Kyriosity Posted 10 Jan 2013 , 6:32am
post #1 of

Compared to prices for decorated cakes, I'm curious what folks charge for undecorated. I have a request for a bunch of simple layer cakes for an event -- lemon cake, berry filling, buttercream frosting -- and I am clueless about what to charge. Compared to decorated cakes, how should I go about pricing such an order?

 

Thanks!


~Valerie

22 replies
jason_kraft Posted 10 Jan 2013 , 9:15am
post #2 of

AWe price undecorated cakes the same as cakes with basic decorations.

Janani65 Posted 10 Jan 2013 , 6:45pm
post #3 of

My starting price for a simple 8" butter cream cake with a border is $25. I charge the same thing for an undecorated cake as well. 

Annabakescakes Posted 10 Jan 2013 , 8:25pm
post #4 of

AJanani65 you change about $1 a serving? How do you make any money?

I charge $2.75 for a simple design and for a dessert style layer cake, I charge $1.90 a serving, since I don't even smooth them.

Janani65 Posted 10 Jan 2013 , 8:37pm
post #5 of

It is the Price here. If I'm doing a custom cake I charge about $1.75 per serving. and double the amount for fondant.

FYI: My servings for a 8' is about 15 pieces from the 

Annabakescakes Posted 10 Jan 2013 , 8:42pm
post #6 of

AWow, how do you get an 8' cake through the door? Lol very few people go by party sizes, and those who do will eventually burn out. I don't know your skill level, but I suggest that if you are licensed, if it is required, start trying to raise the bar in your area. Those prices are terrible, and I wouldn't turn my oven on for $25 for a 24 serving cake.

Janani65 Posted 10 Jan 2013 , 9:07pm
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Hey my mistake 8" :)

Janani65 Posted 10 Jan 2013 , 9:11pm
post #8 of

I have thought so too... This pricing I learnt from an experience baker here. I hardly abide by. Her per serving price is $1.65. I'm doing a 3 tier birthday Cake today. I went by the wilton wedding cake serving size and charged per serving. Her cupcake is $1 and I charge $1.75 each. Was thinking I'm charging too much. Good to know I'm not. 

jason_kraft Posted 10 Jan 2013 , 9:22pm
post #9 of

A

Original message sent by Janani65

My starting price for a simple 8" butter cream cake with a border is $25. I charge the same thing for an undecorated cake as well. 

Have you calculated your hourly wage based on that price? For example, if the ingredients cost $10, overhead is $5, and your markup is 20%, you have $6 left for labor. So if you can complete the order in 30 minutes (including prep, baking, decorating, and cleanup) that's a respectable wage of $12/hour, but if it takes you 2 hours start-to-finish you are making $3/hour.

15 servings is about right for a party cake (which is what a single 8" round would usually be).

Janani65 Posted 10 Jan 2013 , 9:29pm

For ingredients it's cost me about $7. I'm doing from home. So, the only overhead I have is electricity. For everything I take about 1.30 hours. 

 

My initial price for 8" was $35 for 20 servings. When that lady told me She charges only $25 I got a little concerned. She is actually my teacher and she has been doing that for several years now.

 

Almost all the cakes I did were custom cakes which required a lot of work. So I have not actually charged this price from anybody. Pricing is still confusing to me. I learnt a lot from reading cakecentral forum. That is how I actually did my initial pricing. Any advice on pricing I will take with a lot of gratitude. And when I calculate pricing I pay me $10/hour. 

 

 

My cakes are here in the page if you'd like to see. www.facebook.com/Sugarmagiccakes 

jason_kraft Posted 10 Jan 2013 , 11:44pm

A

Original message sent by Janani65

So, the only overhead I have is electricity.

You are legally required to at least have a business license from your municipality. There is also the money you pay for an accountant (or accounting/tax software), money spent developing your web site, and advertising expenses. There's also business liability insurance...it's not a legal requirement, but it is dangerous to operate a business without one (especially a business where you sell food).

