Cake Prices Vary From Place To Place

Business By writersblock15 Updated 9 Apr 2012 , 11:46am by rosech

writersblock15 Posted 9 Apr 2012 , 1:13am
post #1 of 4

Cake and cookie pricing seems to be a very popular topic on these forums and rightly so. It takes a lot of thought to determine how much someone would and should pay for our baked goods, especially since we put so much time and expense into making them.

When someone asks how much they should charge for an XYZ cake, responses from other forum members should be taken with a grain of salt unless they live in the same area. I live 90 minutes away from New York City. An XYZ cake in my town would be 30% less than an XYZ cake made in NYC. XYZ cakes in the town next to mine are even cheaper because they were hit harder by the recession and unemployment and in the wealthy suburbs nearby, they would charge more. If I were to give pricing advice to someone on this forum who lives in Los Angeles or Hawaii and they followed it, they would probably be undercutting their sale since those two locations have a higher cost of living and bakeries charge more. Location matters and prices vary from city to city, state to state, and country to country.

For those here who have concerns about what to charge for a cake my advice would be to check other bakeries nearby and see what their price scale is.

3 replies
jason_kraft Posted 9 Apr 2012 , 1:31am
post #2 of 4
Originally Posted by writersblock15

For those here who have concerns about what to charge for a cake my advice would be to check other bakeries nearby and see what their price scale is.

That's one piece of the pricing puzzle, the other piece to consider is your costs and hourly wage, as well as what your target market is. For example, other bakeries in your area could be charging low prices that would result in you earning less than minimum wage and zero profit, or a bakery in a low cost of living area could be targeting a more upscale market farther away and have prices that would be out of reach for the local market.

scp1127 Posted 9 Apr 2012 , 7:06am
post #3 of 4

I agree with Jason. Your information gives only one small piece of a pricing structure. Actually, you cannot come up with your own structure from just this and to give that as an answer to pricing would be steering someone in the wrong direction.

There are many great threads on this subject and the question has been answered in great detail by me, Jason, and many other experienced business professionals. These answers are not dependent on local information, but a clear cut method used in all commerce. Some of us have slightly different processes to find the correct prices, but they all give the same results.

rosech Posted 9 Apr 2012 , 11:46am
post #4 of 4

Even after considering costs and profit, it is good to find out what others in the area are charging. Too low is not good. You wear yourself out for nothing. Too expensive may not be bad if there are people willing to pay. I intend to go door to door to find out what others are making and charging. Just so I do not wear myself out for nothing.

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