I am really interested in selling cakes to some local small cafe's and restaurants. I want to get some samples and information made up. Is there anyone out there who does this and wouldn't mind telling me how they come up with pricing for this. I mean it has to be low enough that they can turn around and sell it by the slice and make some money but high enough to cover my costs so I am just wondering what you all charge. Thanks.
My friend did this 25 years ago and at that time was charging $25 per cake so you can probably go even $30 if its fancy like carrot cake or something nice. Figure if they get 10 slices out of a cake for $5 each they make $20 off that cake themselves.
I have also heard the price of your ingredients times three.
I was approached to do this but didn't feel it worthwhile for me, definitely was for the restaurant. They cut an 8 inch cake into 16 pieces and sold them for $5.50 a piece and wanted to pay me $25 per cake total. For most cakes from scratch, that doesn't even or just barely covers my cost when using butter, cream etc. Never mind time and the fact that my time would be tied down so much.
Look into the costs, see if they are willing to purchase your ingredients for their costs which are wholesale and see if it is worthwhile. You may find that you will be working for well under minimum wage and it may not be worthwhile for you.
Some smaller cafes are willing to pay for a good product.
Hugs Squirrelly
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