Cake Boss Question

Business By Bridgette1129 Updated 13 Mar 2012 , 3:37am by Bridgette1129

Bridgette1129 Posted 12 Mar 2012 , 12:34am
post #1 of 6

So I was watching the order video and once you plug in your recipes and labor it comes up with a suggested price. Is this price just labor + materials + ingredients or does it add in profit?

If so, what % profit does it add? If not, how do you add profit? Thanks!

5 replies
elliespartycake Posted 12 Mar 2012 , 1:30am
post #2 of 6

When I use Cakeboss I add profit by bumping up my hourly wage amount. I am a licensed residential kitchen and have no employees so maybe my situation is different than yours. I also bump up some of my ingredient/supplies cost to factor in the time I spend shopping for them or placing the orders online.
The computer program does not add in an amount for "profit". You have to factor that in. Be sure to give yourself a generous hourly wage amount. Don't give yourself away.

Bridgette1129 Posted 12 Mar 2012 , 2:06am
post #3 of 6
Quote:
Originally Posted by elliespartycake

When I use I add profit by bumping up my hourly wage amount. I am a licensed residential kitchen and have no employees so maybe my situation is different than yours. I also bump up some of my ingredient/supplies cost to factor in the time I spend shopping for them or placing the orders online.
The computer program does not add in an amount for "profit". You have to factor that in. Be sure to give yourself a generous hourly wage amount. Don't give yourself away.




Thanks! I wish there was a way to add it in automatically.

sillywabbitz Posted 12 Mar 2012 , 5:45pm
post #4 of 6

I do think that it figures the suggested price by calculating cost plus hourly wage. I then manually adjust my per serving price to get the profit I'm looking for.

On the other thread about pricing, we talked about pricing by levels so it's easy for me to set the "per serving" price for an order after I put in my costs.

jason_kraft Posted 12 Mar 2012 , 5:55pm
post #5 of 6

Depending on what price your local market will support, all you have to do is multiply the suggested price by (for example) 1.2 for a 20% profit margin.

Bridgette1129 Posted 13 Mar 2012 , 3:37am
post #6 of 6
Quote:
Originally Posted by jason_kraft

Depending on what price your local market will support, all you have to do is multiply the suggested price by (for example) 1.2 for a 20% profit margin.




Yeah I'll just start doing that. Thanks. I love this software so far.

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