ok, so i just did a big shower cake for my cousin and now my phone is ringing with cake orders........yeah!!! however, i'm having a hard time w/my pricing. I'm from a small town and have a hard time charging a lot, however, i thiink my skills are getting pretty good and i like doing "unique" cakes as opposed to the 1/4 cake with border and flower $15 kroger cakes. anyway, i figured that with every batch of batter and icing i spend $12.64, I have to make a good profit, i spend a long time on each cake i make, but am afraid a high price will scare people away. Right now i do mostly buttercream icing, still working on my fondant usuage. any ideas? what do you guys charge?
thanks.
kasie
there are different ways you can go about it. some people charge per serving. usually 2-3 dollars per serving for a buttercream cake, and 3-4 dollars per serving for a fondant cake. others add up their ingredients and pay themselves and hourly wage for their time and thats how they make a price. here is a link to a pricing matrix you may like.
http://forum.cakecentral.com/alices-cake-pricing-matrix-ftopicp-1542261.html#1542261
hope this helps,
well, i had two orders today and charged $40 for a 1/2 sheet cake (easy decor), and $50 for a 1/2 sheet cake and a 6'' smash cake. hubby thinks that's not enough since i only make like $15-$20. i agree, but am afraid to ask higher. i'm really frustrated at this point, people don't seem to understand how much time and money i put into a cake!
I'm afraid it's a bit of a catch 22. People don't understand the time and effort that goes into a cake, so they don't want to be charged a reasonable price, but if you don't charge a reasonable price, people don't understand the time and effort that goes into a cake 
If you're just starting out, trying to build up a reputation and some customers, I suggest you charge ALL your expenses times three. That means, cake ingredients, paper to line tins, water, gas, electricity, phone, I mean EVERYTHING! You can slowly raise your prices over time once you feel more confidant in your abilities and you have some loyal customers.
Remind them that you do CUSTOM cakes, and unlike the grocery store you spend HOURS not 10 minutes. I tell them it would not hurt my feelings in the slightest if they went to Costco. I figure I am the lexus dealer, someone came to look at my "cars" and then bought a hyundai. They just weren't in the market for what I was selling, I certainly don't feel bad 
This kind of threat is very hard to answer, because a lot depends on your area. A cake in large, expensive city where the average income is high might be 10 dollars a slice, and the same cake in an area where the income is more medium or lower would be 3 dollars a slice.
I find the best thing to do is go around to all the local bakeries in your area that are doing the same kind of work you do. (of course, not Walmart or Kroger, but other home bakers or small bakeries doing custom cakes) See how much they are charging, and price the same or slightly cheaper if you have less overhead, but not TOO Much cheaper or you will get them mad at you!
When I get calls from people who want the buttercream sheet cake with roses and Happy Birthday on it, I give them a super high price. If they want it, then ok, I make a nice profit off that cake. If they don't, no big deal. I want to build a reputation that I do really neat and different cakes. That is the beauty of this buisness, you can make it whatever you feel like making it.
Thanks, beccakelly, for the link. I was looking for it. I always feel guilty when I charge for a cake or cupcakes.
Hi, I am a total novice, so i can only help from the buyers point of view. If you are new in the business i would expect to pay a little less even if the cake is really beautiful... but i would definatley be a return customer. So if you were thinking 3x the cost is around $50 (taking everything into account.. materials and time)... then i would charge $45 but let them know you are giving them a discount for being one of your first 5 orders, after that prices will go up.
My point being if you can get your cakes out there initially to as many birthdays and other celebrations as possible, sooner or later word of mouth is gonna get you more orders and you'll have already proven that your cakes are good, people will automatically be willing to pay more once you stop the discounts.
I should also say that if you charge too little, people get suspisious... its weird isn't i... we all want a great deal, but if people see 2 things offered at two prices, so many will feel the more expensive one is better.
Good Luck, hope things work out for you.
I don't know if you are going to get my answer, but the best way to know abut prices is to check with the pastry shops or in the internet. regards Grace schlesinger from Guatemala
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