Charging What You Charge (Pondering And Venting)
Decorating By Joshsmom Updated 10 Mar 2007 , 1:32am by sweetsbymarie
Ok, I have been decorating cakes for a couple years now, totally self-taught. When I first started I was unsure of myself (still a little) and probably tended to way undercharge when anyone wanted a cake. Alot too I did for family just to get some practice in.
Little background ~~ While I love decorating cakes and now cookies I do work full time in addition to having a just turned 5 year old that goes to preschool everyday until K starts in the fall, and of course a wonderful husband and home to take care of.
I have finally come to realize that I can no longer undercharge for what I'm going to make for someone.
Do any of you feel guilty for charging the prices you do??
In the area I live NO ONE does character cakes, NO ONE makes FBCT or chocolate transfers. I love doing these but most of the transfers I've done are large and of course time consuming. I have the bakery's that do wedding cakes but I'm not into doing those.
When I've gone to the cake matrix to get a cost I'm shocked myself on what I should be charging which I have not been doing.
I know cake decorating is an art but how do you justify some of the prices we should be charging??
Ok, maybe I'm rambling now.... I'm finally getting smarter now and don't want to "give away" my cakes anymore.
Charge yourself an hourly wage. Add up all your cake supplies and the amount of electricity and kitchen rental. Add all of them together. You've got it.
If you don't like the pricing chart. You don't have to use it.
I do, because otherwise it just isn't worth it to make a cake for anybody other than family.
I sometimes charge silly money - but no-one has ever complained or refused to pay it. I work as a school teacher four days a week and have one day a week to do cakes. I make sure I get paid what I would do if I were in school for the cakes I do- so my cakes are pricey. People know that when they come to me as the prices are on my web-site - so no suprises. I panic everytime someone asks me how much for something, but I stick to my guns and charge what is fair for my time and design work - I always think they'll turn round and say 'HOW MUCH?!!' but so far this hasn't happened. People have said 'I only have a small budget - what can you do?' I just refer them elsewhere (I'd love to reply - well, I'll use shoddy ingredients, wrap a ribbon around your cake and pipe 'happy birthday' on it)
I'm worth what I charge - and so will you be when you start charging proper money. if you're underselling yourself people don't appreciate how much you put into it.
I understand how you feel. I started a little over a year ago with my first cake ever, and quickly realized that I hate pricing out cakes. You have to be compensated for your time. Your cakes are very good. You should feel confident with fair pricing.
My theory is that if the person doesn't like the price, then they don't have to order the cake. It's that simple. I use my local area and I account for the fact that I'm not a professional to price out my cakes. I generally prefer to make cakes for friends and family as gifts, but when someone asks for a cake, I give them a solid price quote and don't feel guilty about it. I know the time and effort that goes into cakes.
Do people sometimes pick out grand cakes and "suggest" pricing? Sure. Do I laugh at them? Well, no... 
but I do offer cakes in their range and give them the quote for the cake they chose. No guilt. I'm okay with someone not ordering a cake from me. You have to realize that not everyone has a concept of cake pricing, so set your prices and don't feel guilty about it!!
Good luck to you,
angie
I remember the first time I charged someone $100 for a child's birthday cake. It was a 12x18 2 layer, with a 3 D construction dump truck on top with some dirt piles and a road.
I worked my buns off on that cake, and when I delivered it to the lady and she asked, "How much do I owe you?" --I didn't blink an eye when I said, "$100."
She ended up giving me a tip with it, explaining she didn't have anything smaller, blahh..blah..blah...Of course the materials didn't cost that much. But my time was around 6 hours in that cake!
I felt really bad, until I looked at a local caterer's website. Her prices were double what mine were for the same kind of cake. 
-M-
I have been doing this for 5 years and I started out the same way...not sure of myself and ended up not charging enough. Now that I am more experienced and if I may so, a LOT better, I still haven't raised my prices enough. Every now and then I resent that I am not pricing myself high enough, but I just can't bring myself to raise them. I feel like my loyal customers are used to a certain price range and it's not their fault that I am better than that now. Besides I love what I do and consider it a privilege to make people happy with a cake. Wierd...I know.
I struggle with this, too. I know I do great work, and I've priced other bakers in my area and some of them charge at least double what I do. I worried about raising my prices and running off my customers, but then my husband reminded me that when our landlord increases our rent, we don't move away, and when our grocery store increases the price of produce, we don't stop buying it, etc. I think with more experience, my work product gets that much better, and I should charge more. Of course, this is easier said than done, and sometimes I still feel apologetic when quoting what is in reality, a fair price!
Timing is everything!
Yesterday I had someone here at work who wanted to know if I could do a "grim reaper" 1/2 sheet cake. It was for a surprise birthday next week, and they could find anyone that would do what they wanted. I told her my price ($45) and yes I could do it, but I would need all of the info soon. Well, today she told me her sister had already ordered one from Wal-mart!
I don't need another cake order bad enough to lower my price. Would they ask their hairdresser or any other "talent" to lower their price? I don't think so!!!!
