How Would You Price These Cakes? Suggestions Appreciated!

Business By LizKatherine Updated 27 Aug 2014 , 11:50am by 810whitechoc

LizKatherine Posted 24 Aug 2014 , 7:53am
post #1 of 10

Hey all, kinda new here, this is my first thread (take it easy on me! Lol). I tried posting it a couple other times before but I don't know if it actually worked, so sorry if you see some double threads.

 

I know there's a ton of pricing stuff on here, and I don't want to ask another generic pricing question, but a more specific question: how would you, personally price these cakes? I've been decorating fora few years now. Just wanna get an idea from more expertise to see if my pricing is in the ball park. 

 

First one is double layer 10" with buttercream filling inside.

Second is a 6-8 inch square with some carved pieces in the back and front (might have ended up with different dimensions after carving).

Third is a double layer 8" with buttercream filling. 

Fourth is a double layer 6" and double 8", buttercream filling. 

 

Thank you all!

First time trying out the "lace" flowers. Smaller brush next time.

 

This cake took me tons of hours. My friend said he'd price it at 35$ (he's not in the business). I was like, LOL wrong.

 

 

9 replies
810whitechoc Posted 24 Aug 2014 , 11:22am
post #2 of 10

Hi LizKatherine congratulations on your first post.  If you have read threads on pricing you will know that pricing is a hot topic here.  Can I assume that you are baking/decorating as a cottage business, or hoping to turn a hobby into a business?  If so, you have to start thinking like a business, as such there are no short cuts to something as crucial as pricing.

 

In order to price your cakes you have to know down to the gram or ounce how much all of your ingredients cost you, how much for structural ie boards, dowls/straws etc, how much for utilities and how many hours you spend on each cake and what your hourly rate is, how much for whatever taxes, ongoing maintenance of your equipment and work space etc etc etc.

 

These figures are going to be different for each person, I'm in Australia and my pricing for all of the above is completely different to yours so there is nothing to be gained by me telling you my price.  Not only that but I believe that as our industry continues to be eroded by unprofessional and ill informed "businesses" - we all know the people out there who are charging ridiculously low prices that devalue our industry and are not sustainable long term - it is up to the people who are running businesses to be able to give our customers a price that is realistic, covers all of our costs and makes a profit. I will get down off my soapbox now :)

 

If you want to get an idea if you are competitive in your area, go check out the prices of your competitors, that will give you an idea of where you are placed and if your prices are realistic.  

LizKatherine Posted 24 Aug 2014 , 3:22pm
post #3 of 10

Thanks for the reply, 810whitechoc! Yep, I run a home bakery business. I have read tons of threads on pricing, and have done a lot of calculating/ checked out bakeries in my area. I am charging a bit under those prices, simply because I do not have decades of experience like they do. But, that being said, I am not super underpricing, because I know the value of work put into beautiful cakes and I'm not about to devalue my efforts with some walmart cake price, lol.  

 

I also have a discount for college students. I know its easy to get a cake at walmart when you're tight on money as a student. I'd rather give them a more customized and personal cake at a discount rate, than have them settle for a generic, frozen cake at walmart.

-K8memphis Posted 24 Aug 2014 , 6:57pm
post #4 of 10

Ajust wanted to say that I love your purse and rubber ducky cakes-- good stuff

810whitechoc Posted 25 Aug 2014 , 12:21am
post #5 of 10

Quote:

Originally Posted by LizKatherine 

 

 

I also have a discount for college students. I know its easy to get a cake at walmart when you're tight on money as a student. I'd rather give them a more customized and personal cake at a discount rate, than have them settle for a generic, frozen cake at walmart.

As long as you are making a profit for yourself!

 

We offer small discounts for schools in our area (there are a lot) and the local hospital which is very big and 2 minutes away. We get a lot of day to day dessert cake orders from them all - we are amazed at how much cake teachers and medical staff eat!  But we make sure we make our profit.

 

Good luck with your business.

LizKatherine Posted 25 Aug 2014 , 6:13pm
post #6 of 10

Quote:

Originally Posted by -K8memphis 

just wanted to say that I love your purse and rubber ducky cakes-- good stuff

Thank you, k8memphis!

Apti Posted 25 Aug 2014 , 8:47pm
post #7 of 10

Welcome with your first post on CakeCentral.  I agree with everything said by 810whitechoc.  Although your cakes are lovely (especially the purse!) and presented professionally, there is no way the forum can provide meaningful comparison pricing information for your cakes.   " a more specific question: how would you, personally price these cakes?" ...  "Just wanna get an idea from more expertise to see if my pricing is in the ball park."  It would always be an "apples to oranges" comparison because there are simply too many variables. 

 

Here is an excellent article you may enjoy:

 

http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge

LizKatherine Posted 26 Aug 2014 , 8:21pm
post #8 of 10

Thank you Apti! This article is great to figure out pricing. Thanks for sharing. 

 

I was hoping to get some pricing figures and to see the variation of what people would price. But I totally see your point now – it would be negligible because of the variation of basic costs people have to figure out (like in the article) and everybody's price would come out totally different. Apples to oranges indeed. 

Apti Posted 26 Aug 2014 , 8:59pm
post #9 of 10

Good luck on your endeavors with cake!   You definitely have the skills.

810whitechoc Posted 27 Aug 2014 , 11:50am
post #10 of 10

Great article Apti, thanks for posting, I think it should be mandatory reading for anyone trying to work out their pricing.

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