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How much to charge? - Page 2

post #16 of 21
Quote:
Originally Posted by marykjan View Post

This is a 3 tiered topsy turvy cake that will be serving 50-70 people how much shouild I charge for it? I was told by one person $120

First thing to do is figure out exactly how many servings they are ordering, so you make the right sized cakes. There's too much difference between 50 servings and 70.

 

If you make a cake big enough to feed 70, than you should get paid for every serving. Like wise if your cake is small why should the client pay for 20 more servings than you gave them?

 

Second thing you must look at is, what is a reasonable price per serving? Go to a restaurant and order a piece of cake........see what they charge you. Go to your local bakery and find out what they charge per serving. If you charge them $120. for 70 servings that's $1.71 per serving. I can't think of any place in the world that would charge that little. Even a cupcake with-out any decoration on it costs more.

 

So start doing the math yourself.

 

How long did it take to make that cake? (I'd guess 8 hours for a beginner, going to the store to get the ingredients, baking and decorating.)

 

How much did it cost you to buy the ingredients? (I'd guess it cost you around $50.00 to make that cake)

 

Where does the math take you:

 

$120.00 minus $50.00 in ingredient costs gives you $70.00 of profit.

If you spent 8 hours making that cake, $70. divided by 8 hours, equals $8.75 per hour of payment.

You also have over head., since you can't post this question unless you are a legal business.

My guess is your overhead is $2.00 per hour.

 

Than ask yourself if your work was worth $6.75 per hour? Even a 16 year old gets more pay per hour than that at a minimum wage job in the US. So regardless of your experience decorating cakes, is your time really worth that little pay?

post #17 of 21
It depends. Is it a business transaction or is it just for a friend/relative?
elsewhere.
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elsewhere.
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post #18 of 21
As a n
Quote:
Originally Posted by Stitches View Post

First thing to do is figure out exactly how many servings they are ordering, so you make the right sized cakes. There's too much difference between 50 servings and 70.

If you make a cake big enough to feed 70, than you should get paid for every serving. Like wise if your cake is small why should the client pay for 20 more servings than you gave them?

Second thing you must look at is, what is a reasonable price per serving? Go to a restaurant and order a piece of cake........see what they charge you. Go to your local bakery and find out what they charge per serving. If you charge them $120. for 70 servings that's $1.71 per serving. I can't think of any place in the world that would charge that little. Even a cupcake with-out any decoration on it costs more.

So start doing the math yourself.

How long did it take to make that cake? (I'd guess 8 hours for a beginner, going to the store to get the ingredients, baking and decorating.)

How much did it cost you to buy the ingredients? (I'd guess it cost you around $50.00 to make that cake)

Where does the math take you:

$120.00 minus $50.00 in ingredient costs gives you $70.00 of profit.
If you spent 8 hours making that cake, $70. divided by 8 hours, equals $8.75 per hour of payment.
You also have over head., since you can't post this question unless you are a legal business.
My guess is your overhead is $2.00 per hour.

Than ask yourself if your work was worth $6.75 per hour? Even a 16 year old gets more pay per hour than that at a minimum wage job in the US. So regardless of your experience decorating cakes, is your time really worth that little pay?
As a newbie, this comment is professionally sound and just makes good business sense. Thank you for such a detailed explanation.
"As an artist in other mediums, cake is my favorite canvas!"
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"As an artist in other mediums, cake is my favorite canvas!"
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post #19 of 21
Quote:
Originally Posted by SystemMod1 View Post
 

CCs policy on pricing threads:

 

http://cakecentral.com/t/764720/policies-for-posting-the-cake-decorating-business-forum

 

I see no indication the status of the OP, so either answer the question or get out of the thread.  Members that posted snark instead of flagging this post have been either banned or their posts have been deleted.

 

With clear guidelines posted by Heath, there is no room for nonsense.  If you like participating here on CC, you need to reconsider how you have been participating on certain topics and start choosing more wisely how you get your daily "entertainment".

Why isn't this a sticky at the top of the page?

Otherwise, someone would have to scroll through all the posts in the cake decorating business forum to know it's there and this is the policy.  There are going to be a lot of people who aren't aware of this.

Tact is telling someone where to go so nicely they can't wait to take the trip!
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Tact is telling someone where to go so nicely they can't wait to take the trip!
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post #20 of 21
Quote:
Originally Posted by cakesbycathy View Post
 

Why isn't this a sticky at the top of the page?

Otherwise, someone would have to scroll through all the posts in the cake decorating business forum to know it's there and this is the policy.  There are going to be a lot of people who aren't aware of this.

 

 it is a sticky in the business forum

love me some cake buzzzzz

 

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love me some cake buzzzzz

 

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post #21 of 21

I see it now.  Guess I didn't realize it since the title is pretty generic and doesn't refer to pricing threads.

Tact is telling someone where to go so nicely they can't wait to take the trip!
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Tact is telling someone where to go so nicely they can't wait to take the trip!
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