I'm doing a cake for 150 people at $4 dollars a person. 3 tiered topsy turvy cake with fondant decorations. No piping or figures. Does this seem like a fair average price. I'm also charging a $1 a mile for delivery.
To figure out whether that price works for you, you need to first calculate your costs. Add up your ingredient costs, labor costs, and overhead (rent, insurance, license fees, etc.) on a per-order basis, then add 20-30% for your profit margin.
I agree. Without knowing where you're located we can't even begin to fatham a guess. If you're in Alaska or Hawaii then that is way to low. If you're in a rural farm area (hours from any large city) then you're probably too high for what others are charging. But if you're not making a profit then you're definitely to low.
Is it the $4/person that is causing you concern? Or is it the $600 invoice you're going to give to the client?
I find that many are bothered by a large invoice, without considering its enough cake feed ONE HUNDRED FIFTY people. Its how math works so go with it!
I agree with Indydeb. Sometimes we need to get over our own personal perception of sticker shock.
I still remember the day about 3 years ago that my DD and I were in a local bakery getting 5 dollars worth of cookies. The woman next to us was order a big order, the lady asked for a $750 deposit. What seemed like a ton of money for cake was nothing to them. Boy, have I learned since then.