bakerfolife2 Posted 25 May 2013 , 1:49pm
post #1 of

ASo I am selling my first cake ;) I am baking a cross cake out of a 12x18x2 with buttercream and a raspberry filling. I have never prices cakes and really could use some help.. Is 35 to low. I obviously can't compete with Sams club or walmart. ;)

36 replies
leah_s Posted 25 May 2013 , 3:00pm
post #2 of

Nor do you want to complete with Sams Club or Walmart.  Unless you are Costco.

You baked 54 servings, so that's what you charge for.    I'd charge $216.  Seriously.

 

Also make sure that you are selling legally - have you tax accounts set up, have the inspection and Permits from either your local Health Depart or Dept of Ag, are OK with your zoning, have liability insurance, etc.

bakerfolife2 Posted 25 May 2013 , 3:23pm
post #3 of

A$216 seems outrageous to me, I wouldn't even pay that much for my cake and I am making it. I still am thinking between $35 to $40.

Norasmom Posted 25 May 2013 , 3:36pm
post #4 of

I made a cross cake that size, it was decorated with white chocolate clay roses and TONS of buttercream. I charged $70.

 

Leah has a point, if you kitchen is not legal you are not supposed to charge anything.

DeliciousDesserts Posted 25 May 2013 , 3:46pm
post #5 of

AThat may seem outrageous until you price everything. How much are your ingredients? How much time are you spending?

My 1/2 sheet is 11 x 15. A single layer not torted (about 2") is priced starting at $60. That does not include sculpting. To fill that same cake, sculpt it & decorate simply, would run about $120-159.

If it helps, think in terms of serving. A 1/2 sheet serves at least 50. At $30, you aren't even charging $1 per serving!

At $30, you aren't even making $10 per hour!

Original message sent by bakerfolife2

$216 seems outrageous to me, I wouldn't even pay that much for my cake and I am making it. I still am thinking between $35 to $40.

bakerfolife2 Posted 25 May 2013 , 3:48pm
post #6 of

AEverything is legal. Maybe I'll go more towards 60. Seems much more reasonable than $216. Thanks.

DeliciousDesserts Posted 25 May 2013 , 3:54pm
post #7 of

AJust to clarify, $60 is my starting price. I would be charging at LEAST $120-159 for a smaller cake.

Seriously, how many hours will you spend making this cake?

AZCouture Posted 25 May 2013 , 3:59pm
post #8 of
Quote:
Originally Posted by bakerfolife2 

Everything is legal. Maybe I'll go more towards 60. Seems much more reasonable than $216. Thanks.

Methinks this is a joke.

bakerfolife2 Posted 25 May 2013 , 4:13pm
post #9 of

AMe too don't these people have anything else too worry about...

AZCouture Posted 25 May 2013 , 4:15pm
Quote:
Originally Posted by bakerfolife2 

Me too don't these people have anything else too worry about...

No, you, you the joke. If you are serious, God help the established businesses in your area.

vgcea Posted 25 May 2013 , 4:17pm

ASpeechless. OP running a successful business is going to involve more than pulling a number from thin air. Sit down and do your homework.

bakerfolife2 Posted 25 May 2013 , 4:24pm

AWell the ingredients total less than $25 and I enjoy baking. This is just a side job as I am a college student. People really need to realize everyone is not made of money. Charging more than one hundred dollars for a cake that costs less than $25 to make is ridiculous. If that's what you are charging you are ripping people off...

jason_kraft Posted 25 May 2013 , 4:37pm

A

Original message sent by bakerfolife2

Well the ingredients total less than $25 and I enjoy baking. This is just a side job as I am a college student. People really need to realize everyone is not made of money. Charging more than one hundred dollars for a cake that costs less than $25 to make is ridiculous. If that's what you are charging you are ripping people off...

Ingredients are only one component of the total cost of the cake...you also have labor, overhead, and profit. Let's say all your overhead (including accounting fees, business license fees, and insurance) adds up to $20 per order (based on $1000/year and estimated volume of one order per week), and you spend 6 hours total making the cake.

If you charge $60 for this cake, your ingredients and overhead will be $45, leaving you $15 to pay yourself. This works out to a wage of $2.50/hour with zero profit margin.

Looking at a more reasonable wage of $12/hour, your cost would be $20 + (6 * $12) + $25 = $117. Add a 20% markup and your price would be $140.

vgcea Posted 25 May 2013 , 4:43pm

ANo, along with ingredients there's this little thing called overhead and another pesky thing called labor. Insurance and the bills to keep the lights on so the oven can bake your cake don't pay themselves. They come out of that "rip-off" price. Really, do your homework.

Original message sent by bakerfolife2

Well the ingredients total less than $25 and I enjoy baking. This is just a side job as I am a college student. People really need to realize everyone is not made of money. Charging more than one hundred dollars for a cake that costs less than $25 to make is ridiculous. If that's what you are charging you are ripping people off...

scrumdiddlycakes Posted 25 May 2013 , 5:05pm

Calling people ridiculous and accusing them of being rip offs is totally inappropriate. If someone can't afford a $100+ cake, then they can go to Walmart, and that is just fine. Some of us actually like to make a profit.

liz at sugar Posted 25 May 2013 , 5:20pm

It isn't a business owners job to worry about how much money their customers have or don't have to spend on cake.  It is their job to find customers who are willing to pay the prices they charge.

 

If you are trying to be the Robin Hood of cake, go for it - you will have a line out the door of people expecting the world from you on their meager budgets.  There is no shortage of people wanting stuff for free or close to it.  Let us know when you have burnt out, and decide to quit working for free.  Then you will appreciate the advice that is shared free of charge on this forum, from people with more experience than you.

