Hi everyone,
I remember recently seing a discussion on the boards in regards to ingredients only pricing, and someone, I don't rember who, said that she provides an invoice that includes the total price and reflects a discount, so the customers know what the cake actually cost. And now I cannot find that thread. So, whoever does it, can you please give me more direction on this. Do you break down the invoice into ingredients, labor, supplies, and then waive labor and supplies? Or do you do it differently?
I do this as a hobby for now for family and friends and generally ask for ingredient reimbursement. Some pay, some don't, some pay more than I ask, but of course never what it probably costs in the bakery. Anyways, it all evens out. My best friend asked me last week to do a cake for her coworker's birthday and wanted something with two tiers, so they can eat one tier at work and then coworker can take second tier with her home. It probably going to be the size of my latest baby shower cake, 8 and 6. Anywho, not a biggie, anything for my friend, but yesterday she told me that she would like me to bring the invoice with me when I deliver the cake, so her boss (doctor's office) can pay it. I did not realize that I will be making a cake for an office, just for a friend. I surely don't want to give an invoice for $25.00 to the doc's office, so everyone there assumes that they can call and request two tiered cake for $25.00. When I'm ready to sell cakes, they probably be two-three times more than that, so I really don't want a word to get out with strangers how cheap the cakes are. This is just a hobbie I enjoy for now, plus I still have a ways to go to get my cakes just right. So any advise? How can I word the invoice to make it clear that $25.00 is not a cost of the cake?
Thanks in advance, P

Valid concern, and by the sounds of it a biggie. No way do you want the entire office to see a $25 invoice sitting next to your gorgeous cake!!!

Though I don't have a link to the thread you mentioned, I would do exactly as you said. Draw up an invoice which tallys up what the cake WOULD have cost: include labor, delivery, etc., then list a discount for those things she isn't paying for. That way, the boss knows how much it'll be next time (I generally only do one cake at cost or as a 'donation'-- after that they pay) and her coworkers won't think that you work for peanuts.

Why are you doing it for cost if it's for the office and not for the friend? I'm sure the Dr.'s office can afford to pay for a cake and I doubt they would give you an office visit for cost.

Just put the total cost, then a discount and the reason for it (friend, etc.) along with the total due. You don't need to start writing out the cost of everything. If you do that, then people will say "It only cost $10 in ingredients? Then why is she charging us $60?" Etc etc.

A bigger question is why your friend expects you to give her a big discount if her office is paying for something, not her. Next time I'd make sure the cost of the cake was coming out of her pocket, or what's the point of doing her a favor? If it's a cake for her children or something that's one thing, but if you're doing it for a coworker who you don't even know, why are you discounting ?

I know you said it's only a hobby at this point, but if you're selling food you'd better start thinking about this like a business, or you're just laying a dangerous path of people expecting continuous discounts for yourself.

I don't even intend to sound mean, but I can't imagine giving anyone a breakout of my expenses, electricty, labor, etc. It seems so inappropriate and frankly, none of their business. My prices are based on the bakeries in my area's prices. Period. I am a hobby baker, but also work at a bakery. I can't imagine a customer coming into the bakery asking for a breakout of expenses. Your $25 should be noted as "expenses and time"...don't elaborate. My opinion.

I think what she meant by showing what the cake cost was she showed what she would normally charge (cost to the customer) for the cake, then the amount of the discount given, not that she showed them what it cost her to make it.

Ok, ok, don't get upset with me. The reason I posted is that I need a suggestions on how to put it on the invoice. I don't know how to word it, that's why I'm asking for help. So, what I understand you say is that I do not need to put any kind of break down, just the total cost of the cake, say $80.00 and then "friend discount" for grand total of $25.00. Correct? Is $80.00 sound okay, too much? It's going to be a luau cake, 8 and 6, buttercream with fondant accents, gumpaste flowers, and chocolate sea shells. It probably be similar in time involved as my latest baby shower cake http://cakecentral.com/modules.php?name=gallery&file=displayimage&pid=1399728
And to address some of your questions:

I'm sure they can pay for the cake, but so far I'm doing all of my cakes at cost and this is for a friend. This is a new job for her and she's been having some hard time fitting in with the staff-they all been working together for a long time, and she is a newbie. The doctor herself, we both know very well and the doc hired her from outsided the office instead of promoting from within. I think there are some grudges there. As for the doc, she would actually do a free visit for me if I ever needed it, she is just that kind of person. The invoice is for accounting desk, that's why I'm worried.
Thanks again

Yes, just put the total $80, then "friend discount" with her name on it, and the $25 balance due. You don't need to get more specific than that.

$80 is a very cheap price for that sort of cake. If you were doing it to sell to someone, it should be more and you are adding a lot of extras. You are only going to charge $25? I know you are doing it for a friend. I think you could list the size and tiers of the cake and the extras, flowers, seashells etc. with a total cost of $xx.00 and then maybe do a % discount that would take it down to the $25 or close to that amount. If anyone wanted to know the actual cost of the cake it should be more than the $80.

I think it may have been PinkZiab who breaks down her invoice in all of those ways. You might PM her and ask.

Here's my idea............I'd type out an official invoice, full price and print it out, then cross out the total in pen and hand write "friend - cost $25-00" and initial it.

Then it is clear that according to your "usual invoicing/charge system" (not that they need to know if you have one or not hee hee) you would charge $80-00 but you've adjusted it for your friend. Anyone else seing the invoice would not expect to be charged the adjusted "friend" cost, but the printed total.

Thanks you all, that's what I do! Does $80.00 sound like a right enough ammount for the cake like that?
Thanks P