I'm just wondering how do you decide how much to charge for a cake? And do you give deals to people you know, or just keep it all business? I have a cake that I am making for the mom of my daugthers' friend, and I can't figure out what to charge her! It is going to be a pair of gumpaste high heels and the actual cake will be a shoe box (plus another plain, iced not decorated, cake to make sure there are enough servings for her guests)
Also, do you think that two, 2 layered, 9x13 cakes is enough for 60 people? I know the pan says that when it's 2 layers it's 45 servings (so 90 servings for 2 cakes) but those are usually pretty small servings.
I am relatively new to cake making, and like yourself, I had no idea what to charge people. When I first started, I offered to make anyone and everyones cakes, and generally these ended up being majorly at the expense of my own pocket, as I needed the experience.
I have made handbags for friends (please see my pictures) and was too scared to ask for what I probably should have done. What you have to remember to take into consideration is not only the cost of the cakes but also electricity, petrol to collect ingredients etc etc.
Now, if I was making this cake, I probably would charge about £90 (Thats in the uk). If I were you I'd find cake shops online and see how much they would charge for this cake, you'd probably be surprised at how much you could get, and if you use their prices as a guide, you know you are being fair. I hope this helps.
check out this topic on how to price a cake. There are tons of topics on how to post a cake, but this one in particular has a lot of information in one place so you don't have to keep going from one post to another.
As for discounts. I give a flat 10% discount to family (immediate and great aunts/uncles and two close friends) every one else pays my full price. I only do 4 cakes a year for free (no matter the size) for my nephews and niece, and they get to pick the design. If i do a free one any other time it's b/c I want to do it and i offer, not because someone ask.
There are a number of factors involved with the price. For starters, where you live.. start by checking local bakers (not the the grocery store) in your area. I called several and pretended to be a customer and asked how much they charged. Some have the info on their website.
Most people follow the wilton method which is the amount of serving stated on the pan. At least $3.00 per slice regardless where you live. In Virginia, I've seen where people charge as much as $5.00 a slice.. I thought this was extreme, but VA, MD, DC has a high cost of living. You would charge an additional amount for fondant, flowers etc. depending on how intricate the design is.
IndyDebi here on cakecentral has an article that speaks to this, unfortunatly I don't know exactly where it is on the site. There is also a formula in the business forum (I think) that helps you factor in the cost for your supplies (eggs, flour, cake boards etc.). It helps you factor out the cost per batch for each different recipe. I hope this helped.