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Original message sent by tina0719
The bakeries around here charge anywhere from $5.50 - $15 per person
US dollars?
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Original message sent by tina0719
Yes US dollars. They are very pricey over here.
I'm curious, where are you located?
Considering your design fee it doesn't sound like you're undercutting, for 30 people the price including the design fee is closer to $7/serving. Not sure why you separate the design fee instead of including it in the per-serving price though.
A[quote name="Norasmom" url="/t/760366/pricing/30#post_7463689"]The only difference in a home bakery is that I don't pay employees/benefits…to me those two things add a bit to the price of a cake… [/quote
When you run a home bakery, you are your own employee, and hopefully you are paid for baking and decorating.
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Original message sent by Norasmom
Yes, but I'm not paying another person, so it's my hourly wage only.
Whether you make the products yourself or pay someone else to make them, the labor cost (at least for the production component) should be equivalent. The biggest difference in terms of cost is typically the additional allocated overhead of rent.
A[IMG]http://cakecentral.com/content/type/61/id/3167142/width/200/height/400[/IMG]
My gf and I made this cake for my brother in law for free , I was wondering how much this cake would cost ??
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Original message sent by psychedelic666
[IMG]http://cakecentral.com/content/type/61/id/3167142/width/200/height/400[/IMG]
My gf and I made this cake for my brother in law for free , I was wondering how much this cake would cost ??
Depending on market value and number of servings it would probably be somewhere between $150 and $1500.
Another difference is that a larger bakery can get bulk pricing, a small home baker doesn't. A larger bakery also can be more efficient, making large batches of icing, batter, larger ovens, etc so that they can be more efficient than a smaller baker. So a small baker will likely have greater expenses in some categories.
I agree.
Not just hourly wage. It's your hourly wage plus profit over that wage.
And this is why pricing should never focus on costs. This is a very simple concept if you just think about it for a minute: Price should be determined solely by the market price. Period. A reasonable person charges as much as he can for his product. (I shouldn't even have to say that.) If your costs are such that market prices wont allow you a true profit, then it's not a viable business.
Then you are a cake making service and reducing others to the same fate because you've lowered prices. And good luck ever having a storefront after you've contributed to bringing down the market in your area. Obviously, I have no clue whether you dream of a storefront one day, but this is for anyone reading this.
If cost is the important factor, then people without a house payment should charge less for cake, right? If they do that, eventually only people without house payments will be able to make it in the cake business.
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