Costing.

Decorating By kjgjam22 Updated 11 Oct 2006 , 1:12am by FancyLayne23

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kjgjam22 Posted 9 Oct 2006 , 5:45pm
post #1 of 2

I have noticed that there have been many posts asking how much to charge and what would you charge and so on...

i thought i would post costing info i learned in school.

This can be applied to any recipe.

Determine the cost of each ingredient. Lets say you buy a 5 pound bag of flour for 5 dollars (just to simplify things) so your flour would be 1 dollar a pound. then to get the ounces cost since you dont use a pound of flour in a cake divide 1 by 16 then you would get the cost per ounce.

5 divided by 5= 1
1 divided by16=.0625

lets say you use 1/2 pound of flour
8 oz multiplied by .0625=.5 which is 50 cents.

do that for all of your ingredients and then add it up. that way you know what the base cost for the cake is. then you can add on a profit and that profit can also inculde labour costs or add that sperate.

you can also do that for your other decorations like fondant flowers and stuff.

hope this helped.

kathy. ps any questions just ask.

1 reply
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FancyLayne23 Posted 11 Oct 2006 , 1:12am
post #2 of 2

Thanks for the info. I will save it in my files.

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