I'm starting out a side business and am having trouble figuring out what to charge clients. I make my buttercream and cake from scratch. I'd like some feedback on how you determine what to charge for different sized cakes. Thanks in advance for your help!
You can start out by figuring out what your cost is for a specific product, such as a tiered cake that serves 100 people. This cost will include your ingredients, your labor (hourly wage * time spent with prep, baking, decorating, and cleanup), and a portion of annual overhead costs. Then add a profit margin and see what you come up for a price. Once you have this price you need to look at your local market to see if it makes sense.
If you're going to start charging you should really look into the Cake Boss software. It truly clarifies your cost, time etc and helps you determine what you should be charging. It's $150 but CC members get 10%. It sounds like a lot of money when your starting out but getting your pricing right from the beginning is essential! Also it does order management, invoices, shopping lists...it's awesome!