I know this is an ongoing saga with cake quotes BUT I live in Australia and all the info seems to be USA based.
We mainly use ganache and fondant for our cakes here and as I am just starting out commercially I am finding it hard to gauge what to charge.
I normally quote for my hours, cake ingredients/decoration etc but I still seem to be either too cheap or too expensive compared to others. Where am I going wrong?
Hi Kathryn, I'm also in Australia but strictly a hobby baker. I think pricing is one of the most difficult things to work out. I think you are on the right track with working out your costs etc.
The only other thing I could suggest is that you do some research on the net.
Check prices on websites, go to bakeries etc. Try and find someone who's work is on par with what you do and look at their pricing.
You also need to consider your market, ie. kids novelty, wedding etc. Where you live can also impact on your market.
ACompare your different prices with quality; if you are on par skill-wise with the higher priced comparisons you've gotten you may well be worth more per hour than you are currently basing your own prices on.
Pricing changes in two main ways as your skills improve: 1 - My skill has increased, people get a better product than they used to, so that product is now worth more, I am therefore worth a higher wage (because the product value increase is a direct result of my skill increase). 2 - My skill has increased, I can make the same cake I used to but in half the time, the market price of that cake is still acceptable, I therefore earn double(ish) the wage I used to.
Don't just think about the 'cost' even including your 'wage', think about the market value of your product and charge what it is worth.
I think I'm going to have to really sit down with pen and paper and cost all my cakes as I go. I have been doing them for a while for F & F but am now branching on into my own "business". And as a business I have to make some profit otherwise what's the point in doing something you totally love but living in poverty…….lol.
Guess there's no real answer.. just get the 'feel' of my area and expertise.
Thanks for your input though.