I went to my first meeting with a business counselor today to make sure I'm doing everything right and in the right order. She, of course, isn't savvy about the cake biz, but knows alot about starting and running a business. She said I should charge for consultations. Well, every order I take, be it phone or in person, is a consultation. People don't look through the grocery store design book and request "that cake". Each one is unique.
So when consulting with a bride, or a larger cake for large parties, does anybody charge a consultation fee?
Another question she asked was how do I charge for my labor. I just use the "triple it" formula, or i've even quadrupled it for extremely complicated cakes. But when I put it on paper for a business plan, what is the best way to word this as far as labor costs go?
It's all very overwhelming and a bit confusing at this point. I'm sure it will all fall into place, but I hate being cloudy in the head like this. Maybe someone out there in CC land can help me sort some things out.
Thanks gang!

Becky

Are you getting your own place? Lucky you.

Here's a bump for yeh.

Becky,

I don't charge a set consultation fee, instead I factor it into every cake. I top off each cake order with $30 which is essentially to cover the 30 -45 minutes I spent with them getting the order / idea for the cake. As for what you charge...I'm not familiar with your method. I charge a per slice fee, based on the time a particular size cake iced with a basic buttercream takes to create, then add on for each additional item. For example, I start at $4 / slice, so a 1 tier 8" round that feeds 12 starts at $48, then I add on for each additional item, and then at the end, I add on the $30.

I hope that helps.

Hey there
I don't run a business but if I did I would probably charge a fee for a consultation that could later be carried over into the price of the cake. For example, you could charge $30 (paid at consultation) that if and when they choose to go with you for their cake, the money or a portion of it could be put toward the price of the cake. That way, if they decide not to go with you, you have something for the time you spent working with them.
Just a thought...

Yeah, nglez, thats what I was thinking. I can only see charging the fee with it being put toward the cake if they go with you. As for wedding cakes, yes, per serving is correct. What I was talking about (i.e. triple the cost) is for non tiered cakes, like birthdays and such. But for anything over 40 people, that would require a per serving charge.
Gotta say, though, Terri A, I wouldn't last long around here charging $4 per serving for an 8" cake. I do have some great pricing lists from local bakers to go by though, but I see your point as far as extra add ons. Boy, do have alot of work to do!

hee hee, we're all thinking the same thing! I just can't see charging a consultation fee for someone placing an order for a 5 year olds birthday cake. Or do I just have a soft spot?

$78 for a basic 8" cake?? I'd be out of business.

eriksmom, usually the "triple" method does not work. Certainly if you are going to be purchasing items at wholesale. I made a 7 teir wedding cake that cost me $145 in ingredients and materials. The cake served 358 people. At my $3.25 per serving (fondant) I charged $1163.50. Had I used the "triple" method I would have only gotten $435 for a cake that took 2 days to decorate. Does this make sense? Customers are paying for your time and skill not for ingredients!

I see your point too, sweet confectionschef. But is it per serving even for 8" or 10" cakes? I know definitely for wedding cakes the triple method doesn't work. Then, at what point to I start to charge per serving?
Now I'm really confused! Maybe this isn't such a good idea after all.

Your Cakes are custom creations and not mass produced. You won't be in business very long if you are afraid to charge. And the 3x ingredients method will help you go bust.

I figure a lower $ per serving on non-tiered cakes unless they are complicated.

Decide how much you want or need to make and price all non-tiered accordingly. Then use the add on method for extra time. Cut outs take longer to do and cause more stress add $15.
I usually add $10 for quick extras but if it looks hard I may add another $100 to the 1/4 sheet price.

Oh and I don't charge for consults. No one in my area does.
mpc

Nope.

Thanks mypastrychef. And thanks to all of you for your input. I will have to restructure my ways accordingly.

A consultation is a sales call.

Good luck trying to charge money to sell to potential customers. Not even used car salesmen get away with that one.

Well I haven't started my business yet but am mulling over ideas constantly. I guess I view the consultation kind of like if you are going to get Lasik (sorry another idea I am throwing around) they give you a free consultation and then you can or cannot choose to get the Lasik. Now the one thing I haven't decided on is the tasting. Once business picks up I like the idea of a monthly or bi-monthly tasting but what about if you very rarely have contacts for weddings, you may be making cake for one person, UGH!! Also I think for birthday cakes and such I have kind of decided how much I think people will pay for a regular 8 in birthday cake and then took that many servings and divided it up to come up with an amount per serving. For wedding cakes I looked around at others in the area (DC Metro) and set that price per serving. The interesting thing is nearly all were between 3.50-4.50 for wedding cakes but then I found a lady actually in my town today and she is 5.75+. We actually live in the most affluent county in the US, median household income is 125,000 or 150,000 a year, but a lot of people are house poor too I think. So one minute I am thinking they can afford higher prices then the next I am not sure. Ahh, so many choices, I am having a blast though planning all this!!! Good luck (and sorry for the novel!!)

Kristin

Squarepair, your novel is ok with me. Just more info to arm myself when i sit down to think it all out. I feel the same way about just a regular cake, set price to them, but i've figured out a per serving to base that price on. its the consultation thing that i'm going back and forth on. the tasting issue is part of it. i guess i'm going to have to make nice with the few other bakers in my county (i found 7 in all through our whole county!), and not all of them specialize in decorated cakes. Some are full bakeries, some eateries that do cake on the side, etc. So I think I have a fairly open market here. I just don't want to outprice myself and chase away biz.

There are more good ole boys types around here than affluent, although there are money people around, they just kinda hide. I'd like to make myself available to most markets, but i know thats not always possible.

Thanks again, and I hope you like my reply novel!

Becky

I dont charge, if you charge and some1 else doesn't then the bride is more likely to go with the one who doesnt. I agree with maisieBake, its a sales call.

Definitely don't charge for the consult. It is a sales pitch. I've had people come to my home to sell me things, some I was interested in and others I wasn't, but I would have not even given any of them the time of day if they had tried to charge me to listen to them.

As for pricing, I charge by the serving. I don't care what they use the cake for be it a wedding, a birthday, or a shower, a serving is a serving. I do charge $0.50 per serving less for single layer cakes. The time it takes to decorate it is still the same.

I agree, don't charge. You will waist your opportunity to make them listen to you, many costumer need guidance, they don't know what they want, consultation is your chance to tell them that what you offer is what they want. I feel that this business is half great cakes, half how you pitch them.
Paola

I wouldn't charge for the consultation however I would charge a refundable tasting fee deducted from the price of their cake if they decide to book with me within a reasonable time of course. Also, that fee would also double to reduce no shows by weeding out the non serious buyers so that I wouldn't be wasting my time and ingredients.

So many opinions here! And they are all valid. Indydebi, you have some very good points. I am considering going to a meeting of the Space Coast Bridal Association, and see what they're all about.
BTW, can I sneak into one of your tastings? Sounds yummy!

I have an extra bedroom that contains nothing but a futon and cake stuff. you'll feel right at home!