This may have been asked before (I feel sure it has) but I haven't found an answer yet so I am taking a chance asking you all.

 

I understand the basics on how to price cakes. Your cost, time, labor, etc.

I understand having a base price on different sizes, flavors, fillings, etc.

 

My question is, how do you determine upgrade charges? Say you are doing an 8 in, 2 layer cake, iced in buttercream and your base price is $x.xx    

 

Now lets say your customer wants a few small fondant decorations. Do you have a pre-set price per item or do you estimate your cost / time and give them a quote? Yes, I do know it will change some depending on what exactly you are making. Some will cost more, some less.

 

I did the above mentioned cake for a "Happy Doctor's Day" cake and added a small fondant syringe, a few fondant "pills", a small fondant band aid and a fondant "prescription" paper. 

 

Just wondering what your general plan is for add-on or upgrades. I am not asking you to price my items for me ;) I am curious how you handle this when you quote prices for your cakes.

 

Thanks, Julie

AI have a 'bracket' for detail, so I charge a set amount per size of cake for an amount of detail within that bracket (ie a max amount of time).

This does mean that people who ask for less detail pay slightly more by up to maybe 2 hours extra work, but then it harder to get a clean finish so that 2hr 'over-charge' pays for my ability to make it look good with less detail.

So I know how long a cake should take me for the price, if 'upgrades' push my expected time up past the maximum eg modelling figures/flowers then the price goes up accurdingly but I find the less itemised the qote the better, I lost a lot of orders by being as open as possible at the start!

I start with my base price per serving and then just guesstimate my time plus the supply costs.  Every single cake I do is different so it's difficult to have any sort of set pricing (for me).  I may have sculpted a cat before but not the same size and details, so it doesn't take the same amount of time.  After I determine how long I think it will take me I usually add on an hour or 2 of labor because I always seem to under-estimate the time element.  I don't share this detailed information with the client I just give them the final price.  If they'd like to decrease the final cost I simplify the design or remove a couple of items.  It's also helpful if the client will give you their budget up front and you can design around that.   Most of the time people really don't know what a custom cake costs and therefore have no budget in mind or its very small.

I haven't read the other replies yet but I never really charged for  'upgrades'.

I had one price for each size cake - unless it had lots, and lots of extras.

What you described would have been just the regular charge.

I'm going to give a thumbnail sketch here in the hopes that it helps someone charge a proper amount for their cakes. Accurate accounting and business training will go much farther than taking this as advice.

 

My base price covers the basic recipe, disposable materials of construction (cake boards, dowels, boxes) and enough decoration to make a pretty cake. This will cover cost, overhead, my wage and 20% business profit.

 

Additional charges are for enhanced construction (plywood instead of cake boards, decorative pillars, etc..) and purchased items (stock gum paste items, toppers, bling). These are list price + shipping charges + 20%.

 

Finally there is additional decoration charges above and beyond basic cake decoration. Figurines, swags, painting, piping, detail work, all the fancy stuff. This fee is a flat rate per hour. This is not my wage, but I take about 60% of it because it is my work and I get the bonus. My business, my rules.

 

In overly simplified terms, I earn about 20% in wages, 15-20% is profit for the business, and the remaining 60% or so goes to overhead, materials, fees, occasional payroll, and taxes.

 

These numbers change dramatically depending on your individual business profile, and change quite often for me, so don't think they are a hard and fast rule. Staying on top of your bookkeeping is essential.

 

Edit: just wanted to add, costs will be very different and much higher if you are paying retail. Don't adjust your prices, adjust your mindset: you can't charge less as a home baker, because your expenses are much higher, processes are inefficient and your profit is much lower as a result. Don't short yourself.

AThanks for all the suggestions. I really do appreciate it

A

. Oops just a typo on my part... you know early morning not thinking ;)

I specialize in custom cakes, so they have custom prices.  The base price includes no topper, but does include simple decorations like a few polka dots and basic trim around the base of each tier. But extra stripes, bows, flowers, name placards, banners etc. all have their own prices. The topper may be anything from a large number one to a huge peony to a 3d figure of the customer's child in her party dress.

 

The drawback to doing it that way is I spend more time quoting out cakes.

APretty much ditto to Costume and Howsweet.