How Much Do You Pay Yourself Per Hour[B]?[/b]

Business By nadsquad Updated 2 Feb 2007 , 1:07am by nadsquad

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nadsquad Posted 14 Jan 2007 , 2:26pm
post #1 of 30

Hello,

Just wondering what people charge per hour of work they do. When I calculate how much I should charge for a wedding cake that feeds 100 people, it changes drastically what I will make per hour when I use the method of multiplying cost of ingredients times three versus paying myself $2-$3 per serving.

So how much do you calculate what you pay yourself per hour would come out to?

Thanks

29 replies
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mypastrychef Posted 14 Jan 2007 , 4:50pm
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I like to get $100 or more. THe best I've done to date was a fondant and buttercream wedding cake that I ran out of time that day and had to push the envelope!
It was a 6-8-10-12-14 with pearl dots and fondant diamonds. the cake was already baked but I completed the rest in 2 hours, the cost was $1400. I figure that was about $600 per hour after deducting for ingredients.

I am in charge of how much I make and so are you.
mpc

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indydebi Posted 14 Jan 2007 , 5:13pm
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Had this conversation with my manager (when I still had a full time job). She was asking about my catering/cake biz and "......do you think you'll ever do this full time?" I told her heck yeah!!!!! Because when I figured the money in my pocket vs. the hours I put into it ...... meeting with the bride for samplings, ordering and/or picking up supplies, food prep, cooking, baking decorating, delivering, set-up, serving, tear down, clean up and everything in between, my time was still billable at over $100 per hour.

It was my hubby that caused me to figure that out. He told me "You think because you're doing the wedding and not paying someone else to be there that it's cheaper for you." He pointed out that ".....YOU are the most expensive part of this business! If a bride is getting YOU to work her wedding, she's getting the cream of the crop!" (God luv him! Aint' he sweet for thinking that?) But.......! It helped me release "some" of my control-freakness and delegate some of the work to my amazing crew. 6 hours at a wedding is a value of $600 for me to be there. I can hire 3 people to work 6 hours at a wedding and it will cost me way less than $600. So it turned into a win-win ...... my friends earned some extra money and I'm less stressed! thumbs_up.gif

This was a good thread ...... if you haven't figured the value of your time (and remember, they are not just paying for your cake, they are paying for your time, your creativity, your talent), it is a good exercise to do!

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nadsquad Posted 20 Jan 2007 , 12:47pm
post #4 of 30

Thanks for your responses indydebi and mypastrychef.

Wow, I had no idea that it could go that high! I would say that my skill level is intermediate. I have done a total of 5 wedding cakes so far, and each time improving, but still not quite at that level of speed.


Im trying to attach some pics but having some difficulty.

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nadsquad Posted 20 Jan 2007 , 12:55pm
post #5 of 30

Hello,

managed to get photos of cake attached. They are 2 layer 12", 9", and 6" cake, feeds about 100, covered in buttercream with royal icing roses and drop flowers.

How much do you think you would charge for this cake?
LL
LL

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mypastrychef Posted 20 Jan 2007 , 4:27pm
post #6 of 30

Separated cakes I charge $2.25pp and add on for extra decoration, like it takes longer to make all of the individual flowers that take way more time than swags.
mpc

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nadsquad Posted 20 Jan 2007 , 7:49pm
post #7 of 30

Thanks mypastrychef!

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mypastrychef Posted 20 Jan 2007 , 8:40pm
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Oh Yeah, according to my serving chart that size cake would feed 115.
mpc

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nadsquad Posted 27 Jan 2007 , 8:38pm
post #9 of 30

Can anyone else share what they would charge?

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onceuponacake Posted 27 Jan 2007 , 8:49pm
post #10 of 30

With all the flowers and the separated tiers svg 115 at $2.5 pp = 287.50 round it up to 288.00 even.

That is a lot of flowers. I have a starting point of $2.00 per serving with standard decorations like cornelli lace or basket weave and a few flowers. Anything beyond that the price starts going up.

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nadsquad Posted 27 Jan 2007 , 9:15pm
post #11 of 30

Thanks onceuponacake!

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Ginger08 Posted 27 Jan 2007 , 9:29pm
post #12 of 30

Well you know it really depends on where you live, and what the Brides in the area are used to paying for cakes. For me, that cake serving 115 would cost them $520, we are at $4.50 a serving, which includes the decoration, delivery and free anniversary cake. Again, all where you live too. I wouldnt want to think about how much I actually make an hour though, since we are home based and work pretty much around the clock when ever we like to work on sugar parts and such that need to be made way ahead of time to completely dry and such.

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nadsquad Posted 27 Jan 2007 , 9:37pm
post #13 of 30

Thanks Ginger08!

I am a home baker and I am in SE Michigan.

I don't get orders very often and am kind of afraid I won't ever get any if I charge what it might be worth.

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VACakelady Posted 30 Jan 2007 , 7:32am
post #14 of 30

Hourly rate??? What's that??? For that 3 tier cake, I would charge around $290. I include one separation in my price, but charge for any additional.

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Chef_Stef Posted 30 Jan 2007 , 7:38am
post #15 of 30

I use the matrix and give myself $20-25 an hour to start with, but often fall to $14-16, sometimes $12, any less gets depressing.

