I'm just starting out, and quite honestly this really confuses me! I've searched the site, but there are soooo many posts and not all of them are really helpful. I thought it might be nice to have it all in one spot.
Do you price everything by the slice or do you do a flat rate for some things (sheet cakes, for example)? What are your flat rates or per-slice rates?
What do you charge extra for, and how much?
How much are your cupcakes, both filled and unfilled? With various decorations?
How do you figure figure the servings for your cakes? Do you do the same # of servings for both party and wedding? The 1x2 inch piece seems kind of small for a bday party.
Do you charge differently for wedding and party cakes? Or stacked vs. non-stacked cakes?
Please feel free to add anything else I forgot! Thank you so much!
I pretty much charge a flat rate for all my cakes with the exception of wedding cakes and tiered party cakes, but it works out to approximately $1.25/serving for sheetcakes and simple layer cakes; prices for buttercream wedding or tiered cakes start at $2; and prices for fondant wedding/tiered or 3D sculpted cakes start at $3. My wedding and party cake serving sizes are the same (it's a selling point with brides). But flat-rate and per-slice prices vary widely in different parts of the country, so my best advice is to check prices with bakeries in your area and adjust yours accordingly. I charge extra for fondant bows or figures, gumpaste flowers, etc. And I charge extra for cake delivery, based on distance. HTH !!
...Do you price everything by the slice or do you do a flat rate for some things (sheet cakes, for example)? What are your flat rates or per-slice rates? What do you charge extra for, and how much? How do you figure figure the servings for your cakes?
I charge per serving. I assume a 2x2 for sheet cakes to determine servings (see the math in this thread) http://forum.cakecentral.com/cake-decorating-ftopict-302303-feeding.html+80 and I use the Wilton chart for approx servings for tiers - http://www.wilton.com/wedding/cakeinfo/cakedata.cfm. Here's how I cut the wedding cake to get those servings - http://cateritsimple.com/_wsn/page19.html
Even if you charge "a flat rate" for anything, it's just a simple matter of doing the math to see what that works out to be per serving. And a heads up to you ..... if you tell a customer "my sheet cakes are $xx.xx" the FIRST thing they are going to ask is "how many does that serve?" so you might as well be ready with the info to start with. ("A sheet to serve 50 is $75".)
I dont' charge for design elements, such as basketweave, lace, etc. I do BC only, but if I did fondant it would cost more (the reason I dont' do fondant is because I choose not to have to charge a bride that much for a cake).
Do you do the same # of servings for both party and wedding? The 1x2 inch piece seems kind of small for a bday party.
Do you charge differently for wedding and party cakes? Or stacked vs. non-stacked cakes?
The 1x2x4 slice is larger than you think. I intentionally watched the effect at my granddaughter's birthday party. For the kids, the 1x2x4 piece is perfect. They were in the 4-8 year old range and kids just don't need or eat a 4x6 piece of cake .... the 1x2x4 was perfect for kid size. The adults were also just fine with it. At this particular party, there were hamburgers, hot dogs,etc., so the cake was the dessert, not the meal.
I do not charge differently for wedding or party cakes. I will not put myself in the position of having to explain why a 10" round birthday cake costs less than a 10" round wedding tier. Same amount of cake, same amount of work, same price.
If they want bigger pieces, they are welcome to cut them bigger. They will just have to order (and pay for!) more cake. The example I give is when you order a KFC 3-strips meal, it comes with 3 chicken strips. For those who think that's not enough chicken, they have to order (and pay for!) more chicken. KFC is not going to throw in more food for free just because the customer eats like Jethro Bodine.
I do not charge different for stacked (cake on cake) vs tiered (with pillars). I just don't see there is that much extra work for different set-ups .... I can't justify a cost difference .... I dont' charge for design elements. I mean, stacked or pillared, they still require dowels, they are still assembled on site. No add'l labor costs are involved so why charge more?
These responses are great...thanks! And keep 'em coming!
Indydebi...what I mean by stacked vs. not stacked is cakes with 2 or more layers vs. sheet cakes or 1 layer cakes. I'm just starting and I know I will get better, but I hate doing cakes with more than 1 layer because of the doweling, etc.
If you bake two 1-layer cakes and put filling between them, you have a 2-layer cake.
