I Have An Overhelming Urge To Undercharge....
Decorating By Mommy_Cakes Updated 19 Apr 2009 , 2:41pm by LP4702
It is very hard, because you don't want to feel like you are "overcharging" friends and family, but as others have said, you do not want to set the precedent of being "the cheap cake lady" who makes awesome cakes for less than the grocery store. I can also understand the feeling of "I'm no pro, so I can't charge like one" or "I'm not a real business so I can't charge that much." That being said, I don't do this as a business (yet!) but one day when I hope to, I want everyone to know that while I may be able to offer a F&F discount, that's exactly what it is, and I will be charging more to the "general public."
And thanks mommyle for that spreadsheet - I've seen Alice's Cake Matrix too (which I've yet to sit down and work through out of curiosity) but yours is a little simpler (in a good way!!!)
Good luck!!
No offense to the pros., but if they didn't get it from me they would go to that specific grocery store. I've tried different ways for writting it up to justify it to myself...and I just can't.
I don't want the rep. of being easy, and that's why I wanted to right it up so they could see that it was just a disc. for an office function. I especially can't write it up now that I've tried with my price coming in under the grocery stores with there being 38 more servings.....hmmmm.
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
I totally get you. If you felt you should charge a bit more you could charge the same amount as the grocery only it would be fresh baked, fresh icing, etc. And to avoid the "office wimp" title you could just make it known you are doing the cake at a special price since it's for work, etc. You could even post a price list on a bulletin board or something once you decide what you'd feel comfortable charging. I didnt charge as much when I first started as I do now so dont feel you have to stick with your first pricing guide for as long as you decorate cakes. Hope this helps.
Here is my spreadsheet for pricing. Now, I haven't updated for a while, so prices might be out, but then the pricing in Canada seems to be higher than in the States, so at this point it might be a wash.
This will give you the exact COST of making a cake. No extra for time and effort.
if you have any questions, please feel free to PM me.
This is a great spreadsheet, but do you give this to your customers? With everything spelled out like that?
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
Uhhhh...Why??
Because we all bring something to the luncheons, I most likely would bring something i baked. but I guess it doesn't have to be a cake.
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
Uhhhh...Why??
Because we all bring something to the luncheons, I most likely would bring something i baked. but I guess it doesn't have to be a cake.
May I suggest that you bring a bag of chips? Maybe a generic brand from the dollar store, slightly stale? 
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
Uhhhh...Why??
Because we all bring something to the luncheons, I most likely would bring something i baked. but I guess it doesn't have to be a cake.
It's funny how we get pigeon-holed into baking something...as if we are unable to whip up a dip or yummy side salad...I now take advantage and when I'm asked to bring something somewhere, I usually opt for an app! (unless I'm asked specifically for something special for a friend...) Sometimes I just need a change of pace...
And as pp's were getting at, it makes your baked yummies more appreciated next time!! Food for thought...(haha?!)
I would totally be bringing some bean dip... salsa and chips... cocktail weenies??
You don't have to bring a baked good, and I wouldn't. You need to start weaning them from your generosity with the sweets. Tell them it's you (late) new year's rez to start making your contributions healthy ones... bring some wheat grass cake... 
I mean it's organic right??
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
Uhhhh...Why??
Because we all bring something to the luncheons, I most likely would bring something i baked. but I guess it doesn't have to be a cake.
May I suggest that you bring a bag of chips? Maybe a generic brand from the dollar store, slightly stale?
Eat half the bag before you get there.
here's the kicker, they're gonna end up with my cake there anyways, regarless if they pay or not, it's just the size that will be different.
Uhhhh...Why??
Because we all bring something to the luncheons, I most likely would bring something i baked. but I guess it doesn't have to be a cake.
It's funny how we get pigeon-holed into baking something...as if we are unable to whip up a dip or yummy side salad...I now take advantage and when I'm asked to bring something somewhere, I usually opt for an app! (unless I'm asked specifically for something special for a friend...) Sometimes I just need a change of pace...
And as pp's were getting at, it makes your baked yummies more appreciated next time!! Food for thought...(haha?!)
You know I should do that...I'll have to come up with something else, maybe I'll even volunteer to bring the paper plates 
ooooh... even better!! Non-food item... see... you're getting it already!
You know I should do that...I'll have to come up with something else, maybe I'll even volunteer to bring the paper plates
But then what do you ask the people who can't cook to bring? Oh wait, there's still pop, ice, and chips.
In the fall I started making cakes for friends. I called the grocery stores and got prices for some standard cakes. Then I called local bakeries and got their prices... My first couple of cakes I priced exactly in the middle of the two. NEVER undercut a grocery store - you can't make any money that way. EVER!
It's only been a few months, and I still only bake for friends, but my prices have gone up. My prices are at or just above where the local bakeries are. But my friends know the quality of my cakes, and the time and attention put into their cake design - I always draw up several sketches and let them choose and tweak the final design.
Being so totally new to this, topics such as this are invaluable....I have truly enjoyed (and learned quite a lot) from reading what all of you have to say about pricing. I think for us (my daughter & I) we've been concerned with overpricing in fear of losing a customer. But, the last thing we want is to undercut anyone or be known as the 'cheap cake' company!!
I really want to thank you, mommyle for your spreadsheet. I've downloaded it and it looks awesome!!!!!
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