I'm sure I'm overthinking this (as usual) but I am trying to decide if I want to charge by the project or by the serving. I am a home baker and I'm not legal. Usually, I price by project and I multiply my costs x 2.5.
However, lately, I begun to think seriously about pricing by the serving. I've checked with the two bakeries in my area (not Wal-Mart or grocery store) and their baseprice for an 8" round cake is $22.00. One bakery says that is 20 servings and another says it is 12-15.
Since I have limited experience, I've thought about the base price for buttercream to be $1.25/serving although I would really like to charge $1.50/serving. I like the idea of charging by the serving as a baseprice since that is simple.
What is your advice/opinion? Thank you!
There are a couple of reasons I price by the serving. First, it is the industry standard. Carpet is sold by the yard, paint is sold by the gallon and cake is priced by the serving. If you tell them the cake costs $300, the first thing they are going to ask you is "how many people does it serve?"
Second, it is easier on the bride/client. When you give them at least a base price, they can compute what they can expect their cost to be; whether they can do a reception for 100 or for 300.
Third, it's easier on you. At least with a base price, you are giving the client the chance to see if you fit into their budget without you having to go thru the entire quoting process. For 2007, I've sent out 193 quotes .... no way do I have time to all of those from scratch. After receiving the preliminary info, if they see it fits in their budget, then they will contact me and we can talk details at that point.
I base price my all occasion cakes by size, and by the serving for my wedding cakes. example 8" rd or sq $30 10" rd or sq $40 Slabs start at $45.
Wedding cakes starting at $3 BC/ $3.50 fondant
Indydebi and Cakesondemand - thank you so much for your replies. I really appreciate it.
I think I will charge by the serving since that will be simpler. Now if I can just get more people to order! A lot of people think I'm too high since I don't charge the same as Wal-Mart.
Thank you again!
A lot of people think I'm too high since I don't charge the same as Wal-Mart.
And I believe that is the exactly the point! 
You're not mass decorating slabs that you buy frozen; you're offering custom baked and decorated special occasion cakes.
You're not a mass marketer, your niche is the discriminating customer who is looking for quality NOT quantity.
You Go Girl. 
I went to an ICES Day of Sharing in Ohio today and Geraldine Randalsome (sp) was the main demonstrator. She was asked if she prices by the slice for wedding cakes and she said NO!! I have a base price for my cakes then add to them. So for a wedding cake that is a 12, 9 and 6 her base price is 595.00 but she fills her cakes and put sugarpaste on hers. She said she can also get 150 slices out of that size wedding cake. Of course she charges thousands of dollars for many of her wedding cakes...but then her work is really quite remarkable.
A lot of people think I'm too high since I don't charge the same as Wal-Mart.
And I believe that is the exactly the point!
You're not mass decorating slabs that you buy frozen; you're offering custom baked and decorated special occasion cakes.
You're not a mass marketer, your niche is the discriminating customer who is looking for quality NOT quantity.
You Go Girl.
I completely agree 
with JanH they will NOT get the Walmart special, they will get a special cake just for them that will taste so good they will be back for more. If they dont like your prices it's too bad. You are not in competition with Walmart. You might want to offer them a small taste test.
I forget who wrote this before but they make several batches ahead of time (I want to say 10 cupcake flavors maybe or very little cakes and some samples of frostings and fillings) Now they sell theirs for samplers.
I did 4 different little cupcake flavors from 1 basic batch - I colored them for my own sanity and provided them to my friends for them to pick their last cake. The enjoyed 4 little teacakes one evening and let me know the next day what the preferred. It was great.
I will figure out who wrote this and thank them properly!
Good Luck.
I went to an ICES Day of Sharing in Ohio today and Geraldine Randalsome (sp) was the main demonstrator. She was asked if she prices by the slice for wedding cakes and she said NO!! I have a base price for my cakes then add to them. So for a wedding cake that is a 12, 9 and 6 her base price is 595.00 but she fills her cakes and put sugarpaste on hers. She said she can also get 150 slices out of that size wedding cake. Of course she charges thousands of dollars for many of her wedding cakes...but then her work is really quite remarkable.
