How Much To Charge For These?

Decorating By Sherri2012 Updated 15 Aug 2012 , 3:42am by Sherri2012

Sherri2012 Posted 14 Aug 2012 , 7:17pm
post #1 of 10

I have been reading a lot of forum discussions about what to charge for cakes/cupcakes, et cetera. I have learned a lot from all of you so far. But, I am not sure about what to charge for something like in my photo. I would estimate there are 12 double layer filled pieces of cake there, ( 1x2x2 - 2x3x3) plus about 20 "cake ball" or bigger size fondant covered pieces and then smaller fondant pebbles. Thanks for your ideas!

I dont know how to post images, so if it doesn't work, Ill keep trying. icon_biggrin.gif

9 replies
Sherri2012 Posted 14 Aug 2012 , 7:21pm
post #2 of 10

Yay! It worked! icon_smile.gif - Wasn't too sure how to add an image. hehe

jason_kraft Posted 14 Aug 2012 , 7:55pm
post #3 of 10

Neat idea. How many hours do you estimate this cake will take you to complete?

Sherri2012 Posted 14 Aug 2012 , 7:56pm
post #4 of 10

Would 50 bucks, ( serves about 12 + a little extra) plus the cost of the basket be appropriate? Or is that too much?

I have lost jobs in other fields for ignorantly over bidding a contract and am super scared of doing that now-a-days with cakes. But, I have read a lot about cake pricing, and one of the worst things you can do for everyone in the business is undercharge.

Sherri2012 Posted 14 Aug 2012 , 8:02pm
post #5 of 10

Jason, I would say using already baked cake trimmings, it would take me 1.5 - 2 hours maybe to do each basket, if you count time mixing colors for fondant, et cetera. and adding texture to the rocks. ( I'm guessing that's how long it took) If I was doing a bigger order, maybe less time, because wouldn't have to re-do the fondant, just use more of it. ?

AZCouture Posted 14 Aug 2012 , 9:25pm
post #6 of 10

With all due respect madam, please don't post a basket of rocks on here and think we don't know any better.


Just kidding....that is so cool! Never seen something like that before. Very very realistic and unique! icon_smile.gif

jason_kraft Posted 14 Aug 2012 , 9:34pm
post #7 of 10

If it will take you 2 hours (don't forget prep and cleanup) you can add up your labor cost and ingredients, then add allocated overhead (insurance, license fees, utilities, etc.) to get your final cost, and add your normal profit margin for the price.

So if your wage is $15/hour and kitchen rent is $15/hour, ingredients are $20, and allocated overhead is $10, your cost would be $90. With a 20% profit margin the price would be $108.

If labor is most of your cost, make sure your labor estimate is accurate (and err on the side of it taking longer). If it takes you 3 hours, your cost would be $120 with a price of $144.

Sherri2012 Posted 14 Aug 2012 , 9:49pm
post #8 of 10

ACZ, hehe... thanks,

Jason, Thanks for your advice and time. Wow, that much? Do people really pay that much for stuff?

jason_kraft Posted 14 Aug 2012 , 9:53pm
post #9 of 10
Originally Posted by Sherri2012

Jason, Thanks for your advice and time. Wow, that much? Do people really pay that much for stuff?

If you are targeting the right market (people who will pay extra for quality) then they will absolutely pay that much.

If you look at your original estimate of $50, and using my cost estimates above, after deducting ingredients and allocated overhead you only have $20 to work with. Even if you assume your kitchen space is rent-free (which ignores the market value of the space), if the order takes you 3 hours you are only making $6.67/hour, that's below minimum wage. Plus your profit margin would be zero so no money would be accruing to your business.

Sherri2012 Posted 15 Aug 2012 , 3:42am
post #10 of 10

That makes a lot of sense Jason, Thank you! icon_smile.gif

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