I always loved to bake, there is a calm that I find in front of a mixer and at the end everyone, (especially me) is happy. I was recently asked to make a cake for a 50th birthday party and I did. I baked carved and decorated a cake with fondant for the first time. I actually was surprised at how good it came out. Every one at the party is asking for my information and about pricing and I have no idea where to begin. Can anyone point me in the right direction, I think I just found my niche.
Thanks In Advance
First, let me say congrats on finding your niche it's a wonderful thing when we find we can do what we love!
Now to answer our questions, pricing really depends on where you live. Do your research on area cake shops; you dont want to undercharge yourself and you also don't want to be so low from your competition that you are known as the "cheap" cake shop. You want to make sure that you check the laws in your area...can you bake from home (cottage food law) or do you need a store front....What licenses and insurance do you need. A lot of research is needed before launching this into a business. Jason Kraft has some awesome blog posts about all of this and should be a great help to you. While lots of people do this illegally that doesn't mean it's right and it will come back and bite them one day.
HTH and good luck!
christine, i ♥ this--in your signature
(ie--a few steps past frayed ;) hahaha
There are two ways to do pricing - pricing at a fair market rate and making sure you cover your expenses and overhead and earn a fair hourly rate, and pricing at what you think will get you lots of business but will end up costing you money rather than making any.
Pricing yourself fairly might mean you don't have anyone lining up down the street to get your cakes but most people would rather make one cake for $300 than ten cakes for $30. Don't be surprised if all of those people who loved your cake at the party have no intention of paying what would be a good price for it. The first rule of custom cakes is that most people can't afford them, they are a luxury item not an entitlement.
Now if you are still ready to proceed then start researching cottage food laws in your state and go from there!
AThank you. I'm nervous but I want to peruse this. I am going to look into cottage food laws here in New York. I'm also going to look around and find out what the local bakeries are charging. :D
srsly though, op, i would surmise that you would be a hobby baker rather than a full fledged business because you got your buzz fulfilling and exceeding expectations--whereas running a business is almost none of that--it is a welcome and lovely by product but not at all the main course--
and as either hobbyist or a business you would want to hold the banner high and protect this kinda fragile industry and do your due diligence to understand pricing--that pricing is not about replacing your out of pocket expenses plus a little--
and fwiw--when anyone bakes something pleasant--the common everyday complimentary response is "you should start a business" that's just the way we are--when the truth is--that might be a good reason to embark more fully on a nice purposeful cake hobby -- that's actually the worst reason ever to start a (full fledged) business--
but please research this board for pricing -- best of the best to you and congratulations on your first of hopefully many more to come 'cake highs' --
AThank you K8 Memphis.
Jason must be on vacation! LOL
Original message sent by MimiFix
The [URL=http://www.agriculture.ny.gov/FS/consumer/processor.html]cottage food law in NY[/URL] does not allow for selling custom cakes, so you would need to rent a commercial kitchen. Good luck.
if you rent a commercial kitchen you will need a food handler's certificate and insurance
Sorry precious...nothing towards you....Jason normally is involved in these types of discussions. I was being snarky! I love that word! Been looking for a chance to use it all day!
ALol "Snarky" I do like that word
Original message sent by ddaigle
Jason must be on vacation! LOL
Actually I am on vacation, we are spending the week in Cabo San Lucas with my wife's family.
To the OP, check out the Starting a Business and Pricing Formula links in my signature below for some more information about what's involved in starting a business and how to set prices.
AThank you Jason