Janani65 Posted 11 Jan 2013 , 12:05am

AI checked with the Ohio health department, they assured I don't need license. However, I need to get the insurance. I need to account for advertising, that's something I forgot. I'm still starting out. So, website and the accounting software expenses are yet to come.

But I really need to get the insurance. I read in several posts in cake central about that.

-K8memphis Posted 11 Jan 2013 , 12:10am

why can't my county be like ohio

 

sigh

 

icon_biggrin.gif

 

if you have renter's insurance or home owner's it's as easy as a phone call to your ins agent

they might come take some photos no biggie at all

 

best of the best to you!!!

Janani65 Posted 11 Jan 2013 , 12:49am

AI have renter's insurance... Will call them first thing tomorrow morning... Thanks K8memphis... I was going around checking other insurance options... :-) just two months in the business... I must say everything I learned about the business, I learnt from cake central... When in doubt... Always check with cake central members... :-).

Sometimes even my husband asks me 'did you try asking cc members' :-).

lilmissbakesalot Posted 11 Jan 2013 , 12:56am

Liability insurance is very reasonable.  When I was working out of my home (licensed so no worries) I had a one million dollar policy and it costs under $300 for the year. 

jason_kraft Posted 11 Jan 2013 , 1:30am

A

Original message sent by Janani65

I checked with the Ohio health department, they assured I don't need license.

The business license is not related to the health dept license, anyone doing business in OH must register with the sec. of state and file for a business license. Check page 4 of the document below: https://www.ohiosbdc.org/DocumentMaster.aspx?doc=2462

lilmissbakesalot Posted 11 Jan 2013 , 1:39am

Yes... every state will require you have a business license to operate, even if you have cottage food laws.  All wheels must be greased after all... LOL.  Joking aside though, check with your secretary of state like Jason said.  Here in NH you can register right on line..

Kyriosity Posted 11 Jan 2013 , 6:00am

Sooo...business licenses aside, anybody got any more feedback on my original question? ;^)

 

~Valerie

-K8memphis Posted 11 Jan 2013 , 1:36pm

i can't remember doing an undecorated--oh yeah when someone wants to dumb down an order  to take the price down but just to get straight up undecorated--hmmm

 

i would charge very close to decorated cake price

 

lemon cake berry filling

 

quality ingredients all that labor

 

the easiest/quickest thing i do is decorate

 

alll that other stuff eats up the same amount of time

 

i'd take no more than 10% off my original prices and i would be grumpy about it (inside)

 

decorating is the fun you get to do after you go through everything to produce the cake

 

they should not mess with the fun factor

 

should charge them an extra 10%!!!  icon_lol.gif

-K8memphis Posted 11 Jan 2013 , 1:39pm

it's like asking a painter for a painting sans paint

 

oh well it is some money painters do have bills

 

but they don't have to like it!!!! icon_biggrin.gif

BakingIrene Posted 11 Jan 2013 , 2:32pm
Quote:
Originally Posted by -K8memphis 

it's like asking a painter for a painting sans paint

 

oh well it is some money painters do have bills

 

icon_biggrin.gif

I see it as a high compliment of my baking.  People who want that many cakes LOVE the cake itself enough to serve it as the primary dessert.  It also means they love YOUR cake so much that they won't get a commercial sheet or layers.

 

I wouldn't let such cakes out of my hands without a tiny shell border, but heck, if somebody wants to pay base price for that little decorating time, I won't complain.

lilmissbakesalot Posted 11 Jan 2013 , 7:26pm

Well... how long do they take you to put together?  If it's quick, I would definitely discount them some.  I'd think it would be like a kitchen cake (which is an undecorated tier to make up extra servings if you can't get there with the main cake without going way over).  When I was home I was charging $6/serving decorated and $4/serving for kitchen cakes.  They take no time to put together.  That's about a 30% discount. 

Kyriosity Posted 11 Jan 2013 , 9:00pm

My biggest cake compliment ever: In about 2007 the Ace of Cakes guys did the cake for a friend's business function. The next year, I did it. My decorating work was no where near the quality of Charm City's, but several people told me that my cake tasted much better! ;^)

 

Thanks for the feedback, y'all!

 

~Valerie
 

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