First Paying Orders...pricing...

Business By Artsygurl Updated 8 Apr 2008 , 4:55am by deanwithana

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Artsygurl Posted 7 Apr 2008 , 3:32pm
post #1 of 14

Hello everyone! I have been getting orders for my cakes outside of the family lately, so I would like to start charging. I read on a website that I should be comparable to local bakeries. So I called four bakeries to see what their prices were and then I averaged them together to get "my" price. Are these prices too cheap?- $13.00>(9x13), $22.00>(11x15) and $35.00>(Full sheet). I don't want to be too expensive for my area so I figured these prices would work. I live in a very rural area and the average salary isn't that high at all around here. Some input and tips for cake pricing in small areas would be GREATLY appreciated! Thank you all so much!! icon_smile.gif

13 replies
mezzaluna Cake Central Cake Decorator Profile
mezzaluna Posted 7 Apr 2008 , 3:37pm
post #2 of 14

icon_surprised.gif Sounds grossly cheap to me!

How much decoration are we talking about here?

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ccr03 Posted 7 Apr 2008 , 3:44pm
post #3 of 14

WOW! I'd have to agree with mezzaluna on this one!

But how are you price it? Because if you are considering a 12x18 a full sheet, as a client, I'd be better off buying two 9x13.

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Artsygurl Posted 7 Apr 2008 , 3:58pm
post #4 of 14

That's very true about the two 9x13 cakes ccr03. I didn't really notice that. I was just basing these prices on local grocery store bakeries. I decorate with buttercream icing. I don't do fondant. I do more with decorations and detail than a normal grocery store bakery does, but I'm afraid to charge more than them for fear of turning people away because I'm more expensive. I'd like to find a happy medium to charge people without being too unreasonable for my small area. Thanks!

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CakeDiva73 Posted 7 Apr 2008 , 4:13pm
post #5 of 14

OMG, that seems waaaayyyy too cheap. How can you make any money if you are charging $13? Your ingredient cost has to be at least $5 not counting the board or box...

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kelleym Posted 7 Apr 2008 , 4:13pm
post #6 of 14

Don't compare your product to a grocery store cake!!! You need to call a custom bakery and set your prices close to theirs. Your cakes simply cannot be compared to a flash-frozen, mass-produced grocery store cake.

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supermom2_3 Posted 7 Apr 2008 , 4:19pm
post #7 of 14

WOW! That sounds really cheap to me too. Did you call like the bakeries (outside of grocery stores?) I would be curious how much they are charging. People will generally pay more at a "real" bakery, VS a grocery store bakery section. icon_smile.gif
I don't know how you would make a profit with prices so low...

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Cyndi1207 Posted 7 Apr 2008 , 4:25pm
post #8 of 14

You have to charge more than the grocery stores. If people get scared away by the price it's because they're looking for something cheap......price and quality wise. You also buy the ingrediants at retail prices............not like the bakeries where they obviously get wholesale prices..........or should I say frozen cakes at wholesale prices icon_smile.gif

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kelleym Posted 7 Apr 2008 , 4:29pm
post #9 of 14

Home bakers can't compete with grocery stores or warehouse stores (Costco, Sam's) on price. However, we beat them senseless when it comes to quality, taste, workmanship, and customer service. Consider yourself a "cake boutique" and price accordingly. icon_smile.gif More of my thoughts on strategic pricing here. icon_biggrin.gif

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KHalstead Posted 7 Apr 2008 , 4:35pm
post #10 of 14

grocery store does NOT = bakery

call a real bakery!! Or what I did...because there are no bakeries around here...I called all the other people that sells wedding/party cakes and got an idea of what they charged, then figured up my costs (thanks to cake it kelley!) and decided if I could live with it. My cakes are actually a bit more expensive than the other two people that do wedding cakes....but I got one wedding cake so far (tons of party cakes too) and have 4 other wedding cakes in the works for this summer!! People get what they pay for and I don't want to make a cake that I'm going to resent spending time on. I keep raising my prices first I didn't pay myself ANYTHING for labor...and I still don't charge enough for labor , but I'm getting quicker and building a customer base.

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cakelady15 Posted 7 Apr 2008 , 4:37pm
post #11 of 14

Those prices are super cheap. I'm in Ohio and the grocery store here charges $48.99 for a half sheet cake. I think you are going way too low. I agree with the others that you need to charge like a specialty baker and not like the grocery store. My feeling is if they don't want to pay my price for a custom designed cake then they can have a generic roses in the corner and two lines of writing cake from the grocery store. Nobody ever ooh's and aah's over those though. icon_smile.gif

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mezzaluna Posted 7 Apr 2008 , 5:00pm
post #12 of 14

I would rather do one cake for $100 than burn myself out doing 10 cakes for $10 each.

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Cyndi1207 Posted 8 Apr 2008 , 4:37am
post #13 of 14

Mezzaluna-----Well said.

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deanwithana Posted 8 Apr 2008 , 4:55am
post #14 of 14

I do not sell cakes, but was just talking with a few that do in my area!!! What they were saying is that they figure their cost and then triple it!!!! If there are no bakeries in your area, then you might want to use the above as a guide so at least you know that you are getting something for the labor!!!

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