ADo you charge less if your a home baker?
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
A^^ This. ^^
No. In fact my prices are slightly higher.
ACheck out the Pricing Formula link in my signature below.
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.
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.
AI hate that I'm so bad at pricing and feel bad for overpricing even though it cost me lots
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)
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]
AThat's one I did and have to redo for a client with another ill show you
ANice work, but let's hear about why you think you're over charging. That's really probably not true. :-)
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
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!
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.
ATo see if I'm charging too little for a cake.
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.
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.
AI meant $20 less
AI just found I get more business that's why I do it.
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.
AOk thanks I'll check it out.
Are you charging at least minimum wage for your time?
AI charge $5.00 per person plus the design price. I dont do any cakes less than 30 people.
ADesign price would usually start about $80