If you have a 10" 2-layer cake and if you sit a 6" 2-layer cake on top of that, it's a stacked (cake-on-cake) cake. (tiered)
If you take a single layer cake, tort and fill it, you have a one-layer torted and filled cake (it looks like 2 layers but it's not a "2-layer" cake).
For any of the above combinations, it affects the number of servings (a single layer 11x15 will serve half the people that a 2-layer 11x15) so since I price per serving, the price would be more for the 2-layer.
I don't dowel for a 2-layer. I dowel for a 2-tier.
I price per slice, charging extra for 3D cakes. I researched prices from local bakers to compare and chose a price somewhere in the middle. Unfortunately, where I live in CA cakes are much cheaper than in LA or San Fran.
I ask for $3.20 per slice but I only do fondant. Other bakers in town charge $4 per slice for fondant.
There was an article in yesterday's paper about this business and pricing. It stated that a fondant cake in Los Angeles/San Diego can be up $12 per slice, so many brides order cakes from here and have them shipped, since even when you add the shipping cost it is much less expensive.
I am similar to Beckalita with approximately $1.25 per slice. Although I did sit down one day and figured out approximate cost for a 11x15 cake with board and box and I came to $9.00 so I actually doubled that plus alittle for time and figured that was a good place to start. I had a TERRIBLE time trying to figure out prices and I have increased my prices already and I just started doing cakes in January but friends and family were saying they were too cheap(always a nice thing to hear).. We only have one "bakery" in town but several home bakers. I have checked out prices at the bakery and I sit just above them but within $5.
HTH, good luck!
Hi
I do flat rate per size of the cake (based on the cost of the my ingredients) - i do not charge per slice since each person cuts a cake differently. This is inclusive of general buttercream and simple piping decorations.
Fondant is extra. Fondant/Gumpaste flowers are extra. Bows are extra
Cupcakes start at $18/dz - for basic cupcakes w/buttercream and confetti/jimmies. Any other decorations are extra.
I charge extra for any cakes which contain fruit or nuts - for example a carrot cake
I have a flat rate per serving. It's $2.00 a slice for celebration cakes and $3.00 a slice for wedding cakes with a minimum 50 servings. I charge more for wedding cakes because they come filled with something other than buttercream and my celebration cakes do not. 3-D carved cakes start at $3.50 per serving with a minumum of $50.00. My serving size is 1x2x4 for 2 layer cakes and 2x2 for a single layer sheet cake. I am with indydebi with the serving size rationale. 1x2x4 really isn't a teeny slice.
I charge $1.00 extra per serving for fondant.. if you want your cake covered in something intricate like cornelli lace or a mendhi pattern I will charge more too because that takes forever. I'll charge $5.00 and up per tier depending on degree of difficulty. Gumpaste flowers and fondant figures are extra too.
Cupcakes that are not filled are $1.50 each and filled start at $2.50 each.
I am right in line with most bakeries around here.. plus you get it all from scratch with great attention to detail.
(edited to add more info.. I realized i didn't quite answer all of your questions. 
)
I think one of the most important things to do when trying to determine price is to call your local bakeries to get an idea of how much they charge. My pricing will look a lot different for the same cake then someone that lives near a big city as I live in podunk.
I price by cake size instead of by serving and make a big deal of that on my website basically as a marketing thing because most bakeries price by servings and I'm trying to get a little edge that way (as in "everyone cuts cake differently so two bakers could charge you $1.75 per serving but if one bakers servings size is a lot smaller smaller you're paying a lot more for the same cake"). I'm pretty certain the majority of bakers in the area use the basic Wilton servings but most people don't know that when they're looking for a cake so my argument makes sense lol.
I don't charge more for tierd/stacked cakes. I figure the price of a few dollrods into my cost and figure if it's a single cake I make a little bit more to cover for those times when it's a huge cake and i make a little less based on the cost of all the dowls going in.
I started by figuring out exactly what it cost me to make the cake itself and then tripled that to see how close I was to the bakeries price. I was quite a bit under but for right now i'm okay w/ that. I have almost no overhead doing this from home and the bakery in town has litterally been there for decades and decades so most people just go w/ them because that's who did there sisters/aunts/mom's cake so I need to work my way in there. I also don't need to do this to support myself. I work a FT job that pays my bills and just want to do a few cakes every week for some extra money (and because it's fun!), so I can afford to be a little bit cheaper I think.
