Hi, just wanted to ask if anybody else is doing what I find myself doing every time I make a cake. I've been making cakes for about 5 months now, and when I first started I priced them at what I thought was a decent price. But now I find that when I'm making a price list for a request my prices keep going up. It's like I'm realizing exactly how much time I put into them. There is a difference between my first cake price and my latest one.
If you start out with a good idea of what your costs are your prices will be more stable -- this includes ingredients, packaging, labor (paying yourself a reasonable hourly wage of at least $10-15/hour depending on the area), and overhead. Even then, it's normal to increase prices regularly as your input costs increase due to inflation, our prices go up about 5% per year on average.
I've been making cakes for years. And even this year I'm having shock on how much ingredients are costing. I use real butter and Dominos 10x sugar for example.
I know everyone is stretching their dollar, but you have to watch your dollar too.
The constant client response I get, "I'm not paying that much for a cake."
I hear from some local decorators, "I don't think I'm making a profit, but they won't pay anymore."
So, I suggest you stay on top of your numbers and be realistic on what kind of money you want to make. There are decorators out there that like working loooong days for a few bucks. and this is where I refer those clients that want a 'good deal'.
and it doesn't help you with all those cake shows on tv!! everyone wants one of those cakes!!!
hang in there....you will figure it all out!!
I think as you get better you SHOULD charge more. I was starting out making royal icing covered cookies for $1 a piece and then stay up all night decorating, bagging, and tagging them. And this was when I had a full time job. I'm going up to $2 next time and if they don't want to pay, oh well, get the Keebler elves to make them!
Since you're really just starting out too I know it can be hard to charge a fair price for yourself when you know you are having sooo much fun baking but times are tough!