I hate making small cakes where there is hardly a profit. I have a 6month old that keeps me pretty occupied so it takes MUCH longer to do a cake. Only large cakes and wedding cakes are actually worth my time, others aren't worth turning on my oven. Do any of you have a minimum dollar order policy?
I don't necessarily have a dollar minimum, but if someone wants, for example, 1 dozen cookies, I just flat out tell them it's not worth firing up my oven and messing up my space for 12 cookies, and I send them to the local bakery or walmart OR they up the order to at least 5 or 6 dozen. I'm not a bakery where the product is just lying around waiting for someone to walk in and buy it. I'm custom orders only and I'm VOLUME custom orders only.
Then we have a lesson on what "Volume" means! 
I've just been working on a price sheet last night and this morning. I had a problem with the exact same thing your talking about!
5" rounds and 6" hearts - $10 minimum. When you think about it, it's a profit. You can get 4 cakes from one batch of batter. It costs about $5 to make the batter. Simple decorations. And people love the small cakes.
I was going to go $12-$15 but thought about it and I couldn't charge that for something so easy.
I have a $40 minimum. It's not worth it to shop, bake, make icing (filling), and decorate for a penny less. Even then it's hard to make a profit.
Duff has a $200 minimum. I wanna be Duff. 
http://www.charmcitycakes.com/noflash/index.cfm?rd=faq
I've just been working on a price sheet last night and this morning. I had a problem with the exact same thing your talking about!
5" rounds and 6" hearts - $10 minimum. When you think about it, it's a profit. You can get 4 cakes from one batch of batter. It costs about $5 to make the batter. Simple decorations. And people love the small cakes.
I was going to go $12-$15 but thought about it and I couldn't charge that for something so easy.
In my opinion, there is no profit there!! Don't forget about the cost of your cake board, covering your cake board, the box, the electricity (or gas) of your oven, electricity of mixing, etc. And don't forget the money you have spent on decorating supplies! I won't sell 6" cakes unless it is accompanying a larger order (for example...a smash cake with a half sheet for a first birthday), but by itself, definitely not worth it!
I would be hard-pressed to get $40 for any of my cakes where I live. Personally, I agree with you (Kelley) and I also think that my cakes are $40 cakes and then some.
It is a lot of work, time and effort to make any cake whatever the size. But when the local bakeries and the chain grocery stores and "super centers" sell cakes for $5-$15, you have to slowly build up to a higher price range after people know your work here. Weddings cake around here, and I mean nice cakes, go for not more than $250!!!
And I guess I could be one of those that say "well go get your cake at Walmart", but that would only hurt my business opportunities around here. So for the mean time, I'll sell my cakes for cheaper than what I know I should and what I know I could get for them some where else.
Sorry so long but it's very frustrating!!!!!!
I have a $40 minimum. It's not worth it to shop, bake, make icing (filling), and decorate for a penny less. Even then it's hard to make a profit.
Duff has a $200 minimum. I wanna be Duff.
http://www.charmcitycakes.com/noflash/index.cfm?rd=faq
that sounds like a fair minimum, I don't make enough cakes right now since the baby to keep icing made up. I think people just think we throw it in a pan and have it done in no time!
I would be hard-pressed to get $40 for any of my cakes where I live. Personally, I agree with you (Kelley) and I also think that my cakes are $40 cakes and then some.
It is a lot of work, time and effort to make any cake whatever the size. But when the local bakeries and the chain grocery stores and "super centers" sell cakes for $5-$15, you have to slowly build up to a higher price range after people know your work here. Weddings cake around here, and I mean nice cakes, go for not more than $250!!!
And I guess I could be one of those that say "well go get your cake at Walmart", but that would only hurt my business opportunities around here. So for the mean time, I'll sell my cakes for cheaper than what I know I should and what I know I could get for them some where else.
Sorry so long but it's very frustrating!!!!!!
I feel your pain, but if I continue to to make small cakes I will get burned out. We moved a year ago and I'm still trying to get my name out for weddings, so it's a catch 22 for me.....