Sorry, I meant TIER...really I did.
I know you don't dowel a 2 layer cake. I was just wondering if your per slice amount was more for 2 or more TIERS because of the doweling, etc and the extra time it takes to do that.
Happens!
No, I do not charge more for multi-tiers because not all multi tiers have dowels (such as this pic of a cake on the acrylic stand: http://www.cakecentral.com/modules.php?name=gallery&file=displayimage&pid=415413 )
I just want to keep the pricing simple. When a bride sees my pricing, I want her to be able to figure out how much she is going to spend. As I research the competition and the trends, I've seen price lists go on and on and on and most of the stuff on their is "industry lingo" .... the poor bride has NO idea what the biz is talking about, so she's NO idea how to figure out how much her cake will cost!
Keeping it simple.
Hey, I just thought of something. Wedding cakes require a lot more time, with consultations for design, tastings, delivery, etc. Wouldn't it make sense that wedding cakes would cost more?
A very good question. Here's my take on it:
I'm not setting myself up to explain why there is a price difference for the same cake. "Hello, Debi? I'm having a small wedding for 30 people, so I just need a 10" round cake. How much?" Debi says, "$87.50" (35 x $2.50). Bride then says (after remembering the advice from the wedding magz's about not saying the "W" word): "Oh, Imeant it's for a birthday party!" Is Debi suppose to say,"Oh in that case the same cake will only be $50." 
Assume it's a party (wedding, birthday whatever) for 100 .... same cake, same work, same price.
It's also basic pricing strategies and economics. Lower production means higher overhead. Higher production means lower overhead. When I worked in mfg'ing and would be involved in price setting, there were some jobs we would not do under a certain volume because it would actually cost us money in overhead. So if a customer orders 25 pieces, it could cost him more than ordering 100 pieces, because of overhead costs. A wedding cake is a high volume order and the overhead can be absorbed better.
Why do you not do tastings for a $50 cake? Because you wont' make the money back that you laid out in overhead. Why will you do a tasting for a $300 cake. Because you CAN make the money back.
So why does my 10" 2-layer birthday cake cost the same as a 10" 2-layer wedding cake? Because I dont' care what you call it, it's still a 10" 2-layer cake. Same cake .... same work .... same price.
So why does my 10" 2-layer birthday cake cost the same as a 10" 2-layer wedding cake? Because I dont' care what you call it, it's still a 10" 2-layer cake. Same cake .... same work .... same price.
Exactly!!
And my servings are the same size whether it is a party cake or a wedding cake for this same reason. The same amount of cake is there so why should I absorb the cost for a larger party serving if I am charging the same? In this theory party cakes should have a larger price per serving to help with the additional cake in each serving.
So if you want to look at it as Larger party servings equal more cake and higher cost per serving. Yet a wedding cake takes more time before hand then in the end your price is going to equal out.
Hope that made sense b/c it does in my head!
leily...but, if the serving sizes are the same for both weddings and parties (which I guess have come to the conclusion is a good idea) then it DOESN'T even out.
debi...I guess I'm still confused. You say with a larger cake you have more opportunity to recoup your costs because the volume is higher. But wouldn't your costs still be the same (per unit/slice) as a smaller cake (provided the smaller cake used a whole cake recipe, etc)? I know you charge the same for everything, but do you do sheetcakes? I was thinking maybe simple sheetcakes and 1 tier cakes (with just borders, simple designs, etc) could be charged one price and more involved party cakes, wedding cakes, etc could be something else. Does that sound fair? If you do everything the same price then it sounds like the people who come in for very elaborate cakes are getting a great deal! 
You're right, they are getting a great deal. Also factor in that those who want just "iced with a ribbon border" don't get a discount for simplicity.
I can bake 2 10" rounds and 2 6" rounds in the same amount of time it takes me to bake 1 8" round. Same overhead .... better return. Like I said, it's basic info you would have picked up in a first year economics class (or if you're my age, just in your life experiences). As you figure per unit costs of overhead, the more units to spread those costs over, the lower your per unit overhead cost is.
