I have just started baking cakes for friends and family. I am looking into making it a side business. How do I figure out how much to charge for cakes? Help!
First figure out how much it cost you to make one of your cakes then call around to see what the going price per slice is. Check other bakeries not the grocery stores. Then price accordingly
Thanks for the info. I wouldn't want to end up giving them away at a steal.
I agree...figure out how much it costs to make the cake. Also, you may want to find a serving chart like Wilton's, then come up with a "price per serving" amount, which will make sure you cover the cost to make a cake and your profit.
If you go to Wilton's site...type in "batter amounts" in the search box to find the serving chart.
First thing you do is take a safe serv class so you won't poison someone. Then you contact your local city gov to see if you can legally sell baked goods. Hmm then off to the HD, AG to see if they will allow you. Then you learn how to cost out a recipe. Then do market research to even see if you have a saleable product that the public desires. Hmmm toss in a demographic study to see if that said public can afford your pricing. I won't go into the physc study.
See it's easy to bake, and say your going to sell a cake.
Here is a cake matrix that I got on this site: Alice's Matrix, it's in the business section here on CC. But read the instructions first and update any cost change in your ingredients. I made a 150.00 mistake by not updating the chart to reflect today's rising costs. But it gives me a starting point:
Mike's got the right idea. To bake for the public and accept $ for your work,you need to be licensed. I'll throw in the need to check zoning and subdivision covenants to make sure you can have a business at home.
Thank you so much for the info. It helps alot.
I live outside of a large city (Charlotte NC). The price I charge is 2.25 per slice, I charge more if I make roses from paste, bows, etc. If I lived in Charlotte the price would be up to 5.00 per slice. If you live in New York or any large city the price is always more.
Hope this helps.