I'm making a 10 inch square cake, covered in fondant with a fondant cross topper and flowers cascading from the cross to the cakeboard. It's a combination of the following two cakes.
I don't want to overcharge as it's for my friend, but she told me she didn't want to me to charge her less just because she's a friend. She is fair and wants to make sure she's paying me for my time as well as the cost of supplies. I've calculated around $40 - $45 for the cost of everything.
Your help would be so appreciated. I tend to feel guilty as I've just started out and I got totally screwed doing my last cake. Thanks!
A 10" square serves 50. Seriously, 90 cents per serving would be just fine if she'd ordered it back in the '70s.
We would probably charge in the $250-300 range for that cake.
BTW before you accept money for the cake you should make sure you are legally allowed to sell cakes made in your home kitchen. Some states allow this, but other states require a licensed and inspected commercial kitchen.
I just want to clarify, the cost of all the ingredients and the supplies to make the cake is around $40. I've been reading about the cost x 3 rule...or the number of servings and multiply by cost per serving.
Going by the multiply by 3 rule, then I should be charging $120 for this cake. I just wanted someone else's perspective.
Michellev I found that the 3X rule works for a lot of things; however it doesn't really help with cakes. I've found it's better to have a per slice price.
You said $40 covers the ingredients & supplies.... What about your rate per hour, Overhead - (lights, water, gas, electricity etc) Even if you're a home baker these still apply. Also your per slice charge depends on the area your in.
For example my range is $3-$6.50 per slice. And that's still low here most start at $4 or $5 a slice. I really agree with the price range Jason quoted between $250-$300 That is what I came up with before I saw his quote.
Now if you want to give your friend a discount even though she said not to then I would give no more than 30%. Charging $120 is giving her a little over 50% discount. And you would be charge approx $2 per slice for a fondant cake and that's not pricing the cross. Of course the final decision is yours...However, looking at your work you are robbing yourself.