Use your property taxes as an example. I'm just making up numbers for illustrative purposes. Let's say it costs $100,000 to operate your local fire department. If there are only 1000 houses in your area, then each person has to pay $100 in taxes to support the fire department. But if you have a higher volume of houses ...... say 10,000 houses ..... then each person only has to pay $10 in taxes to support the fire department. That's why every community wants industry to move in .... more businesses that pay taxes, more households that move in close to those jobs that pay taxes, then it's lower taxes for everyone because you have a bigger tax base to spread the cost (read: "Overhead") over.
Yes, I do sheet cakes. Price per 2x2 servings is $1.50. Non-sheet cakes a la carte is $2.50/serving.
I've seen price lists for 2-layer cakes that in my opinion will cause a problem for the business. Let's say they've set pricing at:
6" round = $15
10" round = $25
14" round = $60
wedding cake to serve 100 using these same size cakes = $200
A bride will VERY EASILY figure out that she can buy the 3 individual cakes for $100 for her wedding .... half of the cost of the posted wedding cake price. I am not getting into that conversation with her on why she is getting 'ripped off' on the wedding cake, like the websites and wedding magz have convinced her is happening.
Same cake .... .same work .... same price.
debi...I guess I'm still confused. You say with a larger cake you have more opportunity to recoup your costs because the volume is higher. But wouldn't your costs still be the same (per unit/slice) as a smaller cake (provided the smaller cake used a whole cake recipe, etc)? I know you charge the same for everything, but do you do sheetcakes? I was thinking maybe simple sheetcakes and 1 tier cakes (with just borders, simple designs, etc) could be charged one price and more involved party cakes, wedding cakes, etc could be something else. Does that sound fair? If you do everything the same price then it sounds like the people who come in for very elaborate cakes are getting a great deal!
Making a cake isn't a linear equation. It would NOT be the same per slice. If I am making an 8 inch or a 6 inch cake I would need to make one batch of frosting. It will take me the same amount of time to make that one batch and the same amount of money for that one batch, but if I divide it over the number of servings for the 8 in. that isn't the same price per serving as for the 6 inch. Also, there are some things I can save time on when I am making several cakes: I can sometimes bake more than one cake at a time. I can decorate one cake while one is baking, (there are lots of things I can do while cakes are baking). My prep and cleanup time is reduced per serving if I am making a lot of cake the additional cleanup is marginal.
I guess I didn't think about the fact that the time to mix batter/make frosting/clean up is about the same no matter how big the cake. It makes sense when you think of it that way. (and I did take economics in college...guess I just didn't retain a lot of it! 
)
Oh, and debi...am I understanding this right? All your sheet cakes are $1.50 per serving and all other cakes are $2.50? Those are pretty good prices (though I don't know if I could get that here
). If you do cupcakes, what do you charge each?
I work very hard to avoid doing cupcakes. Had a bride call the other day and I pretty much sent her to any grocery bakery. *IF* I was backed into a corner and HAD to do them, I would charge $5 each because I WANT them to go somewhere else for those. If I'm going to forced into it for whatever reason, it's going to be well worth my time and aggravation.
Just like those on here who don't like doing sheet cakes, and those who refuse to do sheet cakes, i don't like doing and refuse to do cupcakes.
leily...but, if the serving sizes are the same for both weddings and parties (which I guess have come to the conclusion is a good idea) then it DOESN'T even out.
The way I have my pricing set up it does even out. I may spend a little more time with a bride for the consultation, however I aim towards clients who want a double layer cake (and hopefully multiple tiers) for all events, not just weddings. My prices include delivery of ANY cake within a certain range.
I have my pricing seperated as the following:
Single layer cake with buttercream frosting
Double layer cake, buttercream filling, buttercream frosting
Double layer cake, one layer filling, buttercream frosting
Double layer cake, three layer filling, buttercream frosting
These are my starting points and most of the cakes I do land into one of the four catagories above. It is a little unconventional to have a price list broken out this way but not everyone wants a filling (and I refuse to use the term sheet cake-indydebi my hero!) but I want to cater to the people who do and I want to let them know what I CAN do! otherwise they will only want what they are used to seeing. I then offer fondant, ganache, cream cheese icing, and other specialty fillings etc.
