I hope that this is not too personal for people 
but I was just curious about how profitable this business can be. Kind of like middle ground amount. Not the people that are all out making the most and not the lowest just kind of an average.
I would like to start selling cakes someday when I get more practice in and become good enough. I just have no idea what to expect on the income side of it.
Do most of you do this for the passion of it or does it pay well enough for your time?? Also when you have a wedding cake on a Sat, is that day pretty much shot or how much of that day is dedecated to the wedding cake??
These are questions my husband has been asking and telling me to research.
Thanks in advance to anyone willing to share,
Amanda
I haven't started selling cakes yet, but I'm curious about what responses will be! However, I think you'll need to do research in your local area and do the math yourself.
- price local cake places and bakeries- you will need to stay competitive with your pricing and in a price range that people in your area are willing to pay
- decide on what customer base you want to target and what kinds of cakes you would do for them
- calculate an average cost of ingredients for that type of cake, figuring in some money for other investments you'll need to make (advertising, equipment, licensing, insurance, etc)
I'm in the process of writing a business plan, which really helps to see the business as a whole and think through all of these things. There are great writing guides on americanexpress.com and score.org
Profit depends on what your initial investment is. And the depends on where you live and what the requirements are to obtain "legal" status.
I can't answer your question, because I am just starting out, and repaying myself the money I've already put into it. I probably won't have any "profit" for at least another year.
I have actually sold some of my cakes. You can make a profit out of it. I usually have to buy all the stuff to make each cake. I suggest when you see the cake mixes on sale stock up and stock up on what ever you can cause once you have all the ingredients the profit is all yours.
I have made one wedding cake and it basically took me all day to do it. So to your questions yes your Saturday will be shot. My husband helps me alot with the cakes. He does alot of the design and gives me tips. He is very creative.
It takes a lot of practice and alot of time. I've only been doing this for about a year but I love it. My only problem is how to charge. You work so hard on these cakes and you want to make it worth it. Some people would prefer to go to Walmart and buy the cakes but those cakes are pre made and they don't taste as good as we would make them. I have gotten so much raves over the taste of my cakes. Good luck to you!
The key is getting the wedding cake bookings. I spend less time on a wedding cake than I would on 10 small birthday cakes .... and I make more on the one wedding cake.
I also do catering, so I'm not a good measuring stick .... but I left my full time job last year, signed a lease on a shop, and we're doing ok. It can get tight during the off season, so plan for it.
albumangel gave you the best advice. Get started on writing a biz plan. It's not a weekend project. Mine took 9 months and ended up being 40+ pages long. It's a great exercise for your own benefit, plus you will need one if you go after financing.
Thank you all for your replies.
I am lucky that in my state I am able to start-up from home with little or no government red tape. I won't even need an inspection if I am not selling anything that need refrigeration like cheesecake. So my main out of pocket will be buying the cake pans and stands and such which I will buy each thing as I need it.
I will definately look into how much cake sells for in this area. How do you price slightly above what a bakery would sell for??
Thanks again,
Amanda
I live in NC, so I don't know if this will help you or not, but I just met someone at my kid's school who makes wedding cakes and such for people, and she charges $2.50 per slice. Now, you can get a wedding cake at Wal-Mart that will feed 60 people for about $100, and that's less than $1.00 per slice.
This person really opened my eyes to charging what the product is worth, and not charging for a "mass-produced" product. Make sure you take a look at what other shops (and individuals) around you are charging. Don't necessarily lower yourself to Wal-Mart or Publix prices. I mean, would a bride go to Wal-Mart for her wedding dress? No? Then why go there for her cake?
<M>
Do you have any friends or family in the area? If so, do an informal "poll" of their cake experiences- it's not the most scientific market research, but it may help. Ask questions like-
1. How often this past year did you purchase a decorated cake? For what events?
2. Where do you currently make those purchases?
3. How much have you paid? (Helps if they can break it down to a per-person charge)
4. Were you happy with the quality of the cake(s)? Taste? Decorations?
5. What was your best experience? Worst?
Depending on what you know about the person, ask more specifically about tiered/wedding cake purchases, too.
Then I actually visited some of those bakeries or websites and got pricing sheets or tried to ask a few questions, but not to take up their time or take them away from actual customers (be respectful).
If you find a specific place that does 'exactly' what you would want to offer, I would price very close to their prices. Most of the popular places around me don't offer the same things I would want to offer- they do airbrush, plastic decorations, a few buttercream roses, etc. So I need to price ABOVE their pricing. A few places only do highly custom wedding, tiered, and sculpted cakes and have been established for a long time and have tons of experience and a huge portfolio- I need to go BELOW their pricing.
That's the logic I've used. Other than that, you've got to run the numbers and see what kind of profit would make it "worth it" for you! And keep reading threads here on CC- it's been a valuable resource for me!!
Quote by @%username% on %date%
%body%