Long story short, I am reconfiguring my pricing. I was charging $1.50 per serving, but felt like I was making hardly any money on the last three cakes I made.
As an example, I figured out that it costs me $9.36 to make a 9x13 chocolate cake with chocolate mousse filling and bc icing.
Going with the theory of multiplying my cost x3 that gives me a price of $28.08. Let's round that to $28.
So then to figure out per serving cost, I should divide the price by # of servings, right? Using my serving chart, I get 28 servings from a 9x13. That works out to $1 per serving.
I can't see charging only $1 a serving!! Please help me with this!! There are so many threads on pricing, that trying to narrow down my search and go thru those only made me look for more Tylenol! 
Thanks for all your help!
I don't go by the serving size to get my price. I go by the cost of the ingredients & disposables (board, box, colourings etc), then estimate how long it'll take me to do a certain design and charge for my time by the hour. So say a 9x13 costs me 10 euros to make, and I'm estimating it'll take me 4 hours. I insist on earning no less than 10 euros an hour for my time and talent, so I'll be charging 50 euros total for that sheet cake. I find it's fairer to me that way and I don't end up busting my butt for a pittance, but that's just the way I do it! I have plenty of customers, and the cheap ones can just go and get a gross generic Dutch cake, I don't care!
I hear you on this one! My husband and I were just talking about this very thing. Haven't come to a conclusion yet, but don't forget to add on for your labor in making the cake. From what i've gathered here pricing has alot to do with where you live. Not based on grocery stores, but actual bakeries. For myself, I think I'm going to just price it per serving, and only add extra for fondant. I'm sure I didn't help you at all. Just wanted to let you know your not alone 
One of the things I've been toying around with is creating sort of a "build a cake" price list. I don't think it would be something to use on every cake all the time, for example, not on custom designed cakes. But I have been thinking about a "base price" for each cake size which would include bc icing and shell border. Then having "add on" price for options. X amount for writing, x amount for a flower spray, x amount for basket weave, X amount for a second color of icing on the sides. In other words offering a variety of options for the customer where the customer could decide what they want based on their budget. I was thinking of using this more on the "low end" cakes. Maybe offer five or six designs at one price, fix or six designs at the next price break, and five or six at a higher price. People who are really cheap are going to go to Walmart anyway. But there are businesses, churches, clubs, that want cakes and have a specific budget to work with. I think those customers would appreciate a structured price list.
did you consider the cost of the cake boards, the box, the drum, the electricity to run your oven, the gas and mileage to buy your ingredients? those need to get put into the cost of the cake before you multiply it.
i don't use this method though, i tested out different pricing on made up cakes and decided which price per serving left me with the profit i wanted/needed to make. so i said to myself, if someone wants a wedding cake iced in buttercream to serve 100, and i charge 2.00, 2.50, 3.00 per serving what would i make after the cost? divide that by estimated hours, and what did i make an hour? but what is also fair for the market value in my area? i did these test scenarios in every variation i could htink of, and decided that i needed to make a minimum of $2.50 per serving for buttercream to make it worth it. i did the same thing for a fondant cake. i then knew i could charge this amount, no matter what flavor cake or filling i used and still make a good profit. so i don't nickel and dime brides for every little detail, i stick to my set price per serving if at all possible. the brides love that my pricing is easy to figure out, and it saves me a headache to be able to follow my pricing on nearly every order. the only exceptions would be gumpaste flowers, adn a ton of extra fondant and gumpaste decoration. am i making sense? lol. my website has my pricing listed on it, if you want to check it out.
I have never thought the ingredients (x) 3 method was practical. The ingredients aren't the bulk cost of the cake -- it's your time. So add up your ingredient costs, your costs for boxes, boards, dowels, foil, board wrap, etc. Then think about how many hours the cake will take you to make. By the time you've shopped and baked a cake and made the icing you probably already have a couple hours invested in it. Set a base hourly rate you'd like to make. Then tack on a surcharge for your gas, utilities, wear & tear on your pans and oven. You'll find after all this is added up that the $2-$3/serving price is much closer to being accurate.
Lots of factors involved in pricing......
Remember that smaller cakes have higher overhead, which is why I won't do anything smaller than a 11x15. You're still running the oven for 30-40 minutes, no matter if you are making a cake that serves 10 or a cake that serves 50. Same expense.....different income.
I explain it to my brides with catering examples: The tablecloth costs me $25 to rent it, no matter if I have food for 50 or food for 100 sitting on top of it. It takes the same amount of gas in the van to deliver a catering for 50 as it does to deliver a catering for 100. I still have to use the same labor to unload and set up 4 chafers, no matter if I'm putting food for 50 or food for 100 in the chafers. Same expense....different income.
That's why I don't believe in the "times 3" theory either. You'll lose your patooty on small orders and wont' get your total worth on big orders.
The 'build a cake' might be a good idea as long as you dont' turn it into a career for the customer. Bear in mind that cake civilians may have no idea the difference between Royal Icing and Fondant decors. They will be confused and a little startled that you will actually CHARGE them to write "Happy Birthday" on a cake. If I look at a long list of options that I don't understand, I'm going to throw up my hands and ask 'Just tell me how much the dang cake is!" They may even just give up and go to the place that makes it easier.
I offier that suggestion because I've seen a price list that made me do just that. I wasn't halfway thru when I thought 'oh forget this! i just want to know how much the cake is!"
Time is the biggest element overlooked when setting pricing. THink of it this way: If you had to pay an employee, who would be on the clock thru the entire supply-buying, baking and decorating time, how much would you be putting out in payroll? Your time is at least as valuable as any employee.
I use my spreadsheet I made to do pricing. It really helps me to know what my costs and profits are. But regardless of what everything adds up to, I am eyeing that price per serving and how much I make per hour. I want the price per serving to be reasonable, but I also want it to be worth my time. You can download my pricing matrix here in the Cake Decorating Business forum. The latest version is version R so scroll down through the discussion thread to get the latest version.
God Bless
Alice
I have to admit, pricing is my worst, least favorite thing about doing cakes!! I have prices set for different sizes, that way if someone asks me how much for a 9" round, double layer, I can tell them. I don't charge "per serving" for party cakes. But I do for wedding cakes. I charge $1.25 per serving for buttercream, $1.75 for fondant. But, for as many times as I have been told, "you need to charge more for that," (even by the customer!), I always feel guilty asking for more. Maybe once I have been doing this a while longer it will be easier for me. Right now I am just working out of my home kitchen. Hope this helps!!
Brenda
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