Hello I am only just setting out doing cakes and orders are coming in fast! Only problem is I have no idea how much to charge. Most of the time I know I am not charging anywhere near enough.

Help please

You should charge per serving. Then difficulty meaning sugar flowers?, detailed work?, etc.
But also, you need to take into consideration your location and what the going rate is. Also, do you have a licensed bakery or doing it illegally which then you shouldn't be charging at all. (or at least charge enough to pay the fine if you get caught) I'm kidding about the last part.
You do need to sit down and figure out how much time it takes you for a cake. How much is your time worth? How much is someone willing to pay for your time in your area?
Lots of stuff to think about before your comfortable giving out $$ questions!

Thank you, I have the food hygiene certificate I need to have before I can cook/bake for public consumption lol. I will have a look into the per slice price cheers

I just noticed your in Scotland!!! I will now read your posts with a cool accent
Here in the states we have to be officially licensed, insured along with the food hygiene certificates and such. A lot of people don't realize this and this is usually where they figure it out. Most of our states won't allow it at all too!
I would say it's still the same on pricing though. See what everyone else is doing and go from there. Good luck and happy baking!!!

lol I will make sure I say lots of wee scottish words to make the ccent sound cooler then. We are more lax in Scotland I do wedding favours and when I looked into it the cert was all I need a wee cottage business. och I hope it doesnt change!

I hate this question lol because Im always asking it. I did work out my own personal formula today at last. Basically I work out the cost of ingredients + some extra for cooking then I double it thats for a basic iced cake + board and ribbons I charge £7.50 for small figures and £15.00 for large ones. I work on the same principle for wedding cake to but remember to add all the extras. Hope this helps, if not have a look at my website and pinch mine lol

WOW, NatD!!
Just because you took this all wrong doesn't mean everyone else will too.
When I first started making cakes I sold them to friends and others without realizing that it was illegal. This is the exact place I realized what I was doing was wrong and now I'm grateful of that.
I guess the difference between you and me is that I learn from all responses and not take everything personal as an attack on me. There was no devil posts from me!
If your a person that is looking for a place to have your back rubbed all day then this isn't the place. It is what it is!

nope I don't expect anyone to "rub my back" just as I see it she didn't ask anything about licensing....like I also stated it isn't just "YOU" personally...i said I have seen SEVERAL times on here how many decorators put down home based bakers....like i said who's business is it?? and trust me I run my own business besides doing cakes and I know how extremely difficult and how much hard work goes into it....I don't EXPECT anything to be handed to me or anything to be easy...this is my opinion and I am entitled to it....

p.s.

the devil wasn't meant to you directly just the entire subject of licensing, sorry if it came off that way

malene's answer that including licensing was spot on. Licensing (and insurance and classes) are all costs of doing business, just as are flour, eggs, sugar and milk, etc. All your costs of doing business need to be figured into what your retail costs will be.

But if you aren't licensed and are required to be, then that fact also dictates your pricing structure. Because if you are required to be licensed and you choose not to get said license, then you can't legally charge for cakes, so your price per cake would necessarily be $0.

Hello Pinkjacs its me again,
Just in case you missed my little input and the answer to your question amongst the mayhem I will post it again lol
I hate this question lol because Im always asking it. I did work out my own personal formula today at last. Basically I work out the cost of ingredients + some extra for cooking then I double it thats for a basic iced cake + board and ribbons I charge £7.50 for small figures and £15.00 for large ones. I work on the same principle for wedding cake to but remember to add all the extras. Hope this helps, if not have a look at my website and pinch mine lol

Oh my goodness, Melene I took NO offence what so ever!! Thank you for your imput.

Lynndy-lou that was kinda along the lines of how I was thinking, I will have a look at your site thanks very much

Pinkjacs when I first got started doing cakes pricing was the worst part of it all in my opinion. A good way to know what to charge for your cakes is to call around to local bakers in your area, even home bakers as well and ask what it would cost you to get a cake, for say 30 people...I even ask them about the cost of doing fondant vs buttercream that way you can find out what they are charging per serving and whether its for a fondant or buttercream covered cakes. You can even look for home bakers in your local area on the internet and see if they have their prices posted. This info will give you a basis to go off of. I priced mine right around their prices and as I gained experience I raised my prices.

I tried pricing my cakes in the beginning be adding up all my costs and multiplying that number by 3 but it never seemed to be the right costs. Many people use this method however it just did not work for me.

For me I felt that that finding out the prices in my local area and using that as my basis to pricing my cakes per serving was a perfect way to come up with my pricing and it has worked great for me.

I hope that this info makes sense to you, and helps you to find the best pricing for your cakes.....I wish you the best my friend!!

Donna

Thank you that does help, I am always worried people dont think my cakes are worth it.

I add up all my costs, then add on an amount for labour. For eg, a fondant covered 8" sponge with fairly simple decorations starts at £36 - cost of ingredients etc + an amount for overheads (I set this at a standard £2 per cake) + 3 hours labour @£8 per hour. Obviously you set your time rate as what you think is fair for your skill level, area etc.

I'm not sure that the American system of pricing per serving really works in the UK, as people are just not familiar with it. That's just my experience anyway!

Hope this helps!

thank you it helps loads. I need to take bull by horn and make a price list now

Pinkjacs - speak to environmental health again. It's very simple, but you do need to have ur kitchen inspected 28 days before u can legally trade.
As for price, get the basics down - then you can says my price starts at £X, this design will cost more, I will give a quote by X time. (i would start an 8 inch nearer £50+)
xx

oh I think I really underpricing then lol. Mind you I dont have much experience so dont want to go over board!

And thanks I will look into legal stuff again.

experience does come with a price tag - but my price is based on near enough minimum wage, plus *all* (i think!) the costs.
xx