Really guys, i just started my cake business from home and some people say im really cheap and others well think are maybe stingy lol..... I do my 9 in 2 layer cake tres leches for $25, and if custom $35 and with fondant than $40-45....i have a cake order for september and it will be a 3-4 tier cake 12in, 10 in, 7 in and 4 in 3 layers each, fondant and bows, with stamps, tiara and rhinestonnes, thinking $200? and 2 flavors and 2 fillings....

that's not even $2 a serving

molten lava cakes at arby's are $2.17 each here

i think $200 is seriously under priced a flat out joke for a 4-tier fondant cake

to get a dessert at a fast food restaurant for 120 it would be $260

come on

AYeah, bare minimum would be $420, and that is is Podunk KY. I got 6 small milk shakes (10-12oz) for the family at Burger King the other day and it cost $12.66. ($1.99 plus 6% tax) So, you're charging less than a tiny-a$$ little milk shake, too.

I don't mean to sound unfriendly

and i sincerely welcome you to the board but i'm gobsmacked by the thought of sucha low price

stunned

did you get a chance to read any of this thread?

here's another one for yah

http://cakecentral.com/t/753906/price-the-cake

No no no. $200 is waaay too low for that amount of servings. Red lobster charges $6.25 for ONE slice of chocolate cake. Not decorated, not custom, not made to order. If you took that many people to red lobster and ordered cake, you'd be paying $750 for some half frozen cake. Do not set your prices based on what people can afford---that's not your problem. Set your prices based on what you think your time is worth. If you think your time is only worth a few bucks an hour, you'd be better off working at McDonald's. IF that's all your time is worth ;) You don't see Bentley lowering their prices just because everybody can't afford to drive one. Nope. If they can't afford it, they are just going to have to go someplace that is more within their budget. That may sound snooty, but people have to realize cake decorating is like taking your cake to a mechanic. You don't just pay the mechanic for parts (cake ingredients). You also have to pay for time, labor and expertise!

I also have just started my business, thank God people are recommending me and asking to make cakes for them, but I have the same problem.... I don't know how much to charge I don't want to sound arrogant and charge a lot because I'm just starting the business, but at the same time I'm doing it the best I can, and I'm taking away time from my family to do them.

Can any of you recommend a price chart per serving I can guide from??

Thank you!

So glad I read some of this thread, I to have been on that up and down roller coaster of pricing. I get people all the time that want a custom cake for the price of a grocery store's cake. I charge per servings, 3.50 per serving for basic fondant cake, 4.50 - 5.50+ per serving for fondant cakes with more elaborate decorations, my husband says I'm way to cheap and trust me I get that "I'll have to get back to you"often and why does everyone think you can just whip out a custom cake in a day anywho.... I have visited bakeries just to see what they are charging and ones that just sell cupcakes and the average price was 3.00 for a cupcake and this got me thinking about what I was charging. If a cupcake bakery can charge 3.00 for just being simply baked, iced and really no or hardly any decorations per cupcake why can't I charge 3.50 per serving for a basic fondant cake. I've seen wedding cake prices starting at 5.00 - 10.00 per serving. People don't understand that there is a lot that goes into making custom cakes you just don't bake a cake slap a mass produced plastic figure on it and call it a custom cake at least in my mind you don't. I think as cake decorators we should find value in our time, work and designs and charge accordingly.

AThere's nothing wrong with selling a product you wouldn't be able (or want) to buy yourself, as long as you have a target market identified and familiarize yourself with how that market thinks.

When selling cakes, think like a businessman and not a beggar.

AI made some price adjustments at the beginning of the year. I have had people enquire and not order but I am ok with it. Those who are ok with the prices still order. I know someone who charges way more than me but is fully booked for weddings for 2013. She is good and those who have tasted her cakes say they are yummy. She has been doing it longer than I have. If I get less birthday cake orders, I will use my time in building my wedding cake portfolio. There are people who want good things and are willing to pay. I have to work hard to reach them.

AI made some price adjustments at the beginning of the year. I have had people enquire and not order but I am ok with it. Those who are ok with the prices still order. I know someone who charges way more than me but is fully booked for weddings for 2013. She is good and those who have tasted her cakes say they are yummy. She has been doing it longer than I have. If I get less birthday cake orders, I will use my time in building my wedding cake portfolio. There are people who want good things and are willing to pay. I have to work hard to reach them.

AIf it isn't bad enough that total strangers don't appreciate or understand how much work we put in, you would think "family" would! My husbands brother recently got married at the JP on the "romantic" 12/12/12 and I had made a small tiered wedding cake as a gift. Well, his wife's best friend saw their cake and a few weeks later wanted to know if I'd make her wedding cake and the groom's cake ( which she wanted in the shape of a spittoon!). I agreed and told her I would get back with her about the price and design because she stated she wasn't picky and really only cared about the groom's cake and it needed to feed 60 ppl.

Fast forward a couple weeks and my "sis"-in law sends me a picture of what her friend wants and how much will I charge her because she might get it for her as a gift and she kept stressing that it was ONLY going to be two tiers and ONLY now, 50 ppl. I messaged her back and said it was ONLY going to be $300 for both cakes! She replied with well I was thinking of POSSIBLY buying it as a gift she can get the groom's cake and wanted to know the separate prices which was $180 for the wedding cake and I never heard anything back from her. I know it's a long story but I truly feel that she thought because she was my new "sis" that she could contact me and try to get a good price for her friend! Sorry honey but I am no fool and we're not that cool I just met you 3 months ago.