I WAS THERE TOO!!!!!! I WISH I WOULD HAVE KNOWN YOU WERE GOING- WE COULD HAVE MET!!!!
-Michelle
I went to an ICES Day of Sharing in Ohio today and Geraldine Randalsome (sp) was the main demonstrator. She was asked if she prices by the slice for wedding cakes and she said NO!! I have a base price for my cakes then add to them. So for a wedding cake that is a 12, 9 and 6 her base price is 595.00 but she fills her cakes and put sugarpaste on hers. She said she can also get 150 slices out of that size wedding cake. Of course she charges thousands of dollars for many of her wedding cakes...but then her work is really quite remarkable.
Her base price works out to $3.96 a slice.
Here's how I imagine a conversation with one of my brides with pricing like that:
HOw much is a 3-tier cake?
595
how big is that?
12/9/6
how many people does that serve?
150
Oh....how much is that cake?
790
how big is that?
14/12/8
how many people does that serve?
200
oh....how much is THAT cake?
(and so on.....)
As compared to by-the-slice pricing:
"How much is a 3-tier cake?"
"$3.96 per person/serving"
---------------------------------
I just don't have time for the "price per cake" conversations! I salute those who do .... I just choose not to tie up my time like that.
(By the way, the Wilton cutting chart shows a 12/9/6 is 100 servings ... I'd hate to see how small she cuts those to get 150!)
It would have been great to see a demo by someone with her level of talent!
I forget who wrote this before but they make several batches ahead of time (I want to say 10 cupcake flavors maybe or very little cakes and some samples of frostings and fillings) Now they sell theirs for samplers. ....
I will figure out who wrote this and thank them properly!
Good Luck.
I am so proud I found the original tread.
The author is: VACakelady
from the posting called : Cake Tasting for a Birthday Cake??
http://www.cakecentral.com/cake-decorating-ftopict-163251-sampler.html
Here's something that I do if a non-wedding customer wants to taste samples. I posted this in another thread and people seemed to like the idea. If the customer wants to come by to discuss details for something then I can usually work them in, but they take the samples home with them and have their own "tasting".
Another similar thread: http://forum.cakecentral.com/modules.php?name=Forums&file=viewtopic&t=149791&postdays=0&postorder=asc&&start=30
I have a sampler box that I offer to customers for a small price. It contains snack size bags of 9 different cake flavors, and little sample cups of popular fillings and buttercream. The customer can purchase this, take it home and play around with combinations. I have the samples on hand all the time, I just bake an 8" square (one mix) and cut it into 64 little pieces. 5 pieces fit in a snack bag (I get to eat the leftover corners) and I freeze them. This way I don't have to do an "official" tasting, the customer gets to taste at their leisure.
Wow, I hope this all looks right one I submit it.
Good Night and Good Luck 
Thank you all so much for your feedback. I really like the idea of the sampler box. Since all I have right now is a refrigerator freezer, I will tuck that idea back until I get a small "cake" freezer. (Right now I borrow my moms for cakes).
I have also decided that since I don't have very many children's cakes or wedding cakes in my portfolio, I am going to make some dummy cakes. Maybe that will help too.
Hopefully, I'll be able to pick up some more business this summer. I need to have some dental work done and the extra $$ would come in handy.
Thank you all so much for your response!
Thank you all so much for your feedback. I really like the idea of the sampler box. Since all I have right now is a refrigerator freezer, I will tuck that idea back until I get a small "cake" freezer. (Right now I borrow my moms for cakes).
Only suggestion I will add, since you dont have a freezer yet is to save up and get a Standing up one with as many shelves as you can get.
They are awesome. At Christmas when we make cookies and what not, I reg-org the freezer a few days before and give myself 4 shelves for the quick freeze we need, having 4 aunts/cousins come over makes it great. But it's also great for cakes.
Good Luck.
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