With this pricing structure it doesn't matter weather it is a birthday, wedding, corporate, or a just because cake. If there is more detail into a wedding cake (or any other cake) that is above my starting prices then the price is raised. But to list out everything for a customer would just confuse them more. I have my reference price list but if any of my customers saw it most of them would be completely lost and confused with all of the options and different prices. So I keep it as simple as I can while showing them what I could do for them, but show I also offer what they are used to seeing.
Sorry if I got a little long winded. Hopefully I made some sense in the long run, if not I am sure I will be back =)
when I was shopping around for my wedding cake, I was put off by the 'per serving' pricing structure - plus all the extras they added in (such as the from home baker who added $50 delivery and said that picking it up wasn't an option -) I just felt very nickle and dimed.
so - like indydebi - my wedding prices and other cakes are the same.. a basic 6" round is one price, an 8" is another, the 10" is a little more. Unless they want something very elaborate - at which time we discuss a design fee.... the per serving gets too confusing for me... 6,8,10,12 inch equals 130 servings, a 6,10,14 is 128 servings... four tiers vs. three for the same price if I use per serving. what if they only want 120 servings.. then they are still getting the same cakes, just paying me less... I'd rather go set prices.
For weddings only - there is a start up fee which is non-negotiable. I explain that it goes for the consultation, tasting, non ingredient supplies, delivery and on site assembly and my committment to ensuring that their cake is one thing that they won't have to worry about. I haven't had a problem yet...
when I was shopping around for my wedding cake, I was put off by the 'per serving' pricing structure - plus all the extras they added in (such as the from home baker who added $50 delivery and said that picking it up wasn't an option -) I just felt very nickle and dimed.
I completely understand that and would be frustrated too. This is why all of my prices include delivery (doesnt' matter what function it is for) withen a certain distance. Now I HAVE to deliver b/c I can not have pick ups at my home b/c I live in a residential area. I however have this stated on EVERYTHING that has a price list about the deliver fee. This goes for all cakes though so I also state it with every order. If they don't want to pay extra then they can meet me in town, however anything over two tiers is for me to deliver if it is stacked.
Hmm.. as for indydebi I thought she charged per serving. But that is for her, I know different things work for different people.
As for the per serving. I have so many different shape pans (round, rectangle, hexagon, flower, heart, and the paisley pan set) and different sizes (my rounds go from 2" and can go up to 18") that for me I find it easier to ask how many servings they are looking for, tiers, shapes, etc and then find the correct size/shape pan for their servings. I am definitely not saying this is the only way, just why this works easier for me.
You're both right, ladies. I charge a flat rate per serving. I do not nickel and dime brides to death with a mile-long price list of prices for every little thing. I do not charge extra for basketweave, flavors, fillings, lacework, other design elements, etc. I just believe in keeping it simple.
Here is a post from another thread that may help explain my philosophy: (the whole thread is ----- > http://www.cakecentral.com/cake-decorating-ftopicp-3894203-.html#3894203). I cannot emphasize the last line enough .... find a system and stick to it!
I would like to also offer the thought that I use the serving charts to determine my pricing, not necessarily to determine the number of servings (although they do coincide).
There is nothing stopping anyone from taking a 10" cake and cutting it into 4 pieces. (Heck, me and my 14 year old wiped out a 10" single layer cake in one night not too long ago! But that's a story on the "Here's why we're FAT!" thread!) There is nothing stopping them from cutting it paper thin and getting 70 pieces out of it. The number of servings you tell them is only a suggestion and to give them a general idea.
When someone calls and wants a 2-layer round cake for 25 people, I know they will need a 10" cake. It will be more (wilton wedding cake) servings than they need, but they need more than an 8" and less than a 10" so they get the 10".
I then tell them "the cost for the cake is $87.50". I don't go into "well, this cake will actually serve 35 and my cost per serving is blah blah blah so your total is...." they dont' care. They just want to know how much the cake is. They just want to have enough cake to serve their guests. They could care less about how I came up with the price .... just give them enough cake and tell them the total cost. Period.
So when I mention that I use the Wilton Chart ... it's for PRICING PURPOSES. A way to have consistent and level pricing. A way to have a set method so I am not running around like a chicken with their head cut off wondering what I should charge for a cake everytime I get a cake order. (and oh yeah by the way it can also give you an idea of how many people it will serve ... )
Find a system ... stick to it.
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