So I'm fairly new at getting my business up and running and I'm having a tad bit of trouble getting my prices set in stone.
I know I need to take into consideration the prices of the ingredients and what not. But what do you add on for your hourly rate. If it takes you 3 hours to do a cake, do you add $8.00 an hour? More? Less? And is it higher than your local minimum wage or less?
Cakes are a side business for me. I keep my hourly rate around $22-25/hour. It doesn't make sense for me to use my time and make less than I would working at my regular job.
The going rate for cake decorators tends to be in the $10-15 range, depending on skill and the area.
Not sure why you would want to price your labor at less than minimum wage? Decorating a cake takes significantly more skill than flipping burgers or mopping a floor.
Check in the help wanted ads to see what the going hourly rate for bakers is in your area. I definitely would make your hourly rate higher than minimum wage.
It makes sense to me to be higher than minimum wage, but was an honest question. I didn't want to start my prices so high that I scare away potential customers