Another Pricing Question

Business By drgaddy Updated 6 Jul 2007 , 4:50pm by drgaddy

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drgaddy Posted 6 Jul 2007 , 10:32am
post #1 of 4

Hi, everyone! I just made a cake for an order and have a discussion with my hubby how much to charge for it. It were in fact two cakes - 40 carved from 9x13, each number from one cake. The lady did not want any decorations on top, except for the picture of Hello Kitty and "someone" from her crew. I attached a picture of the cakes for your info.
I told my hubby that I was going to charge $80 for the cakes, and he went balistic - "that is way too much" etc.. What do you think?
LL

3 replies
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yh9080 Posted 6 Jul 2007 , 12:09pm
post #2 of 4

Carved cakes are more expensive and from what I've seen generally start at $3.50+/serving so I don't think $80 would be too expensive.

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indydebi Posted 6 Jul 2007 , 12:20pm
post #3 of 4

He may be looking at just the amount of cake on the cardboard .... and not factoring in the scrap factor of the cake you carved away.

Scrap costs are a legitimate business expense. I worked in manufacturing and part of my job was setting pricing for the factory. We had to factor in scrap costs as part of the cost of manufacturing the item. Just because you didnt' hand them the carved-away cake, doesnt' mean you didn't buy the ingredients and bake it.

You baked two 9x13 sheet cakes PLUS the extra labor of carving them out instead of just slapping icing on them.

In my calculations, an 18x13 (two 9x13's) yields 54 servings (2x2" servings .... cut it in columns/rows of 9x6) x $1.50/serving = $81.

I say you were right on and they got the carving part for free.

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drgaddy Posted 6 Jul 2007 , 4:50pm
post #4 of 4

Thank you guys for your help. That is what I thought.

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