Am I Charging To Much ?

Decorating By Dejasnow Updated 13 Jul 2011 , 1:52am by Dejasnow

Dejasnow Posted 10 Jul 2011 , 6:04pm
post #1 of 10

the lady is the sister in law of a good friend of mine she wants the cake on the 22nd and got a hold of me last night. Im making her a 2 tiered sea shell cake top is a 6" and bottom will either be a 9 or a 10" . homemade frosting filling cake etc and the shells are all molded out of white chocolate. since its just a smaller tier cake i said $100. I think thats a fair price ... did i over charge ? she will be getting back to me soon and i really hope she has me do it ! thanks

9 replies
jason_kraft Posted 10 Jul 2011 , 6:18pm
post #2 of 10

To determine if the price is fair you first need to know your costs. Estimate the cost of the ingredients for the cake, the labor cost (# of hours required to bake and decorate * your hourly wage), and your estimated overhead cost (license fees, insurance, etc) on a per-order basis, then add 20-30% for a profit margin.

Luckily WA just implemented a cottage food law (I believe it's been signed but I'm not 100% sure) to allow cakes made from home to be legally sold, so your overhead costs should relatively low, you would just need to look into what the requirements are before you can legally accept money for the cake. Here in CA we are required to bake from a commercial kitchen so we have higher overhead, we would probably charge about $250-300 for that cake -- you'll have about 50 servings there so with the added labor for the shells it would be $5-6/serving.

Dejasnow Posted 10 Jul 2011 , 7:50pm
post #3 of 10

Yeah they did pass it but as far as I know it wont take affect for a few years . For friends and family i usually just make them from home for others and for business's i use the commercial kitchen. I figured i was charging to low but since im still starting out i keep prices a bit low.... I need to really sit down and figure that all out so that i can start having a decent price list going icon_smile.gif thanks for the info !

sillywabbitz Posted 10 Jul 2011 , 8:06pm
post #4 of 10

The cake boss software is a huge help in figuring out cost and expenses. It also helps manage orders etc. It was my first purchase when our cottage food bill passed this year.

JessiesCreations Posted 10 Jul 2011 , 8:14pm
post #5 of 10

When you look at the price by itself it may seem like a lot but when you break down everything you're doing, it will help put your pricing in perspective:

*'6' and 10' cake- Prepping, mixing, and baking
*Filling- Home-made
*Frosting- Home-made
*Molding the White Chocolate Sea-shells
*How long will it take you from start to finish??
*How much is your time worth?
*How much are you spending on the ingredients?
*Than add your profit margin

Good luck to you!

JessiesCreations Posted 10 Jul 2011 , 8:16pm
post #6 of 10

The cakeboss software looks great!

katj012 Posted 12 Jul 2011 , 7:53pm
post #7 of 10

I use the cakeboss software and LOVE it. Seriously - when I put in all my ingredients and time, I couldn't believe how much I should be charging for cakes!

TexasSugar Posted 12 Jul 2011 , 8:40pm
post #8 of 10

http://cakecentral.com/cake-decorating-ftopict-694973-pricing.html

A 6in round and 10in round would be 50 1x2x4in servings.

For me it would be at least $150 and possibly more depending on how many shells there actually was.

Cakeuhlicious Posted 12 Jul 2011 , 9:05pm
post #9 of 10
Quote:
Originally Posted by Dejasnow

Yeah they did pass it but as far as I know it wont take affect for a few years . For friends and family i usually just make them from home for others and for business's i use the commercial kitchen. I figured i was charging to low but since im still starting out i keep prices a bit low.... I need to really sit down and figure that all out so that i can start having a decent price list going icon_smile.gif thanks for the info !




Eff 7/22/11 (?)
http://apps.leg.wa.gov/documents/billdocs/2011-12/Pdf/Bill%20Reports/Senate%20Final/5748-S.E%20SBR%20FBR%2011.pdf

Dejasnow Posted 13 Jul 2011 , 1:52am
post #10 of 10

I'm sorry if my grammar was bad in my initial reply. I was flustered and typing quickly and I didn't pay attention. As I re-read it I see that I missed an entire sentence!. I received a private email about it and was first quite annoyed but once I read my own post I changed my tone. On a side note I want to thank you all for helping me with the cost issue, that is still the one problem I'm having but I am figuring it all out icon_smile.gif thanks again

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