odell319 Posted 29 Jun 2013 , 3:57pm
post #1 of

ADo you charge less if your a home baker?

48 replies
keepingitreal21 Posted 29 Jun 2013 , 4:26pm
post #2 of

NO, why would you? That's the problem with some new home bakers. I have been there and learned the hard way. Don't undersell yourself, your time is worth more than you think. Not to mention, when you undersell yourself, your undercutting a cake artist, bakery or decorator in your area that has worked hard to get established. I realized long ago that selling my cakes cheap was a disservice to them and myself. Since I was not selling cakes for a living, I was taking from someone who depended on that money to support a family or their business. Now I have my pricing where it should be and I'm not always the cheapest choice but my time is worth it. Either they will use me or they won't but I will feel good about my price the next day. HTH

 

P.S. Search for the jason_kraft profile. IMO he's like the pricing guru/rock star. In his signature line on his profile page (scroll to the bottom of the page) there is a link with pricing information. Also, CakeBoss software is a wonderful tool for pricing for the home baker. You will still need to do some research for your local salary for your skill level, input your local ingredient cost and there's a small learning curve. However, it's a start. Not to mention the legal side. But that's a different question. GL

IAmPamCakes Posted 29 Jun 2013 , 4:58pm
post #3 of

A^^ This. ^^

klan30 Posted 29 Jun 2013 , 6:43pm
post #4 of

No. In fact my prices are slightly higher.

jason_kraft Posted 29 Jun 2013 , 9:28pm
post #5 of

ACheck out the Pricing Formula link in my signature below.

kikiandkyle Posted 30 Jun 2013 , 1:46am
post #6 of

ADo you still have to pay for the property your bakery is based from? Do you still have to pay for gas/electric to bake your cakes? Insure yourself and your property? Buy equipment and ingredients? Those costs don't go away because your location happens to be a home rather than a store.

denetteb Posted 30 Jun 2013 , 3:47am
post #7 of

Another difference is that a larger bakery can get bulk pricing, a small home baker doesn't.  A larger bakery also can be more efficient, making large batches of icing, batter, larger ovens, etc so that they can be more efficient than a smaller baker.  So a small baker will likely have greater expenses in some categories.

madaboutsweets Posted 30 Jun 2013 , 3:51am
post #8 of

AI hate that I'm so bad at pricing and feel bad for overpricing even though it cost me lots

AZCouture Posted 30 Jun 2013 , 3:58am
post #9 of

A

Original message sent by madaboutsweets

....and feel bad for overpricing even though it cost me lots

said no one ever.

AZCouture Posted 30 Jun 2013 , 4:00am

AWhat gives you the.impression that you're overcharging? I mean, if you're pumping out star tip sheetcakes on aluminum foil covered boards at Sylvia Weinstock prices, then ok,but really, why do you think you're over charging? (I have no idea what kind of work you do, my example was pulled out of thin air)

madaboutsweets Posted 30 Jun 2013 , 4:05am

AI do lots of fondant I. Ok I guess cakes are normally a couple of tiers filled [IMG]http://cakecentral.com/content/type/61/id/3044841/width/200/height/400[/IMG]

madaboutsweets Posted 30 Jun 2013 , 4:06am

AThat's one I did and have to redo for a client with another ill show you

madaboutsweets Posted 30 Jun 2013 , 4:07am

A[IMG]http://cakecentral.com/content/type/61/id/3044849/width/200/height/400[/IMG]

AZCouture Posted 30 Jun 2013 , 4:11am

ANice work, but let's hear about why you think you're over charging. That's really probably not true. :-)

madaboutsweets Posted 30 Jun 2013 , 4:13am

AOk when it's family and friends is ay ok buy me the ingredients and ill do the rest..... Those two pics I'm charging for both 350-400

Sweet_Cakes Posted 2 Jul 2013 , 3:27pm

I'm not that great at pricing as of yet (no business yet...haven't had a chance to even work out a pricing sheet...working on research now) but I really don't think you are charging too much...as long as you are following Jason's formula, I think you should be fine. Do NOT ever think that you are not worth being paid for your beautiful work!

tina0719 Posted 16 Oct 2013 , 3:58pm

AI usually call local bakeries to see what they are charging just to get an idea. I am home based so I charge just a little less than the bakery would.

DeliciousDesserts Posted 16 Oct 2013 , 4:37pm

A

Original message sent by tina0719

I usually call local bakeries to see what they are charging just to get an idea. I am home based so I charge just a little less than the bakery would.

Why?

tina0719 Posted 16 Oct 2013 , 4:44pm

ATo see if I'm charging too little for a cake.

shanter Posted 16 Oct 2013 , 4:45pm

http://www.cakeboss.com/PricingGuideline.aspx

jason_kraft Posted 16 Oct 2013 , 4:49pm

A

Original message sent by tina0719

To see if I'm charging too little for a cake.

I think the question was why you charge less than a retail bakery just because you're based at home. If you find out what the market value is and then price yourself below that, you are charging too little for cake.

tina0719 Posted 16 Oct 2013 , 5:04pm

AI get my supplies dirt cheap and buy in bulk. I know someone who owns a cake supply store. I have no employees to pay nor do I pay the electricity. So even if I charge $20 to get the customer it wont hurt me.

tina0719 Posted 16 Oct 2013 , 5:04pm

AI meant $20 less

tina0719 Posted 16 Oct 2013 , 5:06pm

AI just found I get more business that's why I do it.

Stitches Posted 16 Oct 2013 , 5:08pm

Urg..............

jason_kraft Posted 16 Oct 2013 , 5:10pm

A

Original message sent by tina0719

I get my supplies dirt cheap and buy in bulk. I know someone who owns a cake supply store. I have no employees to pay nor do I pay the electricity. So even if I charge $20 to get the customer it wont hurt me.

It actually is hurting you (and the entire market) by lowering the perceived value of the product among your customers. Check out the "Pricing, Market Value, and Economic Damage" article in my signature below for more info.

tina0719 Posted 16 Oct 2013 , 5:11pm

AOk thanks I'll check it out.

shanter Posted 16 Oct 2013 , 5:59pm

Quote:

Originally Posted by tina0719 

I get my supplies dirt cheap and buy in bulk. I know someone who owns a cake supply store. I have no employees to pay nor do I pay the electricity. So even if I charge $20 to get the customer it wont hurt me.


Are you charging at least minimum wage for your time?

tina0719 Posted 16 Oct 2013 , 6:52pm

AI charge $5.00 per person plus the design price. I dont do any cakes less than 30 people.

tina0719 Posted 16 Oct 2013 , 6:53pm

ADesign price would usually start about $80

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