By kats0916 Updated 31 Jan 2011 , 7:50pm by kats0916

kats0916 Posted 25 Jan 2011 , 5:50pm
post #1 of 7

How much do you charge for gumpaste bows, royal tiaras, etc?

Usually I would give a price for the entire cake and not break it down, but I'm going to be selling a "build-your-cake" menu to a kids birthday party biz and so have to come up with prices for each add-on. The biz also then must be able to mark it up, so how much do I discount?

6 replies
jason_kraft Posted 25 Jan 2011 , 5:56pm
post #2 of 7

Just like when pricing a cake, you should add up the ingredient costs for the item and the labor cost multiplied by a realistic hourly wage, then add 20-30% for your profit margin. Incorporating overhead (commercial kitchen rent, insurance, etc.) into the cost of an add-on is a little trickier but you can estimate by looking at the ratio of the ingredient + labor cost of the add-on to the ingredient + labor cost of a typical cake and adjusting the overhead portion of the cake accordingly.

HaydenSC Posted 25 Jan 2011 , 11:06pm
post #3 of 7

On top of our regular cake prices, we charge $17 for a 2 loop bow, $35 for a multi loop, $45 for multiple color multi loop bows, $20 + for tiaras (depends on how detailed they are), $15 for fondant bands, $10 for fondant dots.
Our 9 inch cakes are 4 layer and start at $30 for basic flavors, buttercream frosting.
I would imagine you would need to charge less for someone to be able to resell it. I would try to get them to tell you how much they would like to sell the cakes to the client for so you can make sure you are able to make a profit on it too! thumbs_up.gif

Annabakescakes Posted 25 Jan 2011 , 11:36pm
post #4 of 7
Quote:
Originally Posted by kats0916

How much do you charge for gumpaste bows, royal tiaras, etc?

Usually I would give a price for the entire cake and not break it down, but I'm going to be selling a "build-your-cake" menu to a kids birthday party biz and so have to come up with prices for each add-on. The biz also then must be able to mark it up, so how much do I discount?




I wouldn't discount at all. Your prices are your prices. If they want to mark them up, then that is their problem. I would have a REALLY hard time cutting my profit so that others can make some $$$ on my hard work.

jason_kraft Posted 25 Jan 2011 , 11:47pm
post #5 of 7
Quote:
Originally Posted by Annabakescakes

I wouldn't discount at all. Your prices are your prices. If they want to mark them up, then that is their problem. I would have a REALLY hard time cutting my profit so that others can make some $$$ on my hard work.



Depends on the situation. For one-time orders I wouldn't discount, even if the order is very large, but if you can get a reliable wholesale partner with orders every week/month it might be worthwhile to sell for less if you have idle capacity.

leah_s Posted 26 Jan 2011 , 1:40pm
post #6 of 7

I try to keep is simple. A topper whatever it is, flowers, dressmaker style bow, package style bow, whatever is $40.

And when I have had a wholesale account, ordering cakes every week, I discounted 10%, only because I knew I could count on having that order. In the log run, having to do that order week in and week out and deliver it a few blocks away became more of a hassle than it was worth.

kats0916 Posted 31 Jan 2011 , 7:50pm
post #7 of 7

Thank you! I appreciate the help!

Quote by @%username% on %date%

%body%