I am starting to get a lot of people wanting me to make cakes for them, which is turning my hobby into a money making one. so here is my question...How do I know how to charge for a cake?! labor, materials?
any help would be great!
Run a search, your question is one of, if not THE most popular question asked on this site. Also check out the business section.
Google "cake central what to charge" The first 6 links are different threads on the issue.
Google 'cakeboss cake pricing software' and check out their FAQs on their website.
In summary NOBODY can tell you what to charge. You have to figure out your own costs, your overhead etc and come up with the prices you think are fair for your work. A little market research never hurt anyone, and of you're serious about making it a business, then a business plan is in order.
1. Find out if you can legally sell cakes in your area from your home kitchen or if you will need a rented commercial kitchen
2. Put together a business plan including what type of products you will make, who you will sell them to, and about how much it will cost to make them (including ingredients, labor, and overhead)
3. Add a profit margin to get your minimum sale price, then check that with market prices to see if you need to lower your price (which would require cutting costs) or increase your price
4. Put together a web site and implement advertising based on the marketing strategy in your business plan
thank you both very much! The link was very helpful