I am just to get my name out into the world of cake decorating. Well maybe just a some of the locals! Nevertheless, it's a start. I have never done this for a profit before, though, and I am having trouble determining how to price my cakes. I know I have to factor in the obvious stuff like ingredients but the labor is what I'm struggling with. I have read that some people starting out just add up all of their direct costs (ingredients, tools, etc.) then add a certain percentage to that price to get a final price, while others determine a set rate for labor.
Does anyone with experience in this matter have some tips for this rookie?
Please take the time to google "pricing cakes on Cakecentral'. There are many, many detailed threads that will help one figure out how to price their work. It is a lengthy and involved process so it's best you find those discussions and read them well.
Read my article in the latest issue of American cake Decorating...The basic formula is expenses+wages+profit but that's the tip of the iceberg. And in a country where minimum wage is going to be $15 an hour in some places, charging $5 an hour for your time shouldn't be the norm. You also have to take your local market into account, but it's not so easy a process as the people who say "cost of ingredients times 3" make it out to be.