Markup And Food Costs

Business By StaceFaceCakes Updated 26 Feb 2013 , 5:45pm by Apti

StaceFaceCakes Posted 24 Feb 2013 , 5:08pm
post #1 of 10

Was just wondering how much everyone marks up their prices. I use the Cake Boss software and it marks up about 3 times...

9 replies
Izzy Sweet Posted 24 Feb 2013 , 5:10pm
post #2 of 10

I mark up 2.5 right now because of my area. It is still a nice profit for me.

jason_kraft Posted 24 Feb 2013 , 5:17pm
post #3 of 10

AMarkup over your true cost (including ingredients, labor, and per-order overhead) is typically in the 15-45% range. Pricing based on 3x ingredients only is not accurate since it does not take into account the labor required to execute a design, which can vary quite a bit.

-K8memphis Posted 24 Feb 2013 , 5:35pm
post #4 of 10

staceface, if you don't mind, i'd like to highjack your thread momentarily to complement you on that cake in your avatar


it is striking!


and a question, please


how did you do the cross hatch/latticy/web looking dealios under the killer flower?


if you posted a full picture of the cake please show me how to view it.





Apti Posted 24 Feb 2013 , 5:40pm
post #5 of 10
Originally Posted by StaceFaceCakes 

Was just wondering how much everyone marks up their prices. I use the Cake Boss software and it marks up about 3 times...

That's interesting because the CakeBoss software "how to price your cakes" article says: 

question:  I have read that a good way to price cakes is to charge for the cost of ingredients times 2 (or 3).

answer:  We firmly believe that the "ingredients times 2 or 3" method of pricing is arbitrary and not rooted in any kind of business theory.  In our experience, this method results in grossly underpricing your product.  The cost of the cake lies not in the ingredients, but in the labor invested."


Maybe you could ask the CakeBoss software folks?

StaceFaceCakes Posted 25 Feb 2013 , 6:07pm
post #6 of 10

Thanks guys! Just wanted to chat about this a little. The software does account for labor. I've been giving myself $15 an hour, which seems reasonable for my area, and taking into account overhead. With all the taken into consideration, it usually coming out to 3 times just checking with you all to make sure this software is a good way to go! Thanks!

StaceFaceCakes Posted 25 Feb 2013 , 6:12pm
post #7 of 10

K8memphis. Thanks for the kind words! I used the smallest wilton tip....maybe a 3 or a 1? sorry I tried to look for it, but couldn't find it....but it's royal icing and that tip and alot of patience! It's super easy but looks amazing. I grossly underestimated how long it would take to pipe over the cricut cut outs on this one...


StaceFaceCakes Posted 25 Feb 2013 , 6:14pm
post #8 of 10

This is the first time I experimented with royal icing piping....Next time I might do more detail and hopefully be a little cleaner on my lines.

-K8memphis Posted 25 Feb 2013 , 6:21pm
post #9 of 10

you have a great eye for design


lovely lovely cake!

Apti Posted 26 Feb 2013 , 5:45pm
post #10 of 10

Thanks for the additional info, very much appreciated.  Beautiful cake!!!

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