Price To Charge?? Thanks Ahead Of Time...

Business By soodles Updated 11 Apr 2012 , 2:31pm by MacsMom

soodles Posted 9 Apr 2012 , 2:58pm
post #1 of 9

http://cakecentral.com/gallery/2305002/baby-girl-shower-cake

I made this cake for my cousin's baby shower. I posted pics and now someone wants to order the same cake! I have done other cakes for people in the past, but now know I have grossly undercharged and don't want to make the same mistake! I was thinking $75??? I used boxed cake and mmf (store bought black fondant)
Thanks again icon_smile.gif

8 replies
MacsMom Posted 9 Apr 2012 , 3:26pm
post #2 of 9

Most bakers charge per serving. Find out what others in your area charge for a custom fondant covered cake and start from there, keeping in mind your level of experience and artisitc talent.

jason_kraft Posted 9 Apr 2012 , 6:54pm
post #3 of 9

How much did you spend on ingredients, and how many hours did you spend on the entire order (prep, baking, decorating, cleanup)?

soodles Posted 9 Apr 2012 , 9:48pm
post #4 of 9

I've costed $25 for all ingredients, boards, boxes, etc.. then I was thinking 5 hours to make at $10 an hour??? That's how I got $75. They are picking it up as well so I wasn't factoring in a delivery cost. I think the Wilton servings for this was 44. So $2 a serving would be $88. Maybe I should go $80?? Thanks for your replies icon_smile.gif

MacsMom Posted 9 Apr 2012 , 10:02pm
post #5 of 9

$2 per serving seems awfully low for fondant. Have you checked around for pricing at other bakeries?

If you find out that another baker charges $3 per serving for fondant (which still seems low), than you know if your friend thinks $88 is too much, she can't get the same cake for that price anywhere else...

jason_kraft Posted 9 Apr 2012 , 10:23pm
post #6 of 9
Quote:
Originally Posted by soodles

I've costed $25 for all ingredients, boards, boxes, etc.. then I was thinking 5 hours to make at $10 an hour??? That's how I got $75.



From there you need to add on your overhead and profit margin. For overhead, let's say your added utility costs are $500/year, liability insurance is $400/year, accounting fees are $200/year, business license is $50/year, and web site costs are $50/year, this totals $1200/year. If you fill one order per week, your per-order overhead costs are $24, so add $24 to your ingredients + labor cost and you get $99. (If your state requires a commercial kitchen to legally sell food you would also need to take that into account.) With a 20% profit margin your final price would be $119.

As said above you should check out the competition to see if this price seems reasonable. If not you can always adjust it up or down, just don't go under your ingredients + labor + overhead costs ($99 in the example above).

MacsMom Posted 10 Apr 2012 , 12:36am
post #7 of 9
Quote:
Originally Posted by soodles

I think the Wilton servings for this was 44. So $2 a serving would be $88. Maybe I should go $80?? Thanks for your replies icon_smile.gif




Also, make the customer knows it should feed 44. Those are 1x2" slices, if it's Wilton's wedding cutting guide. If she wants a smaller or larger cake--or larger slices--adjust the pan sizes. (This is why per/serving is the most popular pricing).

soodles Posted 11 Apr 2012 , 1:57am
post #8 of 9

Thanks all.. I msg a couple of local bakeries.. the one reply I got charges $5.50 a serving for fondant, and I gave her a pic of the cake.. she said she'd charge $150 (and that was if the 8' and 9' were only 1 layer!) So I know for sure $75-$80 is too low!!!! Looking around here I guess I'm in the same boat as a lot of you.. feeling bad charging so much money!!! And for something I just love to do! The best part for me is hearing the praises and how much everyone loved the cake icon_smile.gif

MacsMom Posted 11 Apr 2012 , 2:31pm
post #9 of 9

icon_biggrin.gif Yay! I love feeling like the architect of cake, and how proud I am of some of the creations I somehow manage pull off... It makes it easier to brush off some of the "Oop's!" that have happened.

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