Okay guys I would like to hear some more input about pricing. I have a lot of customers who want stacked B-day cakes and other party cakes. Should I price them the same price as wedding cakes or less. On one hand it is the same amount of work for the most part and on the other I kinda feel people are not going to want to pay that much for a party cake. Also are the wedding cakes and the party cakes the same height? (for example wedding cakes are roughly 4" tall or more.)
Thanks

Yes, we would all like to get wedding style cakes for party cake prices. I think you should have a separate price for tiered cakes, unless you make your party cakes torted and filled as well.

That's a hard one to answer. I always end up ripping myself off no matter what I do. And yes it's hard to get people to understand there is still a lot of work invloved and get them to pay for that work. They look at you like your crazy when you tell them the price!! I only charged $50{8 inch and 10 inch} for my superman cake. I put a lot of work and time into that cake I should have gotten at least $65 if not more. $72 would have been a wedding cake price as I charge $2.00 per serving{I believe it was 36 servings}. But that is a base price too. It's hard to say, I don't think anyone on here has said "Man, I charged too much for that cake!", it's always the other way around!! I myself have a tendancy to undercharge because I don't want people to choke when I tell them a price. Sorry I wasn't a real big help, but don't sell yourself short! Charge what you think is fair and if they don't like it they can get a sheet cake!

Seems like a party cake should be $1.50 slice and add more if gumpaste or intricate work... wedding cakes $2 + per slice.

I have been doing this for several years and this is what I have learned:

Almost everyone charges too little for their cakes (especially the intricate ones).

On clients: Some people are cheap. Some people are not. Some people want to pay $25 for a $50 cake. Some people have more money than they know what to do with and will pay $100 for a $50 cake because it's unique.

You want the second kind of people as your clients.

Don't deal with cheap people. They will often complain about the finished product.

If people want a "deal" on a cake then let them go to a grocery store and try to get one or better yet, let them try to make their own. They'll quickly find out why your prices are high.

You're not a grocery store baker. You are an artist. You have the ability to do one-of-a-kind stunning work. You can match invitations, do different fonts, use fondant, make curls, bows, and lace. It doesn't matter if you don't do that on every cake. You CAN. That's the point.

PEOPLE ARE BUYING YOUR TIME! You could be spending your time doing any cake at all. What if someone asks you to do a cheap cake that would take away time when you could be working on an expensive one? You've just short-changed yourself.

I really recommend making some stunning display cakes and taking photos of them and then targeting your advertising to the elite neighborhoods/stores/publications/etc. in your area.

People who have lots of money to spend LIKE to see higher prices. They think it means they are getting a much higher-quality cake. They will often look at it as a status symbol and flaunt your name to friends. "Oh, I got this cake from so-and-so. She's so fabulous but it'll cost you an arm and a leg!"

Also, limit the number of cakes you do. Make it clear that you only take a few cake orders and that you need advance notice. This also creates some sort of incentive for people with money. Suddenly you are even more desireable. This doesn't mean you can't take last minute orders. You just have to say, "Well....normally I don't take orders this close to the date but I happen to have an opening for that date. Next time, make sure you call me two weeks ahead as my calendar books up."

I want to repeat: PEOPLE ARE BUYING YOUR TIME. The cost of product is not that much. You need a good hourly base rate for your time. $25/hour is a good start depending upon your skill. If you KNOW that you can do outstanding cakes, start there. Know how long it takes you to make a bow, fondant, royal icing, batches of buttercream, cake mixes, and don't forget time spent planning, sending e-mails, etc.

After saying all that, it's true that party cakes aren't usually layered and filled. So your base charge should reflect this change in the time it takes to do your cakes.

Whew...I've been wanting to say that for a while! Glad you asked!