Hi i have a registered wedding cake business in Nottingham. I'd like to know what percentage of profit other businesses use to price their cakes? Currently i charge for costs of ingredients boards etc plus i pay myself £15 per hour and then add 25% profit on top. How does this compare to other registered businesses?
Many thanks in advance
hi lisa -- i don't know your answer but i know it's your third time to ask -- there's a thread located here http://www.cakecentral.com/t/622656/a-thread-for-all-uk-bakers and it's a fast moving thread where being an american myself i don't understand it all but it's a wonderful group of sweet people and you should be able to get some good information there -- you can tell them i sent yah
Thanks for taking pity on me, i have also posted on that thread but still no joy!
no matter which side of the pond -- i'd recommend that starting out you charge at least as much as most of your local bakeries with a goal of over pricing them in the near future -- otherwise it hardly pays to do it and you want to cultivate the clientele who 'get' custom cakes -- get as in desire/understand/will pay for -- because even families who would never darken the door of a local bakery for cookies and whatever -- when grandma turns 80 or when suzie gets married they get together and they want 'a. cake.'
i worked for a chick who had 'an organization' as her principal client -- their orders basically paid her overhead and anything else was her gravy -- she had ordering guidelines set up that she did not follow -- such as they had to give several days notice -- she took all their orders she never said no she would drop everything all the time to supply them -- she charged peanuts/hardly anything for her stuff -- no actually peanuts would be pricier than her baked goods -- she worked her people and herself into the ground for what? i don't know what but that is just not the way to run a bakery--
so aim high -- you can't go wrong -- best to you