But....it's hard to keep a house straightened up as it is with a kids, and to pull out my stuff and reclean for a little cake, it's just not worth my time, I would rather be playing in the floor with my baby!!
i dont have a minimum because i dont really promote the sale of my cakes (hobby), in the past i've basically given them as gifts or charged for ingredients only. at this point, i am at a skill level where i honestly believe that i can offer more than mylocal bakeries, so i am willing to start charging their full worth. with that said, since everything is custom, i would figure my cost first and then make sure it is at least double so that i make some profit. i am in the dfw suburbs, and still people get wide eyed thinking about the prices, but i have to be compensated to take time away from my 3 children and husband.
I am making profits (not huge) from the few cakes that I have sold. Like $10 for a 5" round - cost about $1.50 to make (4 from one batch of batter) - so that's making profit.
If you made a fondant-covered 8 x 3" round, fondant-covered cake board and with floral decorations, etc., what would you charge? Like the Drapes & Roses cake in my photos for example? I was just saying, not to be offensive, that I wished I could sell cakes for what I know they are worth. I will make some profit but not what I feel like I should.
Don't you think it's something that has to be worked up to?
mjs - I would charge $40 - $50 for that cake.
I also don't think you should sell your 5" cakes so cheap! They may only cost $1.50 in food cost, but you have to factor in the time it took you to shop, bake, decorate, the initial cost of your pans, and your electricity, gas and water costs. Your cakes are lovely, don't undervalue yourself! 
I won't make anything smaller than an 8" cake unless its a sample wedding cake for which I charge $15 (money put toward the wedding cake if they sign with me0.
thanks Kelley!
I thought that cake should go for about $50 too. Sad thing, I'd never get it here. I actually gave that cake to the girl that does my hair - I was practicing drapes. And really didn't have a buyer so wasn't to upset at all about that one.
And for the 5" ones, I'd thought about $12. $15 for the 6" hearts. The pricing thing will be my only stress with cake decorating I also figured that I could start out selling them at a lower cost then gradually increasing as business picks up. Anyone would understand that - even the crudest buyer knows that demand costs - as well as the product.
onceuponacake:
Now that's a thought!! Nothing smaller than an 8"! I'm thinking the average person knows about all the different size/styles of pans that are out there like we do. And I guess they really don't. They know wedding cakes, sheet cakes and the occasional special cake (heart for example).
Good thought for someone obviously having trouble with pricing 
I am making profits (not huge) from the few cakes that I have sold. Like $10 for a 5" round - cost about $1.50 to make (4 from one batch of batter) - so that's making profit.
If you made a fondant-covered 8 x 3" round, fondant-covered cake board and with floral decorations, etc., what would you charge? Like the Drapes & Roses cake in my photos for example? I was just saying, not to be offensive, that I wished I could sell cakes for what I know they are worth. I will make some profit but not what I feel like I should.
Don't you think it's something that has to be worked up to?
mjs4492, I do the same . I can make 4 smaller cakes at $15.00 each for same cost as making one larger cake at $50.00... and still make more profit from the 4 smaller cakes..
My theory...People are cheap and people are selfish. Don't even get me started on this one. I had one person tell me $1.50/filled cupcake was too much and then asked me for my recipe! Well guess what?... she was so busy being cheap she ended up paying $2.75/filled cupcake at a specialty baker 30 minutes from herself 2 hours before the party.
Good!!!!!! 
That irks me to end when they say its too much. The nerve of them!!! 
If I think someone's price is too high. I thank them and keep searching.
I agree and this is what happened to me last week - I made 8 small cakes for a store owner. We discussed price the week before. I wanted $7 each and she was worried she wouldn't be able to sell them for more than $10 - so far is far. I sold her 5 for $25, so 8 was $40. About $30 profit really. Ok, all is well. It was an eye-opener for me - the retail end of selling stuff. Anyway on Weds when I delivered the cakes she was going to sell them for $10 each and the 6" hearts for $12.50. I didn't say a word. I also haven't called her to see if you would like anymore......
This has truly nudged me even a bit further in wanting to become licensed. Thus my concerns about pricing. Selling nothing under and 8" is really a pretty good idea. Then it's up to me to offer something smaller.
What is a good rule of thumb for charging for fondant covered cakes?
A lot of people charge $1.00/serving more for fondant.
I don't charge more for it. I make my own MMF (dirt cheap), I enjoy doing fondant more, in fact I HATE buttercream, and I have a hard enough time talking people into using fondant anyway. It takes me less time to cover a cake in fondant than to mess around with trying to get buttercream smooth. If I had to buy my fondant, it would be a different story, I could never afford to do it.
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