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Delicate-Lee Posted 30 Jan 2007 , 10:26am
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icon_surprised.gif Wow This has really opened my eyes! At the moment Im the leading cake decorator and manager of one of the leading cake decorators in my state... at the moment Im making all the wedding cakes and the boss is gettin the credit etc etc... My main aim is to start a business of my own within the next 2 yrs but I was a bit worried about loss of income.. but by the sounds of things I will be better off! I would be making at lease 4 times of what Im getting now...
(Im asking for a pay rise!)

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Chef_Stef Posted 30 Jan 2007 , 5:11pm
post #17 of 30

That's what's nice about working for yourself...

When you want a raise...you raise your prices. Assuming your market can stand it, but I think if most of us are charging less than restaurants do for desserts, our markets can stand it. icon_smile.gif

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parismom Posted 30 Jan 2007 , 5:19pm
post #18 of 30

homecook - I love your end quote! I will remember that forever!

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mypastrychef Posted 30 Jan 2007 , 8:19pm
post #19 of 30
Quote:
Originally Posted by parismom

homecook - I love your end quote! I will remember that forever!


I used on my website too! on my price page. But I changed the amount per serving.
mpc

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Chef_Stef Posted 31 Jan 2007 , 6:47am
post #20 of 30

Thanks you guys...it's so true...

Ya can't even get an ice cream cone at McD's for $2.00 anymore. Even a piece of cake at Denny's will run $4.99 or more...

You go, girls! thumbs_up.gif

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cakenbake Posted 31 Jan 2007 , 7:24am
post #21 of 30

I can't imagine being able to make a wedding cake in 2 hours! What am I doing wrong? An average cake takes me 4 hrs to decorate (smooth ice. borders ect.) That doesn't include the royal icing pieces or fondant/gumpaste stuff. I pretty much say no to everyone that asks if I do birthday cakes ect. I love to make them but they take SO much time. Any suggestions about time? I never know what to price a cake because if I charge by the hour I think it will be to expensive. Do you charge the same per serving price for all occasions or more for weddings?

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Chef_Stef Posted 31 Jan 2007 , 5:22pm
post #22 of 30

I try to stay away from anything but weddings, but my pricing's the same either way.

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imartsy Posted 31 Jan 2007 , 5:32pm
post #23 of 30

WOW! This is amazing! I just don't know if Kentucky will pay those kinds of prices for anything other than a wedding cake! I just do stuff from home at the moment but I know I don't make enough money for all that I do - but I love it and I'm improving my skills - so maybe one day I'll have a bakery and can charge more! B/c it's just family & friends it's hard to charge them a lot sometimes.....I'm still trying to figure out all of my pricing - it seems like it never ends trying to figure that stuff out doesn't it!? There should be an industry-wide guide or something to ethical cake pricing..... hmmm anyone want to volunteer to write that one??? icon_smile.gif I know it varies according to area but there should be some kind of standards - like pricing per flower or by hour of how much time it takes to make each flower on a cake..... or the seperated tier thing..... hmmm I guess I'll keep on wishing about that one.... or maybe write in a suggestion to one of the cake decorating magazines! we'll see....

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mypastrychef Posted 31 Jan 2007 , 11:28pm
post #24 of 30

It is against the law to set a standard for prices.
Anti-trust law
It is OK to tell others how much your price is but as an industry you can not set prices nationally
mpc

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indydebi Posted 1 Feb 2007 , 12:12am
post #25 of 30
Quote:
Originally Posted by mypastrychef

It is against the law to set a standard for prices.
Anti-trust law
It is OK to tell others how much your price is but as an industry you can not set prices nationally
mpc




Absolutely! It's called the Robinson-Patman Act. When I was with a manufacturing company, I wrote the training program for employees and for our 250 distributors and traveled the country training them on it.

Even the MENTION of MAYBE even just talking about it is in violation.

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Sugarbean Posted 1 Feb 2007 , 12:38am
post #26 of 30

I try to pay myself around $15.00/hr for wedding cakes. Birthday etc depends on the cake though. icon_smile.gif

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Jenn123 Posted 1 Feb 2007 , 12:48am
post #27 of 30

I don't see how you can pay yourself by the hour and compare to anyone else. If you charge by the hour.... the inexperienced make the most! I'm fast, but good. I just try to charge reasonable prices for my area (but in the upper range) and buy supplies as low as possible.

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baergarivera Posted 1 Feb 2007 , 12:48am
post #28 of 30

nadsquad Well since you whan to open your own business one day just learnd as much as you can with all the management things and calculate the cost of things that would be for running things and see. also i will tell you to start writting all the things she orders from outside vendors and like that you will know what will be the best alternative for you when you open your own business for know it may suck but just keep thing under the low down until you get good information from all surts of suppliers when you open your own bakery all this information will help you, Best of luck and ps you should always get 100 to 150 hr for all your work depends on what type of cake it is.

BEST OF LUCK
MICHELLE

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mypastrychef Posted 1 Feb 2007 , 1:34am
post #29 of 30

baergarivera

OMG!
I just looked at your photos and saw a picture of my cake ( a christening gown for Noah and Catherine).
Funny how you know your own art?
Hope your cake turned out cute!
mpc

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nadsquad Posted 2 Feb 2007 , 1:07am
post #30 of 30

I see your point, Jenn123. It makes sense that if we compared pricing per hour, the less experienced would take the longest and thus earn the most.

Still, there must be a range . . .

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