I have recently received two cake orders for "non-family" and am quite clueless about costing so I've promised to get back to them regarding prices, etc.
The first one is to be large open book for a christening - simple vanilla sponge, and the other one's an 10" chocolate cake. Both will be simply decorated, covered in fondant.
So how do you guys work out your prices? Any and all tips most welcome.
Tough to answer b.c you are in Uk but I looked at local bakeries on line and compared prices to come up with mine. Hope that helps. Other wise I will have to BUMP!
BUMP - Bring Up My Post (your post) so it appears again on the main page hoping someone else will answer... Now, to your other question, what I usually do is multiply my cost by 4 (with simple decorations) and if it is more complicated decorations then charge extra for those. HTH!
or you can do it by multiplying your cost by 33% and then adding a 3% Hidden cost factor.
we break every down..in my shop..but still having trouble with pricing..lol
to the ounce. we purchase 5 pounds of flour for let's say...$1.99.
so you figure out that an ounce of this flour costs
first..5 pounds equals 80 ounces as there is 16 ounces to a pound.
So...one ounce of THIS flour is going to cost you.....02 cents.
(.024
so if you are using 8 ounces ( 8x.02=.16 cents)
You then take .16 cents x 33% you get .05
add .16+.05 = that is the REASONABLE cost increase.---but you do this at the very end. don't forget to do this for the icing, marzipan, rolled fondant...glaze..anything that goes into making your cake.
after you have all your weights and measures..you add up how much you are using in ingredients and then after you add them you mult. by 33%.
so......16 + .05 = .21 cents.
then you multiply by the 3% ( the very last total )
now..that is the cost of your cake.
then you have to add into consideration your time. How long does a cake take you from start to finish?
I know that once my 1/4 sheet cake is baked and cooled...( about an hour ) 1 hour
I store it...
It takes me about 2 hours to decorate...2 hours
1 hour plus 2 hours = 3 hours.
lets say your cake cost you .....5.95 in ingredients and you want to pay yourself...let's say...15.00 an hour..( high end..lol)
add....5.95 + 3(15.00)
your quarter sheet cake should be selling at $50.95USD
I know it's complicated, and algebriac... BUT you MUST price out your product or you will NEVER make a profit.
If you're doing all this work for S***TS and GIGGLES...then you may as well just give your cakes away..
my 2 cents..and I'm pretty harsh on this subject...lol.
sorry didnt' meant to scare anyone!
No, I'm not planning to give ALL my cakes away...lol
But seriously, I'm grateful for all your input because now I have a better understanding of what I'm doing.
I'm so happy to hear that I didnt' scare you..lol.
Too many people are just GUESTIMATING..and I do too on some recipes! but I'm not off the mark too much since I always have an idea how much I'm spending..lol
I try to stay away from the pricing wars on the board, too many people are just slapping cakes together and then asking HOW MUCH FOR THIS CAKE?
You really dont' have to be good in Math..just add and multiply..
simple way is to..add up your costs..multiply by 2, 2.5 or 3 whatever your market bears.
my method is just a little more detailed and takes into consideration...EVERYTHING you are using!...
and if my cake priced out at 58.95...and I wanted to give it to someone for 50 dollars...i wouldn't feel put upon because I am STILL getting my money!! and a grateful client...getting 8 bucks off their order!
if people are going into business..then run it like a business..for the ones that use the mixes....then, you should want to get 15.00 to 20 dollars a box....
multiply that by the number of cake mix boxes that you use and then multiply the total by 3%
oh, before you do that..you have to add the cost of the box and board..lol...this is a very unsofisticated way of pricing a cake, but it works to give you ball park and over!
Price out your ingredients that don't change...like flour sugar and eggs..extracts...so you have the prices already and the rest is simple..just input the ones that vary..like the fruits.
I NEVER redo my pricing....even when there is a sale on butter! I figure...that's when I make more of a profit! I use the NON SALE prices all the time!
lol
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