How much do you all charge for a 12X18 single layer cake, not cake mix. With a large FBCT and lettering? I charged $50.00 each. I did two of them. It took me about three hours to do both transfers and like five hours to bake and decorate them. I'm referring to the Hagie ones that I posted in this forum, different topic (Do these cakes look okay). Go all the way to the bottom of the thread and I have attatched pics of them. I started out the same way many of you did. Self taught and getting better all the time. I have raised my prices a few times in the past three years but am thinking I may need to raise them again! Thanks! Anna
I feel the same way. I just had two paid cakes the last two days, which is a lot for me! i have only been decorating about a year and normally make cakes for only family and dont charge. I feel so bad about when people i know what a cake and want to know how much. I think i may be undercharging but i dont want to make them upset since i am close to them. I think i am going to have to start sticking to my guns more and put a price on each size and stick with it!
Anna31, Looking at your two cakes and at that size I would guess that I would have charged $32 for each. But then, as I said earlier I probably undercharge. I also am mostly a cake mix girl. I make some from scratch and then I charge for the price of ingredients over what a cake mix cake costs. For example a cake mix cake plus scratch frosting costs me approx $5. A from scratch cake might cost me $10 to make so I add $5 to the cost of the cake. So for the cakes you made from scratch I would charge $37 each. I also dont do FBCT. I have my own method that works great for me and doesnt have all the freezing time involved. I also don't think it would take me a total of 8 hours for both of those cakes. So...less time, means less money if you pay yourself (charge) hourly.
I only do a couple of paid orders a month, I enjoy what i do and feel pretty good about it, when people ask me "what I would charge for...." I tell them, carry a preprinted guide with me so I don't forget or underquote. Most look shocked and recover quickly and don't order, I am way cool with that, I don't want to be that busy, and only want to do cakes for people that really appreciate what goes into one, most have no idea, everyone here has the "Walmart" mentality. I have no quilt what so ever. I keep myself busy doing cakes for sons school or the Humane Society so I have total creative control.
Heather
I used to feel bad for charging my prices because I am self taught. But I got over that guilt quickly because the grocery store cakes don't compare to mine which is the reason why I started to make my own. I know what they are worth now. And I also make my husband quote the price and NOONE dares to haggle with him 
Maybe cause he's a man!
The 12x18 cake for $50 was what I would have charged for just single layer torted. That is a lot of cake !
Yes, I agree with you Heather! Cakes are truly my passion and I am always striving to learn new techniques. Cake decorating is truly an art form. Our medium is icing and such rather than paper and pencil. That is why I don't feel bad about charging what I do. I use the best ingred. I can get my hands on and always do my best. I think we should charge what we feel our time and talents are worth and let it be. You go girl!
Anna
like so many others, I have 3 kids, a job and a homebound grandpa to care for, "CEO of the Allen Family", cake time for me is rare and wonderful, NO ONE is going make me feel bad about what I charge, I put my heart into it and know that they are getting quality work that is hard to come by in this town.
Ok, go ahead and shot me. I'm going to say it anyway.
I do both box and scratch depending on the cake. Sometimes you can't beat the box cake. I don't charge differently for one or the other.
You are paying me for my decorating and time. My cakes taste great either way.
There I said it.
It's very hard to decide what your time is worth and it's a very personal decision. For me it was doubly hard, since I'm a "how hard can it be ?" person who paints and wallpapers her own house, grows her own flowers, and made her own wedding cake, so I don't like to pay other people to do "crafty things".
Come up with a formula and stick to it. I use 30% as a cost basis, then use an hourly wage charge. For example, I have an order for a chocolate raspberry dacquoise tomorrow, which is a very expensive cake ( over $1.50 per person just for ingredients) So for 20 people that's $30. If I want to maintain food costs of 30%, Then I need to charge $100. For every $50 that is spent, I allot 1 hour of work time. If the cake requires more than that, I bill out $25 per hour. A Dacquoise is kind of fussy, and will take me close to 3 hours. 2 hours are included in the $100 base price, so the total cost is $ 115.
I don't sell cakes, but I often hear that costs x 3 is a good starting point. Also, your cakes are "custom;" they can't get these at other places for a steal!
I pay a lot more for a custom haircut instead of going to a "chop shop," and it shows. If it matters to them to serve a GOOD cake vs. a smash-quality cake, then I would think they'd pay the difference without enduring too much pain.
I agree you guys. I didn't mean you charged too much Anna, I meant I don't charge enough. This is an art form and it is something that I do for myself as well as my customers. That's why I am OK with not charging enough. I get as much out of it (creative release) as my customers get. Plus I just love the challenge that each new cake brings. One of these days I'll increase my prices, but for now I like being able to provide a quality product to those people on a Wal-Mart budget.
I go to a chop shop 
I'm finally confident in my sheet cake prices. They cost more than a grocery store, but taste waaaaaaaaaaaayyyyyy better and they get custom designs.
I am not yet confident in my 3d and stacked cakes as I haven't done that many, but hopefully I'll get there.
lsawyer,
No, I was just messing with you. I know you didn't man anything by it. I thought what you said was really funny. And, I do go to the chop shop but that's because I want to get in and get out.
Besides I've been married 34 yrs. He doesn't even know what color my hair is much lessen how it's cut.
Hi. I decided to set my pricing per cup of batter in the cake, then add for extreme detail. I charge $4.00 per cup of batter. My cakes taste great are not frozen and the buttercream has real butter not like the stores around me.
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