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Rainbow layer cakes. How are you charging?? - Page 4

post #46 of 70
Quote:
Originally Posted by cakevette View Post
 

$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!!!

Jason, that you again? :wink:

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post #47 of 70
Quote:
Originally Posted by JPinBklyn View Post
 

I think there are many more factors to consider. In my shop, we charge one price for a basic triple layer 8" cake with buttercream frosting. If a customer orders a 6 layer cake, it's twice the price at least, maybe more. The "labor intensive" part is not all about making the rainbow effect, although it does take time to correctly, evenly portion and color the batter. The added cost in terms of actual ingredients is the additional layers, and additional frosting. While those ingredients are not totally a double recipe (it's like a recipe and a half) it certainly does cost more! As to your time, it takes longer to portion the batter and color it, bake 6 pans, level, stack and frost 6 layers vs 3 layers. I think we also forget all the other costs, when someone dashes off a remark like it only takes 15 mins. No, it takes a longer amount of time for washing all the extra bowls and pans (water bills,electricity for the dishwasher, that costs you money), it takes more time in the oven using the gas or electric you're paying for. It needs a larger, higher box (our rainbow cake is about 10" high!). How do you expect to survive in this business, if you're not adding in all these costs? Water, gas, electricity, wear and tear on your equipment, your time spent purchasing, your time spent paying bills. The risks you take if you drop the darn thing.  If you're in business for yourself, or you own a small bakery, ALL of these things cost you money.  Sorry if I'm ranting, but I strongly resent the impression some customers have that this is as easy as what you remember your grandmother doing with a box of Duncan Hines, leisurely on a Sunday afternoon and therefore shouldn't really cost much for a cake. If it's so easy, go bake one, why are you in my store? Do you argue at the supermarket over how much a box of cereal costs? No, you just pay it.  It's a business, we sell certain products, and to make a living, those products are for sale at a profit, not merely covering costs of ingredients. You're doing this particular business presumable because you love it. But it's a business nonetheless and you have to get adequately paid or you will soon be out of the business. Do you think Ron Ben-Isreal got his start giving away his early cakes under cost? I bet you he did not!

 

I think if customers were more educated by us as to ALL the costs involved in 'just baking a cake', instead of "oh it's only 15 mins to add some food coloring",  it would go a long way towards everyone making a living! These TV shows don't help, because now the general public thinks Cupcake Wars is in real time, and it only takes an hour to bake and decorate 1000 cupcakes in 3 flavors with 3 different handmade decorations! How ridiculous. TV is not real life. Back to the rainbow cake, it's a 'specialty' cake, and should be charged as such, not merely a small add on to the cost of a regular cake.  NYC prices, I charge $95, pre-decorations. It's a fad right now, people will pay if they want one. If I'm not going to make money on it above and beyond costs, why make the cake at all? The name of my bakery isn't Charity with Frosting on Top! If a customer won't pay you fairly, then toss some rainbow sprinkles on the outside of a regular cake and be done with it!  At some point, take the leap, and don't bake anything you won't make money on. The only thing worse than not making money, is spending your own money to give away a cake to a stranger.

 

My 2 cents for what it's worth.


Awesome!;-D 

post #48 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

 

Amazing how something written 40 years ago is still relevant and very true.

This is a good thread...

~~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  
Halloween
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Cupcakes!
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Fishing / Hunting
(11 photos)
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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  
Halloween
(4 photos)
Cupcakes!
(13 photos)
Fishing / Hunting
(11 photos)
Reply
post #49 of 70
I don't have a minimum order amount. If you want a $30 cake, I can make you one. It won't be very big and won't have decoration but it will taste dang good. The way I see it, you have no idea how many potential customers will be at that birthday party that your cheap $30 cake is at, and who knows, they may order your next $850 sculpted cake from you because they were impressed by your product. Saying an order under a certain dollar amount isn't worth dirtying up my kitchen just isn't my forte, unless I'm already super booked icon_biggrin.gif
Getting baked since 2009! ;)
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Getting baked since 2009! ;)
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post #50 of 70
Quote:
Originally Posted by LaurenSadler View Post

I don't have a minimum order amount. If you want a $30 cake, I can make you one. It won't be very big and won't have decoration but it will taste dang good. The way I see it, you have no idea how many potential customers will be at that birthday party that your cheap $30 cake is at, and who knows, they may order your next $850 sculpted cake from you because they were impressed by your product. Saying an order under a certain dollar amount isn't worth dirtying up my kitchen just isn't my forte, unless I'm already super booked icon_biggrin.gif

I too, do smaller orders, but I have a minimum cupcake order of 12 of a single flavor, and I won't do a 6" without a minimum of 12 cupcakes, unless they are a regular customer. I know it might seem like too little to some, and too much to others, but I don't aim for a single order each week, I aim to stay busy and make money. While I prefer to do larger orders, of course, I feel obligated to make every penny I can, so I don't have to depend on my husband's income. Yes, It makes a mess, and yes, it stinks, but if I have a few small orders spread over the course of a few weeks, I bake and fill them all at once, then freeze them in a dedicated freezer set at -20 below 0. Keeps them crazy fresh.

Besides, last year I did a $36 cake and the gentlemen who bought the cake recommended me to one of his theater group. She got married last December and her cake I made her cost her a little over $800. It took about 16 hours. Not too shabby, IMHO. I know my last job I made that in 2 weeks.

Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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post #51 of 70
Quote:
Originally Posted by Annabakescakes View Post
 

I too, do smaller orders, but I have a minimum cupcake order of 12 of a single flavor, and I won't do a 6" without a minimum of 12 cupcakes, unless they are a regular customer. 

 

I also have my limitations.  Ive never had anyone order just a 6", alone.  A 6" alone was always a smash cake along side a birthday cake.  And all cupcakes have to be placed in orders of 12 and there's no mixing flavors within dozens, either.  Meaning, I'm not a cupcake bakery.  You can't order 12 cupcakes and get 3 key lime, 1 vanilla, 2 chocolate, 3 strawberry, 1 red velvet, 1 coconut and 1 snickers. 

Getting baked since 2009! ;)
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Getting baked since 2009! ;)
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post #52 of 70

I honestly agree with everything you say. I work out of my home selling cakes..hoping someday to own my own shop...but I am always worried if I am charging enough. I cannot compete with New York prices, this is a small rural town. but I do think I may not be charging enough..I charge for ingredients, and add a little more for my time...I was told never to charge for my labor hours...but how can I not?? it is time taken away from me and my family...

post #53 of 70
Quote:
Originally Posted by cherie7896 View Post

I honestly agree with everything you say. I work out of my home selling cakes..hoping someday to own my own shop...but I am always worried if I am charging enough. I cannot compete with New York prices, this is a small rural town. but I do think I may not be charging enough..I charge for ingredients, and add a little more for my time...I was told never to charge for my labor hours...but how can I not?? it is time taken away from me and my family...

I want to know who told you never to charge labor so I can slap them upside the head.

Who in the world would say something that stupid? And why in the world would you ever actually BELIEVE it?
post #54 of 70

GOOD GRIEF. Now I've seen it all. 

*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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post #55 of 70

I'm sorry, that was blurted out before honestly assessing if you were serious or not. But yes, if you are indeed for real and not making that up, because honestly, it's quite unbelievable that someone would tell another that, and that other person actually to listen....tell us more. You're only selling to friends and family right? You're not doing business for the general public that would otherwise be soliciting properly operating businesses?

*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
Birthday Cakes
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post #56 of 70
Quote:
Originally Posted by cherie7896 View Post

I honestly agree with everything you say. I work out of my home selling cakes..hoping someday to own my own shop...but I am always worried if I am charging enough. I cannot compete with New York prices, this is a small rural town. but I do think I may not be charging enough..I charge for ingredients, and add a little more for my time...I was told never to charge for my labor hours...but how can I not?? it is time taken away from me and my family...

Somebody told you to not charge for your work. Seriously? Wow. I feel for you. That's the worst advice anybody can give and at least you have sense enough to question it. That's absolutely incorrect, and you can tell them I said it. If they want to debate it, bring them here lol
post #57 of 70
You won't ever get into your shop not charging for labor. Good Lord who could be that dense to even suggest that.
post #58 of 70

No kidding, I am genuinely curious to know what that person's logic is. Other than getting cheap cake from you, that's the only thing I can think of. Another decorator wouldn't have suggested that...would they?8O The biggest factor in most cakes IS the labor. Shoot, I'll give you the ingredients for FREE, you're paying for my time.

*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
Birthday Cakes
(2 photos)
Birthday Cakes
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post #59 of 70

Okee - so I hope you are sitting down for this one then :-P

 

Where I live (the Netherlands) that is actually a fairly common advice. The question of "how much for this cake" is very lively here as well. And the most told advice ....

 

"charge your ingredients and then some extra for your cake money box"

 

And when you ask the advisor why in heck's name that advice was given, the answer almost always is

 

"because if you add labour to the price, the cake becomes very expensive"

 

 

ehhh .. duhhhh ... yes, my time is quite expensive actually.

 

We have a ton of hobby home bakers here who are seriously undercutting and harming the business. There are no regulations, so as long as you can find somebody to buy your cake, you can bake in your own kitchen. It's how I started anyway. And I still bake out of my own kitchen, but make sure that the kitchen is clean. I regularly get people over to pick up cakes, do weddingcake consultations in my home and the house needs to be spotless. But if you start to argue on the price, the answer almost always is the same "oh, it's a hobby, so i can't charge a lot' or "if I charge more, then people stop coming" (which sort of  defies the whole hobby thing, but that is different debate)

 

Some actually think they have a niche in the market, stating that not everybody can afford an expensive, unique and beautiful decorated cake, and therefore they make them for ridicoulous prices ($2 or less per slice is not uncommon) making it more accessible for others

 

But my all time favourite must be "just be glad we bake for cheap prices, we get a lot of customers and we then need to purchase all our stuff at the cake decoration shops (paid out of that cake money box) and if we did not do that ... then shops would not exist and you (the profs) would not have a place to purchase your tools" 8O - granted ... it get's a 10 out of 10 for creativity LOL

 

Anyway - the problems is worldwide i guess, and that advise really is not uncommon and almost always given by people with no business skills.

post #60 of 70
The problem is indeed worldwide. And it began with the first person who decided that eeeeeveryone deserves a custom cake. Sure they do, if they can afford to pay the decorator appropriately. Cause ya know, eeeeeeveryone deserves a Prada bag. Still waiting for Prada to take pity on me cause I don't have the budget but I deserve one!
*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
Birthday Cakes
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*Top 100 Designers in The USA, Brides Magazine, 2013*<---little ole' me!
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