Cost Of 3 Tier Celebration Cake Too Much Compared With Wedding Cake?

Business By Snowflakebunny23 Updated 20 Oct 2013 , 6:17pm by SugaredSaffron

Snowflakebunny23 Posted 16 Oct 2013 , 12:43pm
post #1 of 11

Dear fellow decorators,

 

I've just started up shop and have been diligently working out my pricing.  I have calculated a base price (labour, plain vanilla cake, covered with ganache and then a layer of white fondant and a ribbon, boarded, boxed etc) and then work out additional decorations on top based on labour time.  For a 3-tier wedding cake of 6, 8 and 10", I figured that would come in at about £180.  Having done some research, I think that is about consistent with the area and thus far when i have mentioned it to people, they have been quite happy with it.

 

I have just received an enquiry asking how much I charge for a 3-tier celebration cake.  No details are given so I was going to give the base quote, less about £20 (as I won't have to factor in time liasing with the venue, samples etc).  Still, this comes out at £160 with for a pretty plain birthday cake!  I don't know why, but this seems pretty expensive to me for a birthday cake, even though I know exactly how the costs are made up!

 

What do you think?  It is a new business so I would like the work but as many have said before, I don't want to be the cheap cake lady!

 

Any advice would be appreciated - is it too much?  Should I lower the price for birthdays?

Many thanks :-)

10 replies
Dayti Posted 16 Oct 2013 , 12:57pm
post #2 of 11

It doesn't cost you any less to make, and it will be no quicker than a wedding cake, so no, I don't think you should lower your price. 

 

I charge the same per slice regardless of the event. 

ddaigle Posted 16 Oct 2013 , 12:57pm
post #3 of 11

I charge per serving.   Not "celebration" vs. "wedding".   Due to all the fancy decorations, many birthday cakes cost more than a wedding cake.   You need to educate your clients on all of the custom work they want and the cost  of it.  They don't care about the time it will take you...I don't have that conversation with them.     I can knock out a 3 tier wedding cake with ribbon & scrolls in 30 minutes.   Some birthday cakes take HOURS.  The "bells & whistles" cost. 

-K8memphis Posted 16 Oct 2013 , 12:59pm
post #4 of 11

perhaps get in the mirror and practice saying "oh that's 200 pounds" until it becomes second nature then you can easily say 180 pounds as if it's a bargain--

 

you did the math already--just strengthen your nerves--it's ok-- you're in the big leagues and it's your first time up to the plate--hit it out of the park!

 

go for it!

sixinarow Posted 16 Oct 2013 , 1:10pm
post #5 of 11

Quote:

Originally Posted by Snowflakebunny23 
 

Dear fellow decorators,

 

I've just started up shop and have been diligently working out my pricing.  I have calculated a base price (labour, plain vanilla cake, covered with ganache and then a layer of white fondant and a ribbon, boarded, boxed etc) and then work out additional decorations on top based on labour time.  

 I think you answered your own question. :smile: You know your costs, so for your business, it doesn't make any sense to lower your prices on birthday cakes if you want to keep your profit margin. You won't get every order, but that's when target marketing comes into play.

Good Luck

Relznik Posted 16 Oct 2013 , 1:25pm
post #6 of 11

I'm not surprised people don't have a problem with £180 for a 3 tier cake!!!!!!

 

I work from home, not a shop, but I'd charge around £300 for a 3 tier wedding cake.

mmmmmmmmcake1954 Posted 16 Oct 2013 , 1:41pm
post #7 of 11

I agree with Relznik, I bake at home for friends and family mainly as a hobby, but if I were charging I certainly couldn't/wouldn't charge less than £300 for a 3 tier wedding cake.  How can you do that and make a profit if it is your business?

kikiandkyle Posted 17 Oct 2013 , 4:18am
post #8 of 11

ARemember you are not your customer. The Ferrari sales guy probably thinks $200,000 for a pretty plain car is a lot but he's not going to knock it down a bit.

A fair price is one that is fair to you too. You should be fairly compensated for your time and skill. It is up to your customer to determine whether they have the budget for a custom cake, not everyone does and that's OK.

Snowflakebunny23 Posted 18 Oct 2013 , 1:46pm
post #9 of 11

Thank you all for your comments - i guess i knew the answer, just needed a sanity check and re-assurance that i hadn't lost all perspective!  The fumes from all this sugar can really go to your head, lol 8O

Have a great weekend, all!

-K8memphis Posted 18 Oct 2013 , 3:49pm
post #10 of 11

oh whoops--i did not do the conversionto understand the actual amount in dollars--

 

the only pounds i am familiar with are the ones i need to loose  :lol:

SugaredSaffron Posted 20 Oct 2013 , 6:17pm
post #11 of 11

AYou're seriously, seriously undercharging so get ready for a whole lot of demanding entitled brides, last minute requests, time wasters, refund beggars, delayed final payments, tacky designs and general headache.

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