I'm with you love2cook, I only bake for family and friends. I just took an order for a graduation/birthday cake 1/2 sheet, no filling and am getting a donation of $40.00. It won't take me very long (although I think I am really slow). I just enjoy doing cakes.

I completly understand how you feel about pricing your cakes to high. Where I live alot of people are also losing their jobs and not many people can afford to give much for a cake but would still like to try and make a family members birthday special now how are you suppose to charge 2.00 a slice to people like that. I just started selling cakes a few months ago and I have only been charging around .75 a slice thats about all you can get out of a Birthday cake in a small community because if you charge anymore than that people just go to walmart or shop-n-save and buy one. I guess until the economy improves and people are more secure in their jobs us that only makes a very small profit will just have to be satisfied with just doing it because we enjoy it.

I started decorating cakes so that I could do cakes for my boys' birthdays and for family. I've always loved baking and decorating just fell in line. I haven't taken classes and it's only something that I did once in a while. As I've started making more and more, people keep asking how much I'd charge. My family won't let me just make a cake for them as a gift. They slip the money in my pockets or hide it in my coat or in the kids' diaper bag for me to find.

For my cousin's graduation cake (the '08 in my photos), my aunt gave me $120, when I found the money I was floored. I never expected her to pay me that. So how do you handle situations like that if you are just a home/hobby baker? I'm not licensed because I have dogs and I live in an apartment and have nowhere else that I could work from.

I will make cakes for a few close friends and I will ask them to cover for ingredients. Most everyone that I've baked for thinks that I deserve the going rate for cakes, and then I have to explain to them that I can't "legally" accept their payment. Most give me the money anyway and won't take it back. I feel like I'm slapping them in the faces when I'd love to be paid for the work that I've done if they request a specific cake. Some days it isn't even worth it to have a hobby if you feel this much guilt over doing something you enjoy.

Love your cakes by the way. they are beautiful!

I think this is a difficult subject. I too am very timid about pricing. We tend to think in terms of what we'd be willing to pay. You have to let that go. I wouldn't pay these prices either, but like someone said, that's why I learned to do cakes in the first place. It's not going to hurt someone to get a mix and make a birthday cake themselves if they don't want to pay what a decorator charges. In fact-- how nice for the recipient-- the person took the time to do it themselves! If you're not careful you'll find yourself with more business than you can handle, doing it too cheaply and regretting it! Ask anyone on here, even if you don't intend to do cakes for the public, it happens.
If after reading what everyone has to say about this, you still want to charge a modest amount--- the great thing about it is--- it's your choice. If you choose to do it out of the kindness of your heart---- bless you!

For the OP, for me, a great way to settle the question of what to charge was simply to come to terms with the knowledge that it was not legal for me to charge anything in my state unless I had a set-up that complies with regulations. I love making cake, and am blessed to be at the point in my life where I can give them as a gift. If you love making them, and feel uncomfortable charging too much, and can afford to donate them, then release that guilt/burden by simply giving them from your heart --which seems to be the place (compassion) you are coming from based upon your original question.

Blessings as you struggle with your decision.
-W

A lot of food for thought. Last year my kids asked what I wanted for my birthday. I have always home made cakes just because of taste prefrence. Or we do ice cream cakes alot. But I always wanted to be able to decorate them nice. Since my children are teens now and do not require as much attention I asked for them to sign me up for cake decorating classes. My 19 year old daughter decided to do it with me. We attended the Wilton classes at Michaels last July and August. They are finally just offering the third class this month and we signed up for that also. However in the meantime I really took to it and love doing it. It started with a birthday cake for a co-worker now its becoming a business. I have been struggling with the $'s since day 1 and the fact that I should have a license. I find that I enjoy doing it and love to surprise myself. When I do if for $'s is find it to be very stressful I am so afraid they wont like it. As I get better and receive more request I am finding that my cakes are nice and they taste good.

I will now take time to call local bakers to find out pricing in my area. I have already looked into the cost of a license and found as long as I am not making thousands of dollars its not worth it. I make it very clear to people that it is done in my home and that I am not licensed. I will worry about that if I actually start to make a profit.

Thank You, all for your comments/post it is food for thought.

Heck I wouldn't pay $$$$$$$$$ for a watercolor, but if I painted it and someone offered, I sure would take the money!
I wouldn't buy my cakes and cookies, I'm cheap. I'll make them though. Folks are glad to get them.

