Hello everyone! I could really use some advice if you wouldn't mind. I bought my first cake decorating tip set in April 2009. Since then, I've been baking and decorating up a storm. Thanks to everyone here at CC, I've learned so much! What I need advice on is this: People are starting to want to buy cakes from me (which is really good), but I'm not at all sure of how to price them. I've read on here that some people get as much as $5.00 to $7.00 per serving. That would be wonderful, but I don't feel like I can charge that much since I've only been doing this for a few months. Actually, I just finished my first "paid" cake today. It is the Tinkerbell cake in my photos. I priced it for $30.00 (because it was for an aunt who is always doing favors for me), but I told her that if anyone asks, the regular price would be about $50.00 (based on my estimated price of $1.25 per serving for buttercream and extra for cut-outs, painting, etc.). I'd just like some opinions as to whether you think this a fair price or not for a beginner.

That cake is amazing!! You should be very proud .
I would price that cake around 60-75 dollars,because of the details of the face ,fondant,etc.
Great Job

The Tinkerbell is great. You did a fantastic job and will only get better. What helped me determine my prices is I compared myself with others around me. What are they charging? What would I need to charge to make a profit? You need to sit down and determine what sizes you will offer, how many servings are in each size, how much do the ingredients and supplies cost (boxes, boards, support for stacked cakes, YOUR TIME!). You don't want to short change yourself.

Good luck!

You did an outstanding job on the cake! Tinkerbell looks so awesome!

Wow! Tinkerbell looks great!

Wow! Fantastic!! I don't think that you should charge by how long you've been at it, charge at where your skill level is. That looks amazing!!

Hi Shadowcat,

I strongly recommend you download and try using my Home and Hobby Matrix. You will need to have Microsoft Excel 97 or newer. This will help you price your cakes accordingly. $1.25 is very low for someone of your level. I recommend looking to see what your costs come to and paying yourself at least $9-10 per hour for your cakes ontop of cost. That should come out to more like $2.50 per serving. Hope this helps!

The price is based on your work, not on how long you have been doing it.

Wow! Tink looks awesome!

I just wanted to thank you all for your encouragement and kind words. I really do appreciate you taking time to offer your advice. This website is priceless!!! Cake Central has the friendliest members of any website I know.

And congratulations on getting licensed and legal so quickly. 'Cause you know you have to do that to sell cakes, right?

Funny way to put that leahs, cause it's true!!

Yeah, I'm working on finding my "softer side."

Thanks leahs for using your "softer side" lol. I am not legal yet, but I'm working on it. Trying to draw up my business plan and all that. I'm also in the house hunting process to try to find one that already has two kitchens in it (ie a duplex) as it is required in my state to have a separate kitchen. I've been reading these forums like crazy to get as much info as I can on the business of baking. For me, I just think it's better all around for both myself and the customer, to be legal. Boy, this stuff takes time though, but well worth it in the end I'm sure.

A duples is a great idea!! Two kitchens, a restroom, extra rooms for storage of supplies! Wow! That makes me want to look into opening my own bakery from a duplex too! I live in FL and you have to have a separate area here too, so what a great idea you have! Thanks and good luck to you!

Thanks kandu001. I just thought that it would be less expensive to purchase a property that already has an extra kitchen. Like you said, you'd have the separte kitchen, a restroom and plenty of storage areas too. It would also mean you'd have a separate entrance. I guess you'd have to watch out for zoning issues though. Some areas are not zoned "commercial".

Good point. It's definitely worth looking into though!!

Thank you very much for the pricing matrix loriana, but I don't have excel installed on my pc. I could have really used that too.