Newbie Help With Pricing

Decorating By platinumcakes Updated 16 Jan 2012 , 4:01am by platinumcakes

platinumcakes Posted 16 Jan 2012 , 2:59am
post #1 of 9

Hello, I am completely new to this, I recently discovered that I have an ease for baking and decorating.
But my dilema is how to price...I live in Hamilton Ontario and am close to Toronto.
Prices varie to both extent.
I recently made a 3D cake would like your imput on how much should I have would of charge for this.
Thank you
LL

8 replies
jason_kraft Posted 16 Jan 2012 , 3:05am
post #2 of 9

How long did it take you to make the cake, and how much did you spend on ingredients?

platinumcakes Posted 16 Jan 2012 , 3:24am
post #3 of 9

For the head time wise, I would say about 5 hours, and the body about 12 hours
Im figuring about 150, to 200 in product and supplies

goodiegoddess Posted 16 Jan 2012 , 3:27am
post #4 of 9

From the time you said it took you to make plus what you quoted for supplies, should be around $350.

How many people does the cake serve?

jason_kraft Posted 16 Jan 2012 , 3:41am
post #5 of 9
Quote:
Originally Posted by platinumcakes

For the head time wise, I would say about 5 hours, and the body about 12 hours
Im figuring about 150, to 200 in product and supplies



Add some padding time in for cleaning and you can estimate 20 hours of labor, at $10/hour that's $200. Add $200 in costs for products and supplies and you're at $400. Add a 20% profit margin and the price is $480.

Of course you would also need to take into account per-order overhead contribution to cover things like liability insurance, marketing, license fees, etc. And if the product/supplies cost includes reusable equipment you can estimate the usable life of the equipment and calculate how much to include in each order to pay off that equipment, this should reduce your cost and the final price.

platinumcakes Posted 16 Jan 2012 , 3:53am
post #6 of 9
Quote:
Originally Posted by goodiegoddess

From the time you said it took you to make plus what you quoted for supplies, should be around $350.

How many people does the cake serve?




There was 30 kids at the party and they could of all came for seconds..

platinumcakes Posted 16 Jan 2012 , 3:55am
post #7 of 9
Quote:
Originally Posted by jason_kraft

Quote:
Originally Posted by platinumcakes

For the head time wise, I would say about 5 hours, and the body about 12 hours
Im figuring about 150, to 200 in product and supplies


Add some padding time in for cleaning and you can estimate 20 hours of labor, at $10/hour that's $200. Add $200 in costs for products and supplies and you're at $400. Add a 20% profit margin and the price is $480.

Of course you would also need to take into account per-order overhead contribution to cover things like liability insurance, marketing, license fees, etc. And if the product/supplies cost includes reusable equipment you can estimate the usable life of the equipment and calculate how much to include in each order to pay off that equipment, this should reduce your cost and the final price.




Thank you so much, this helps

goodiegoddess Posted 16 Jan 2012 , 3:55am
post #8 of 9

I ment $350 for supplies/labour.

It's hard to tell from the picture the size of the cake, I usually charge by seerving.

platinumcakes Posted 16 Jan 2012 , 4:01am
post #9 of 9
Quote:
Originally Posted by goodiegoddess

I ment $350 for supplies/labour.

It's hard to tell from the picture the size of the cake, I usually charge by seerving.




Yeah was thinking that to, but varies from 2.00 to 8.00 around these parts..

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