What To Charge?

Business By Chrissymp5331 Updated 4 Jun 2013 , 7:57pm by kikiandkyle

Chrissymp5331 Posted 3 Jun 2013 , 10:05am
post #1 of 13

I am new here. I am also new to the pricing of cakes. How much would you charge for a 10 and 6 covered in fondant with a fondant lamb on top and a fondant ribbon with a fondant bow and dot's? This cake is for this Sunday the 9th. The last cakes I have done my mom said I was more or less giving away for what I charged :-(  Thanks for any help you can give me. 

12 replies
rdjr Posted 3 Jun 2013 , 4:33pm
post #2 of 13

it really sepends on what your expenses are, there are a ton of forums about pricing her on CC, Where I am. I would charge $115.

rdjr Posted 3 Jun 2013 , 4:33pm
post #3 of 13

Correction*** $165, I forgot that the cakes are covered in fondant.

jason_kraft Posted 3 Jun 2013 , 4:37pm
post #4 of 13

ACheck out the Pricing Formula article on my blog (the link is below in my signature).

Chrissymp5331 Posted 3 Jun 2013 , 5:11pm
post #5 of 13

Thank you very much for answering. I figure I am up to about 47.00 just in ingredients for cakes, icing and fondant. This does not include things like crisco, vanilla and oil that are here already. I guess I need to sit down and make a set price chart. I have for the most part always been in the oven room, a little while decorating cakes, but as far as coming up with a price for something... Never have been very good at that. 

Cookie2807 Posted 3 Jun 2013 , 5:35pm
post #6 of 13

Sometimes it helps when you take the cost of all ingredients x 3 

In your case $ 47.00 x 3 = $ 141.00 plus Taxes ( if you run a business ) 

or calculate based on the servings , I use Wilton Chart as a guide each slice is 1" x 2" x 4"  ,each cake is 2 layers high ( approx. 4" total )   6 inch cake will feed approx. 12 people and a 10 inch cake will feed approx. 38 people  , you could  calculate per servings . 

for example  per serving $ 4.00 x 50 servings = $ 200.00

I hope this helps a little bit. 

Good luck 

jason_kraft Posted 3 Jun 2013 , 5:44pm
post #7 of 13

A

Original message sent by Cookie2807

Sometimes it helps when you take the cost of all ingredients x 3 

Multiplying your ingredient cost by a fixed number can work if the amount of labor is the same for all your products (for example, you sell the same product wholesale and make them in large quantities), of course the fixed multiplier would need to be calculated based on your own costs (3 will not always work). If you have custom cakes where the labor cost varies, using a fixed multiplier will result in overpricing for simple cakes and underpricing for complicated cakes.

Chrissymp5331 Posted 3 Jun 2013 , 5:55pm
post #8 of 13

Thank you. Guess I will have to just sit down and make a price chart up. Have been just winging it until now and I know I have given my work away the last cakes I have done. I will go by your x's 3 until I can sit and do the math to get a price per serving chart and a side chart for the extras per serving too. This is my sister in laws baby's Baptism cake and won't charge her quite full price but if someone asks I want a price for her to say she paid. Anyone else will get the full price. NOT the sister in law discount icon_smile.gif

denetteb Posted 3 Jun 2013 , 7:35pm
post #9 of 13

When you do your costs, you do have to include the shortening and vanilla and things already in your cupboard.  Also dowels/straws/support system, boards, box, etc, everything that goes into that cake.

SystemMod2 Posted 3 Jun 2013 , 10:54pm
post #10 of 13

A

Original message sent by denetteb

When you do your costs, you do have to include the shortening and vanilla and things already in your cupboard.  Also dowels/straws/support system, boards, box, etc, everything that goes into that cake.

If you search through the forums, there are literally hundreds of threads about how to calculate prices for cakes. Many outline exactly every last item that needs to be accounted for when pricing a cake...from 1/2 tsp vanilla to the light globes brightening your kitchen. I strongly urge you to search the forums.

There are also pricing matrices, and software programs available to buy to calculate cake prices.

I will remind members that soliciting for business for ones own pricing products in these forums is expressly prohibited.

howsweet Posted 4 Jun 2013 , 2:39am
post #11 of 13

Probably something like $335. It's important to know your costs, but you also need to find out what bakeries charge. It could be argued that it's unconscionable to charge less than what a bakery would charge for similar work. At the very least, it's not good business.

jason_kraft Posted 4 Jun 2013 , 2:53am
post #12 of 13

AI thought I had posted this before but I can't seem to find the post...if you need help with pricing, check out the article I wrote on my blog, it includes a formula that takes into account ingredients, labor, overhead, and markup: http://jasonkraftblog.wordpress.com/2013/05/14/the-magic-pricing-formula/

kikiandkyle Posted 4 Jun 2013 , 7:57pm
post #13 of 13
Quote:
Originally Posted by Chrissymp5331 

Thank you very much for answering. I figure I am up to about 47.00 just in ingredients for cakes, icing and fondant. This does not include things like crisco, vanilla and oil that are here already. I guess I need to sit down and make a set price chart. I have for the most part always been in the oven room, a little while decorating cakes, but as far as coming up with a price for something... Never have been very good at that. 

Unless you have an endless free supply of those items, they are costs too. 

 

As are licensing and insurance, if needed to be legal in your state. 

 

If someone asks what the cake would cost, let them know that you aren't in business yet so can't give them a price, but that you'll be happy to let them know once you are up and running. That is what I do whenever I'm asked about a cake I made for a friend. You never know who is asking you, they could work for the health department for all you know.

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