Pricing Question

Decorating By mudderteresa Updated 9 May 2011 , 2:45am by leah_s

 mudderteresa  Cake Central Cake Decorator Profile
mudderteresa Posted 9 May 2011 , 2:34am
post #1 of 3

im doing a 2 tier birthday cake 8 inch 6 inch double layer all buttercream with rubber duck on top and 24 cupcakes to match with wilton ducks on top that are a total of 16 bucks for the ducks alone. how much would you suggest i charge?

2 replies
 jason_kraft  Cake Central Cake Decorator Profile
jason_kraft Posted 9 May 2011 , 2:40am
post #2 of 3

Before you can set a price, you need to know what your costs are. A good rule of thumb is to add up your ingredient costs, labor costs, and per-order overhead costs (liability insurance, license fees, etc.), then add an additional 20-30% for your profit margin.

If you are baking out of a home kitchen, you should also check the laws in your state to make sure you can legally sell homemade food items. Some states allow this, but in other states you are required to build a separate kitchen on your property or rent a commercial kitchen (in which case you would charge $0 if you are not licensed/inspected).

 leah_s  Cake Central Cake Decorator Profile
leah_s Posted 9 May 2011 , 2:45am
post #3 of 3

Jason's correct. Before we can help you with pricing we need to know if you're a licensed kitchen, because the costs of licensing and insurance will be a factor in your retail pricing. Also, whether or not you can buy in bulk - I purchase flour, cocoa and vegetable shortening in 50# containers. That may make my pricing different from yours. I purchase all my fondant in 10# and 20# containers. Are you able to do that? Are you rural or urban? Is there a lot of competition in your area? There are more factors that go into pricing than just the cost of ingredients.

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