 

Liz
 

DeliciousDesserts Posted 25 May 2013 , 5:24pm

AOk, we've seriously tried (in a kind manner ) to explain what really goes into pricing a cake.

The cost of the cake = ingredients (you say $25), overhead (rent, utilities, licenses, insurance), packaging (cake boards & boxes), labor (the Value you put on your time).

Certainly, you can price your cakes to just cover your costs. If so, please research what your cost really is.

DeliciousDesserts Posted 25 May 2013 , 5:27pm

AFurthermore, please try to understand our frustration. Many clients think exactly as you. They are appalled at the cost of a custom cake. I would hope that once they realized the true cost of a cake they would understand the value.

Be honest with yourself. How long, start to finish, will this cake take you? Shopping, mixing, baking, decorating, cleaning....

bakerfolife2 Posted 25 May 2013 , 5:27pm

AExcuse me but this cake is not that extravagant so I would be making a profit of $30. The customer is picking it up so I don't see the reason to scam people out of there money. I guess our society has become accustomed to scamming people out of their money...

belindaking Posted 25 May 2013 , 5:39pm

AAaaaand how much did you pay for your college books? They're just paper and ink. I could go out and buy a ream of paper and a jug of ink, pour it on... Voila, a book! Right?

AZCouture Posted 25 May 2013 , 5:44pm

ADon't feed the trolls! (I gave it a cracker, but am cutting it off now).:grin:

sixinarow Posted 25 May 2013 , 5:44pm
Quote:
Originally Posted by bakerfolife2 

Excuse me but this cake is not that extravagant so I would be making a profit of $30. The customer is picking it up so I don't see the reason to scam people out of there money. I guess our society has become accustomed to scamming people out of their money...

You said that the cost of supplies was $25 and you were going to sell it for $30...that makes your profit $5. A middle-schooler charges more per hour to babysit.

 

I understand wanting to give people a lower priced cake, especially if it is a simple design. But don't be the China of the cake world and do it by paying yourself less than minimum wage per hour that you work on this cake. If you want to give a "reasonable" price, add all the ingredients and make sure to pay yourself at least minimum wage for the length of time it takes you to bake and decorate. A lot of the experts that post on here are just that, experts. You wouldn't ask Michael Kors to sell you a $15 dress, so of course their time is going to be more valuable, because their skill level, experience and demand is at a higher level.

 

Also keep in mind that your state may not allow you to sell certain baked goods without a license and insurance, that adds into your cost as well.

 

Good luck, I hope you have a good experience with this and continue to bake, decorate and enjoy doing it!

DeliciousDesserts Posted 25 May 2013 , 5:53pm

AJust lost any respect.

Original message sent by bakerfolife2

so I don't see the reason to scam people out of there money. .

You either are not paying attention/reading or a seriously intellectually incapable of understanding basic math, are very delusional, or a troll.

Suggesting that our pricing (based on a great deal of research) is a scam is insulting.

/done with you!

liz at sugar Posted 25 May 2013 , 5:53pm
Quote:
Originally Posted by AZCouture 

Don't feed the trolls! (I gave it a cracker, but am cutting it off now).icon_biggrin.gif


But I've got one more cracker to give it . . .

 

OP:  Disregard my previous advice.  I am now going to advocate for all the new posters who want to give away their cakes for free.  GO FOR IT!  Don't even add on that $5.00 - just sell it for the cost of the ingredients.  Don't even add in your labor - why would you SCAM someone and charge them for your time when you love to bake so much??  That just wouldn't be fair!  Maybe you should even donate the icing, because the customer's just can't afford both the cake AND the icing - drop the price to $15, and you'll be able to sleep tonight.  (Hope you realize this is all sarcasm, but it seems like what you want to hear, doesn't it?)

 

Liz

bakerfolife2 Posted 25 May 2013 , 6:09pm

AHow much did i pay for my school books??? Zip zero, I got a full ride with KEES money so I pay for nothing.. Thank you very much

vgcea Posted 25 May 2013 , 6:37pm

A

Original message sent by bakerfolife2

How much did i pay for my school books??? Zip zero, I got a full ride with KEES money so I pay for nothing.. Thank you very much

Don't be an ignoramus. The fact that you don't pay doesn't mean the book doesn't cost anything. Someone-your beneficiary- still pays. Scholarships still depend on either government or private funding. Someone is paying, that's how 'free' money works. You can do whatever you like but don't come here to insult people who came to offer the help you ASKED for.

vgcea Posted 25 May 2013 , 6:41pm

ASuch a waste of a free ride. I have no idea what KEES is so shall I hazard a guess that qualification is need based rather than scholastic ability? Surely this cannot be the best and the brightest of the next generation.

Original message sent by DeliciousDesserts

Just lost any respect. You either are not paying attention/reading or a seriously intellectually incapable of understanding basic math, are very delusional, or a troll.

Suggesting that our pricing (based on a great deal of research) is a scam is insulting.

/done with you!

bakerfolife2 Posted 25 May 2013 , 6:42pm

APractice what you preach vgcea. I worked hard in school to get a full scholarship. I am not trying to insult anyone and if I did i apologize.

bakerfolife2 Posted 25 May 2013 , 6:44pm

AAnd KEES money is based on your gpa not just given to everyone.

vgcea Posted 25 May 2013 , 6:45pm

ACongratulations. Now run off and go bake some charity cakes. Some of us have businesses to run.

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