I'm trying to figure out if I should price my cakes by cost of ingredients, boxes, dowels, etc. or if I should price them by the servings (e.g. $3.50-4.00 per serving).
If if you charge by the serving, is that a minimum price and then you would add on extra prices for stripes, polka dots, lettering, etc., or is the $4 per serving based on extra decorations? I've done cakes before but never really had a formula for price I know how much the ingredients cost but not the cost of hydro, or my time. I'd appreciate any and all information. Thanks!
There are several articles on here that cover pricing questions you can do a search and find them. Best advice I have is to do the homework involved in figuring out your costs down to the penny on everything water, electricity, ingredients, supplies, licensing fees, taxes, insurance etc. then Figure out how much you want to pay yourself. Some would suggest doing the price per serving and maybe that's not a bad thing but I don't like the idea of doing that personally I like to know the exact cost of each custom cake we do and charge accordingly. I love cake boss and highly recommend it. There are others on here that have different methods to price out their cakes thst work great for them so maybe one will post what they do. I will say that the cost of ingredients x3 method doesn't even come close to being accurate in the custom cake business. I do it just to see sometimes for laughs and I'm always shocked at how much I'd be cheating myself. Hope that helps :)