Hi everyone, I am not sure if I am posting in the right place but I was wondering if you can help.
I have made a 3 tiered cake its 12" 10" and 8" round sponge with vanilla buttercream filling, The snowflakes are piped royal icing. I Have been asked how much to make another but I am not sure, I have had one person tell me to charge from £125, I know it cost me around £80 to buy all the stuff in to make the cake.
I have been told by a few bakers that I have to factor in time, detail, my gas usage to make the cake.
What do you all think, you can be honest as it wont offend me.
at least $3 US dollars a serving! More if you value your time ;)
AI wouldn't let someone else (your friend) tell you how much to charge for your cake. By now I'm sure you realize how much work and time you put into that cake from start to finish.
There are many pricing threads on here, I would recommend searching and reading the feedback from there-this question gets asked a lot ;)
I want to say I wouldn't recommend taking orders until you get a pricing structure figured out, also there are legal issues (I'm not sure if it's Cottage Food where you live) but you need to find out if you're allowed to bake from home-do you need any food safety certifications, tax id, insurance, etc.
You want to see what other custom cake shops in your area charge, price out ingredients for your recipes, boards, boxes, and internal supports, overhead (electricity , gas, etc. ), I could go on and on. But from there you should be able to figure out your base prices then add on for time and complexity for design. Also, you want to decide how much you wish to be paid per hour and factor that in.
I do delivery as an extra expense, that's just me.
ABy the way, I meant no disrespect to your friend, but a $45 markup isnt much especially if you are only figuring your costs for ingredients.
I'm quite fast at putting cakes together, and £45 wouldn't make me minimum wage, so your friend is wrong.
All I can say for certain is that where I am the cake market is a mess! People see these 2, 3 or 4 tier cakes and refuse to pay what they are worth but there is always someone who is 'practising' or 'just doing it for the ingredients' who will do it for a quarter of the price it should cost. Before you make cakes for anyone for sale you a) need a pricing structure that takes into account time, utilities, profit, and materials. and b) need to be registered with the council, have insurance and a food hygiene certificate.
In relation to a pricing structure there is a wealth of information on this site if you have a search, but you also need to do market research including the companies in the local area and what they charge.
Here are two good guidelines to save for yourself. If your cake is 12", 10" and 8", it would serve almost 120. At a MINIMUM of $3 per serving, that's a 360 dollar cake. Your friend has no idea what she is talking about.
If you want to get bakers angry and report you if you aren't following guidelines, listen to your friend. If you want to perhaps start a legitimate business, then pay yourself a fair wage.
And your cake is lovely!!! Nancy
Thanks everyone I will look into it. I only usually do them for friends and family but thought about branching out a little bit.
Pricing structures and stuff like that has never really been my strong point :(
Nancy thank you I quite enjoyed making that one apart from a few snowflakes breaking on me hahah