How do you price a cake and not feel like you're over or under pricing it. I understand that you have to cover what you spent to make the cake, but how do you price it so that you make something off of it, don't you have to make some sort of a profit?? Mind you i've only been making cakes for friends and family so i really don't charge them, so I need some ideas on what to do here.
Thanks
Nursey
I have learned on here to charge 2 to 3 times what your cost is. So if it cost you 10.00 to make a cake. You would charge anywhere from $20.00-$30.00. I still undercharge.
BTW, Welcome to cake central 
You are going to love it here 
I use the pricematrix from this site. - had to tweak it some to suit me, but it really works well!
welcome nursey!
you'll probably get addicted to this site like I am!
I usually take cost x 3 or 4. usually 4.
This helps cover expense, time and use of your things, electric, etc.
good luck to you!
Well... here are my thoughts....I just really hate hearing that "charge 3 x the cost of ingredients". Is it just me??? Am I the only one?
If you are just starting out that it might not be a bad idea as you are getting experience. But later I think you are doing yourself a disservice doing it that way. I think at that point you need something else.
I mean no offense to you Monica0271 or anyone else who does it that way. But here is my reasoning on this:
It's just that I think it doesn't take a lot of things into account like for example level of difficulty on a cake. If it's a 3d cake or has lots of piping etc.
I think it's just easier for most of you to do it that way cause we all know what a nightmare pricing cakes and agonizing over it and it's someplace to start. But don't stick with it as you get more experience and business. Do you think car manufactors or interior designers charge 3 x the cost? I bet they charge a whole lot more. : )
I usually use a version of the price matrix that I found somewhere.... What it does is figure the cost three different ways and then gives you the average as well.
First way is by (yikes) 3 times the cost, second way is by cost of ingrediens + time and the amount you want to get paid per hour and the third way is per serving. It lets you include all the boards, fondant, extras, dowels etc that you use in a cake. (You input your price for these)
My home computer is in storage so I can't look at it right now sorry but it was something along those lines. When we get our new house in Eagle River I will be able to have a legal kitchen. (come on Spring Break!) And I will be using the matrix to help with pricing. I like looking at the average of the three and then sometimes I still throw those out the window and do something else but it's good to have that knowledge.
These are just my thoughts, feel free to take them with a grain of salt or ignore them completely.
Do what works for you in the end. : )
Well... here are my thoughts....I just really hate hearing that "charge 3 x the cost of ingredients". Is it just me??? Am I the only one?
If you are just starting out that it might not be a bad idea as you are getting experience. But later I think you are doing yourself a disservice doing it that way. I think at that point you need something else.
I mean no offense to you Monica0271 or anyone else who does it that way. But here is my reasoning on this:
It's just that I think it doesn't take a lot of things into account like for example level of difficulty on a cake. If it's a 3d cake or has lots of piping etc.
I think it's just easier for most of you to do it that way cause we all know what a nightmare pricing cakes and agonizing over it and it's someplace to start. But don't stick with it as you get more experience and business. Do you think car manufactors or interior designers charge 3 x the cost? I bet they charge a whole lot more. : )
I usually use a version of the price matrix that I found somewhere.... What it does is figure the cost three different ways and then gives you the average as well.
First way is by (yikes) 3 times the cost, second way is by cost of ingrediens + time and the amount you want to get paid per hour and the third way is per serving. It lets you include all the boards, fondant, extras, dowels etc that you use in a cake. (You input your price for these)
My home computer is in storage so I can't look at it right now sorry but it was something along those lines. When we get our new house in Eagle River I will be able to have a legal kitchen. (come on Spring Break!) And I will be using the matrix to help with pricing. I like looking at the average of the three and then sometimes I still throw those out the window and do something else but it's good to have that knowledge.
These are just my thoughts, feel free to take them with a grain of salt or ignore them completely.
Do what works for you in the end. : )
I TOTALLY understand what you are saying No offense taken
I have not done 3-d cakes or fondant cakes. That pricing is just how I got started learing how to price.
Thank you for your input. I learned something 
Dang, I love it here
riana:
do you just type in "pricematrix" here? I don't ever seem to have luck that way (searching).
I made 3 columns for pricing: ingredients X 3, price per slice ($1.25 - going rate around here) and found the average of the two. Looking at this kind of puts it into perspective for you. You can use that for averaging cakes in your area, etc.
I charge per serving depending on what the filling and cake is and also have a minimum price for a basic cake ($50, which also happens to be what I start with for a 9x13 sheet cake with buttercream filling and basic border/writing). So, it could be $2 a serving, but then you have to order for at least 25 people (which is $50). Basically I don't turn my oven on for less than $50.
Fondant coverings doubles the per serving cost. I add a per item upcharge for gumpaste flowers/flower sprays (varies per item).
I found it!!!
Basically all this is, is pricing ingredients right? Well then what? I've already done that and came up with about $5 for one cake - for ingredients. Does not include fondant charge, time involved, etc.
The version I found on here does have all that included. There is a col called cocopan and there is some col for time to bake
& decorate, its just a matter of changing it to suit your own preferences/ requirements. Like I said it took a bitof tweaking, but now I have a tool that will give me quite an accurate price. I also allow that som cakes wiltae more time, so Iincluded a line on the pric sheet where I can add some extra $ for modelling/flowers.
BTW Cake boss is an excellent program, and if their price calculator works it will be an amazing tool!!!
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