Ok, so here are my 2 cents (and they are Canadian so apparently not worth as much as American)
First of all licensed/unlicensed bakers, home bakers or not has been a hot topic here. Can we just leave it out for the time being??
Someone put it very well previously (possibly in another thread): what would you want you daughter to be paid if it was her making the cake?
I enjoy my job, but I will not work here for free. I need to watch out for my family.
It comes down to basic needs and wants. First, you do not NEED a birthday cake, but I know I sure as h*ll WANT one. People don't NEED beautiful cakes, they WANT them, and given that they are a luxury item and they should pay as such. Let's say I need a new pair of jeans. I don't NEED apair of Juicy Couture jeans, but I want them. Also, the little mom and pop store down the street won't discount them more than Macy's. Don't undercut yourself because people can't afford it. If you can't afford it, and you dont NEED it, don't buy it.

I charge $100 for an 8" cake torted and fully decorated with custom board and I have NO qualms doing so. If someone wants a custom cake they will pay for it. If they just want a sheet cake go to walmart. I'm not in the business of shoting myself in the foot for the sake of someone's wallet. Cake is a luxury item.

$20 is a lot for a cake when you can get one at Sam's for $16 or $17.


NO NO NO NO it is not! I can't belive a custom cake creator could even say something so, pardon me, but flat out full of sh**! Those cakes are not even in the same level as custom cakes...please! Sheesh....this is getting so old.

You are worth more. If you stand steady to that, and can show people why your cake costs more, and justifiably so, they will begin to appreciate the hardwork, quality ingredients (if you scratch) and decorating skills that cannot ever be matched by a mass producing grocery store baker! Arrgh!!

And about the whole "people are out of work and aren't spending on luxury items anymore"...I call BS on that too. There are plenty of thos situations where I am. And plenty of people who are still living comfortably, and they keep ordering the cakes. And when things turn around, if you have slashed your prices so shorribly and people get used to it....good luck bringing them back up, it's gonna be tough. You've now set a precedence with people saying cake is cake, and I'm going to practically give it away....

my friend did me a great favor a couple of weeks ago when i couldn't get out from under the cake i was doing, so she ran some errands for me...i took her out yesterday to a local italian restaurant chain, "buca di beppo"...she doesn't know i'm paying, so she orders her dinner, and then a "chocolate versuvius" dessert (chocolate brownie/cake with two scoops of ice cream and caramel sauce)...i insist on paying for everything, look over the bill, and the dessert alone was $11.99!

yeah...i'd say your indecison over charging $2.00 a slice is a bit insane.

I know that so-o-o much depends on your area. A friend asked me once what I would charge her for a wedding cake that, as described, would be pretty simple. I told her I'd do it for $1.75/slice (it was a couple years ago). She was ecstatic, because everyone she had contacted wanted $2/slice (these were not the grocery stores, but actual bakeries). So do I think the OP is off her rocker for only charging $2...no. It all depends on the area. If the typical price in her area was $5, she'd be a fool to underprice herself like that. But I know there are many areas where $2 is pretty much the average rate.

My neighbor is the executive chef at a very fancy local restuant and I was just mentioning to him yesterday that I've noticed that even with our economy being in the toilet, people still manage to eat out. (maybe it has something to do with lifting spirits/escapism?)

Businesses around here are closing left and right, but he was saying that resturants don't seem to be as effected... people are spending less, but eating out just as much.

edited to add~ if people want the cake bad enough, they will pay the price. Otherwise, there wouldn't be as many successful decorators as there are.

I wouldn't work for less then minimum wage and I wouldn't work for minimum wage. I have a family and goals /dreams to live and if you can't afford it or thinks it's simply too much then go somewhere else! If the order is for close family etc I consider it a gift!

To the OP - you have to understand that eventhough you want to offer McDonald's prices for your product are you producing at that level to truly make any money? If making money isn't your goal with decorating then please stop selling your cakes (which you are more than likely doing in an unlicensed home kitchen or your permit costs and other expenditures necessary to be considered a legitimate business would certainly up your fees), give them away as gifts. But if you are wanting to make money then by God MAKE IT! Sit down and truly figure out how much it costs you in ingredients, paper goods, utilities, and your time, also if you took classes factor in the cost of that too. It truly isn't about just ingredients. Aren't your talents worth more to you?

This topic never ceases to amaze me..........did I actually read a post that said they charge .75 cents a serving?

My COST per serving is about $1 to $1.25 depending on ingredients ( I bake exclusively from scratch, including fondant).

I know how much I'm paying for a lb of butter, flour, sugar etc.......are you telling me that in other areas of the US they are giving away these ingredients? Are your grocery prices that much lower then mine here in MA?

They would have to be because at .75 cents/serv I'd be losing money.

Have you ladies actually sat down and figured out how much per serving it's costing you?

I think if you're even considering this as a business, whether it's first, second or tenth income doesn't matter, you need to know what your costs are.

You are doing yourself and your family a disservice if you don't. By charging such low prices, you're not only taking money out of your household income, but you're taking valuable time away from your family by spending hrs doing a cake that you're losing money on.

Did you ever think of it that way? I guess that's the difference between a business and a hobby. Which is fine if you're comfortable with that.