Pricing By The Slice, What Does It Include?

Business By ConnieCakes14 Updated 27 Aug 2014 , 4:20pm by ugcjill

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ConnieCakes14 Posted 27 Aug 2014 , 12:47pm
post #1 of 4

AI want to start pricing my cakes by the serving. My planned price is $2.50 per serving, which is about the same rate as bakeries in the area. I'm really not sure what that covers. Does the per serving cost cover just the cake, buttercream, and fondant? Or does it include other things, like equipment? and additional costs being chocolate/gumpaste figures and design?

I do have a list of pricing for all of my ingredients in my recipes, per cake, but I'm not sure how much of a percentage I need to tack on top to make a profit.

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ellavanilla Posted 27 Aug 2014 , 3:57pm
post #3 of 4

only you can determine what your pricing includes. 

 

if you search this forum and the site for "pricing" you will find plenty of good advice. 

 

There is also a pricing matrix pinned to the top of this forum. 

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ugcjill Posted 27 Aug 2014 , 4:20pm
post #4 of 4

There are two main ways to do this:

 

A.) Start with a low per-serving price and add on ala carte fees for all decoration options

B.) Have a high per-serving price that reflects a cake you would typically sell to your customer, inclusive of any basic decorations, stacking, standard flavors, etc... with more elaborate decorating being the add-ons.

 

Option A tends to drive customers away because they start by doing the math at the basic price and the add-ons give them a jolt.

 

Option B eliminates customers the same way an $18 salad on a restaurant menu makes me run in the opposite direction.

 

I've never gone to a restaurant and saw "Hamburger, $2.00" and paid an extra charge to have them assemble it and put it on a plate. But they do charge a little extra to substitute onion rings for fries and I'm ok with that. If I don't want onion rings, I still get fries and a great burger.

 

I'm so hungry right now.

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