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Rainbow layer cakes. How are you charging?? - Page 3

post #31 of 70
Quote:
Originally Posted by 810whitechoc View Post
 

Rainbows start at $95.00 for me too and yep that is properly priced out, not a guess.


Would you take an order for one at that price? Or do you have a minimum order.

You are in Australia too ??

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A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

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post #32 of 70
Quote:
Originally Posted by ApplegumPam View Post
 


Would you take an order for one at that price? Or do you have a minimum order.

You are in Australia too ??

Hi Pam, Central Coast and yes we regularly make rainbows, it's not a big deal to do, we use our regular vanilla mix which we make several times a week.  All our cakes are made by weight so the amount for the each layer is a set weight which is scooped out into bowls, one staff member continues making the rest of the vanillas and another puts Americolor in all the bowls.  They all go in the ovens, they take 25mins to cook and are ready to be assembled in about an hour.  99% of the time they are for kids cakes so we make a simple frosting, butter, icing sugar, milk, vanilla.  They are layered and crumb coated and put in the freezer to set firm. Then a final coat put on.  We charge extra for anything else.  I made a rainbow for a wedding last weekend, we made the layers higher so I could trim and get them more even.  We made SMBC with pure NZ unsalted butter yum.  Delivered with decoration $250.00.  It's all about communicating with the customers about what they are getting, the cheap ones are made aware of what they are buying. And yes I'm annoyed with myself that all my layers aren't perfect.  The stand was theirs.

post #33 of 70
Quote:
Originally Posted by cakefat View Post
 

 

haha! That's my drink- I'll join you!!

 

An 8" rainbow cake here costs about $100. A 2 bedroom condo/apt also sells for about $1M- 1.5M-at least.  It all really depends on the cost of living of where you live.

 

I do wonder how custom cake makers/ businesses can survive in really low cost of living places, where a custom cake sells for $30-45? Isn't that like slave labor? why not just go get a job that at least pays $10 per hour or something?


 Cakefat...I guess it's all relative.   When you live in a town where it is relatively cheap to live there....than a $30 cake isn't shocking...or slave labor.   It's the norm.   But some customers will throw that theory out of the window too if a custom cake is thier "thing".  For some it's shoes and purses, etc.  I remember may people coming into the bakery who would forgo their months groceries to buy a custom cake on their food stamp card.   We wouldn't take it...but just goes to show how priorities differ.   I think people here expect to pay the big bucks for custom/3D crazy "wow" stuff.   They just can't see the cost in the standard birthday cakes. 

Debbie - US Army (Retired) --aka "The Cake Sarge"

Good Cake Ain't Cheap! Cheap Cake Ain't Good!
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Debbie - US Army (Retired) --aka "The Cake Sarge"

Good Cake Ain't Cheap! Cheap Cake Ain't Good!
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post #34 of 70
Quote:
Originally Posted by ApplegumPam View Post
 

An 8inch round rainbow layer cake for $45?????????

 

Do you want a job in Australia?   Hop on the first plane you can get on.   You will be working in a beautiful part of Australia.  I will be your boss.  I won't get in your way ...  I will be taking the orders, you will be living your dream, making LOTS of cakes - and I will be sipping Bombay Sapphire & Tonic by the pool  !!

sorry,you misunderstood.  Our regular plain cake, no fillings, no frills...that is 45.00, Rainbow is double, 90.00 before you even start adding any other decorations!

post #35 of 70

The disparity in pricing is why I think these posts about 'what should I charge' get confusing and why there is no one answer to this question!  

 

I just recently started charging for my work now that we have a CFL here in Oklahoma and I can tell you that my prices are consistent...if not more...than most custom cake bakeries around here.  One reason is because I think my skill level is equal to most of them (with the exception of fondant...I don't cover in fondant)...and another is because I have to pay retail for ingredients-- I don't use cheap ingredients.  I can't justify wholesale purchasing at this point because I really don't want to become a full time bakery. 

 

Have I lost a job or two because of my pricing?  Yeah...and I'm glad.  Who wants to work for nothing?  I've done that and now that I have the experience, it's time to get back some of that sweat equity I put out there. 

 

That being said, I do like to hear the various price points from everywhere...however I would  never use someone else's pricing on CC or anywhere to make a decision on what I should be charging... nor would I ever purposely undercut someone else.  If you lessen your pricing just to get a job, then you are also lessening your own value and talent in the eyes of your customers. 

 

And that's my 2 cents worth! ;D

If I am ever on life support, unplug me...

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If I am ever on life support, unplug me...

Then plug me back in.  See if that works!

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post #36 of 70
Quote:
Originally Posted by ddaigle View Post
 

I guess it's all relative.   When you live in a town where it is relatively cheap to live there....than a $30 cake isn't shocking...or slave labor.   It's the norm.  

 



I think it has LESS to do with the cost of living and more to do with how many hands your business has available .... I am a single operator - I only use my own TWO hands - I don't have staff that I can get to do the more menial jobs while I concentrate on other things.... it takes me the same time to order stock for a small cake as a big cake - the kitchen requires the same clean up time for a 6inch or a 12inch

THIS is what decoraters need to think about when accepting these orders - its also WHY I put in place a minimum order - its the amount I have calculated that makes it worthwhile spending an hour cleaning up !  If its only a $45 order.... forget it !  NOT worth getting my kitchen messy

I am not into volume baking/decorating -  I don't lower my price JUST to secure the booking - I just tell them what my minimum is, AND if they are prepared to pay it - then yes, they might get 6 cupcakes for $150 - I don't feel bad..... or that I am ripping them off.  Its just a business practice

A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

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A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

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post #37 of 70
Quote:
Originally Posted by ApplegumPam View Post

I think it has LESS to do with the cost of living and more to do with how many hands your business has available .... I am a single operator - I only use my own TWO hands - I don't have staff that I can get to do the more menial jobs while I concentrate on other things.... it takes me the same time to order stock for a small cake as a big cake - the kitchen requires the same clean up time for a 6inch or a 12inch

From what I've seen the biggest issue for a business of any size is often the marketing strategy. Cost of living (and wage distribution) does play a part when researching how much disposable income is available in different demographic groups. If you market to people that can't afford your cakes you are wasting your money, and too often people will simply reduce their prices to match the demand of downmarket groups instead of shifting their marketing to a different target or switching to a different product with a lower cost structure.
post #38 of 70

"A non-doer is very often a critic-that is, someone who sits back and watches doers, and then waxes philosophically about how the doers are doing. It's easy to be a critic, but being a doer requires effort, risk, and change." Dr. Wayne W. Dyer

A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

Th...

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Reply

A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

Th...

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post #39 of 70
Quote:
Originally Posted by ApplegumPam View Post

"A non-doer is very often a critic-that is, someone who sits back and watches doers, and then waxes philosophically about how the doers are doing. It's easy to be a critic, but being a doer requires effort, risk, and change." Dr. Wayne W. Dyer

That's a great quote...before I helped launch our new bakery business my understanding of business concepts was more abstract. Actually going through the launch process and running the day-to-day of a successful operation gave me a new perspective, hopefully others here find that perspective useful. icon_smile.gif

I'm not sure how the quote applies to this thread though.
post #40 of 70

If you can't sell your 8" cake for more than $25 I don't know why you'd bother. You must REALLY love making cakes. Like enough that it's your full-time hobby. 

 

DDaigle your clients are getting an amazing deal if that's all you're charging for your beautiful cakes. Walmart doesn't even make a profit on their cakes and I think they charge more than you. 

elsewhere.
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elsewhere.
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post #41 of 70
Quote:
Originally Posted by kikiandkyle View Post

If you can't sell your 8" cake for more than $25 I don't know why you'd bother. You must REALLY love making cakes. Like enough that it's your full-time hobby. 

$25 can be doable if you keep it very basic and have an efficient process...for example, $12 in ingredients + allocated overhead (assuming a legal home bakery) and 45 minutes of labor corresponds to $12/hour with a 20% markup for profit.
post #42 of 70
Quote:
Originally Posted by 810whitechoc View Post
 

810whitechoc:  that cake is so beautiful.  love the penguins. love the way you cut it for the camera. I've got to visit Australia and try all your cakes.

mb

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~~We are living in a world today where lemonade is made from artificial flavors and furniture polish is made from real lemons. ~Alfred E. Newman  
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post #43 of 70
Quote:
Originally Posted by MBalaska View Post
 

810whitechoc:  that cake is so beautiful.  love the penguins. love the way you cut it for the camera. I've got to visit Australia and try all your cakes.

mb

I wish I could claim ownership of the cut, but the bride sent me this photo.  She said she didn't realise how crooked she cut the cake until after it was done.  None of the guests knew it was a rainbow until she cut it and she said everybody was laughing about her crooked cutting.  When she first came to me, she hesitantly asked me if it would be weird to put penguins on her wedding cake, I told her I loved the concept, it was the staff's favourite cake of the week.

 

You would be very welcome to come to Australia anytime!

post #44 of 70
Quote:
Originally Posted by kikiandkyle View Post
 

If you can't sell your 8" cake for more than $25 I don't know why you'd bother. You must REALLY love making cakes. Like enough that it's your full-time hobby. 

 

DDaigle your clients are getting an amazing deal if that's all you're charging for your beautiful cakes. Walmart doesn't even make a profit on their cakes and I think they charge more than you. 


Thanks Kiki....but just to clarify...the $25-$35 butter cream 8" cakes have no deco....just borders.  I charge accordingly (for my expenses & market) for the custom stuff.  It's the industry standard here.   I could sell an 8" butter cream cake for $95....but odds are I might have 1 cake a week from some crazy rich person.   But frankly, that price would not even be considered "here". 

Debbie - US Army (Retired) --aka "The Cake Sarge"

Good Cake Ain't Cheap! Cheap Cake Ain't Good!
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Debbie - US Army (Retired) --aka "The Cake Sarge"

Good Cake Ain't Cheap! Cheap Cake Ain't Good!
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post #45 of 70
Quote:
Originally Posted by howsweet View Post
 


There are areas where people can't afford custom cakes. Companies selling luxury products don't come into those areas and lower their prices by 2/3 -- it's not good business. Why anyone would sell cakes for less than minimum wage is intriguing to me. Why not just get a part time job?

 

I'm not referring to anyone specific...I just sincerely don't understand why people do this.

$45 for an 8" is an amazing profit if you make cakes in bulk. What do you guys do, like one a week?

I'm thinking about making these rainbow cakes in bulk and googled to get info. I guess I have my answer!

I just saw it on shaws of sunset last night and can't wait to make some!!!


Edited by cakevette - 2/12/14 at 9:31am
There isn't anything I won't try at least once if you pay me.
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There isn't anything I won't try at least once if you pay me.
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