I know this is probably going to offend several, if not many, people but I just don't understand the problems with pricing.  And these threads pop up every single day. How can you even contemplate starting a business without knowing ahead of time what you're going to charge for your product?  Does a grocery store or hardware store open without all prices firmly in place and even marked on the shelves?  Does a car dealership open without stickers on every window?

How can you even hope to have a profitable business when you have no idea what it's going to cost you to produce your cakes, cupcakes, cookies, etc., and how many you have to sell to reach your break even point?  Are you even planning on having a profitable business? 

There's more to it than "everybody loves my cakes and so many people are telling me I should start my own business".  If you don't take care of the business side of it, you're not going to have a business for long.

I have to agree, I am slowly working on putting together plans to open my own business and while it's a lot of work, I want to make sure it's right from the start. Sure, I have people asking me left right and center to make cakes for them, but I'm not going to take the risk of winging it and having it go wrong! 

AAll of these stories makes me feel that this business is not worth the aggravation. I understand that this thread is everyone getting there frustration out of there system. Believe me i have too many to tell. I get undercutted all the time. But I just can't see a solution to this problem. If there is no way to truly educate millions of customers then they will never understand. The tv shows have helped and have hurt business at the same time. People are more interested in custom cakes, but want it done for pennies.

To many, getting a custom cake is a luxury, a luxury that they think they can get on the cheap. There has to be a way that we can educate people what goes into making a custom edible work of art. And if they cannot be educated than this stress of going into this business just is not worth it.

I stick to my prices and if the customer dosent have the money to afford me, I give them the phone number to rosebud cakes in beverly hills, or hansens in L.A. They are the most famous and most expensive cake studio's in los angeles.

A

It's much easier to target a different market segment (e.g. people who are willing to pay for quality) than try to convince someone who is looking for a cheap cake to increase their budget. Any decently-sized metro area should have enough people with larger budgets to create a healthy market for quality cakes, but you may need to do some research to find out where these people are.

If you have competitive advantages, list your starting prices prominently, and target the right market you will not have the problem of customers trying to bargain you down. And if someone does try to negotiate, you will be getting enough other business so you can tell them to take it or leave it.

I try not to get too wound up. If they can't afford it, they can visit Wal-Mart. I picked up a little cake flyer at Wal-Mart. The servings are based on a 1" x 1" x 4" slice. My servings are larger. I decided to do a little write up on my facebook page and my website blog page that gives a little "peek" into what is involved in custom cake design. It by no means covers all that is involved, but when customers read it, they should get a whole new appreciation for what we go through to make their cake.

Here it is:

Ever wonder why custom cakes cost so much more than cakes from the grocery store? I'll try to compare, but honestly, there is not much to compare.

The grocery store usually has X number of cakes to choose from. They have lots of layers mass-baked, for you and a number of other people. That fluffy white icing comes in a lovely white plastic 5-gallon bucket, and the raspberry filling was squeezed out of a see-through plastic sleeve that was on the shelf with all the other kinds of fillings. They purchase in bulk through the store chain, so the ingredients cost very little. The cake bases, cardboard circles, etc. are there, as there are only so many sizes of cakes offered. Customizing? That may vary some from one store to another. Production is key. Get it done fast. They will probably sell it to you at a price that barely breaks even, knowing that when you pick up your cake, you will probably purchase all the chips, soda, burgers, etc. that you need for the party.

Now lets go custom: I'll be asking you lots of questions...
How many people are you serving? Is this the only dessert? Do you need larger servings, or "typical" wedding-sized servings? Do you have an idea in mind? You want a 6-tier cake shaped like a kangaroo? Time to sketch the cake plans, to make sure it feeds everyone, and will stand upright. A few hours of planning, drawing up the contract, meeting with the customer, emailing...

Vanilla-Almond Sour Cream cake with raspberry filling? I'll be going to the grocery store and paying RETAIL for red raspberries, lemons, etc.. After all, raspberry filling should be made with raspberries, right? Chances are the ingredients will be purchased from 2 or 3 different stores. I just spent the afternoon shopping for your cake ingredients. Now, off to the lumber/plumbing store...

The base to hold the cake: Hmmmm... It needs to be very strong. I make a trip to the lumber store for a sheet of 1/2" plywood, nuts, bolts, flat washers, and plumbing supplies. Then I'll have to figure out the size and shape needed. Map it out, saw the plywood, sand the edges, make sure it is clean, and cover it with foil or wax paper. Then, it may also be covered in fondant in a color to match the cake.

That tall kangaroo won't stand on its own. There are 5 more plywood and/or cardboard plates to be cut, sanded, drilled, covered in foil, and make exact so that the kangaroo can be carved to actually look like a kangaroo. A center pipe will have to go from bottom to top, to keep this thing straight. The center hole in the cake will not actually be in the center of each of these boards. One long pipe will attach to the bottom board, and go clear to the top of the cake. Each plywood "plate" needs 4 to 6 holes drilled in it to attach PVC end caps underneath. Yup. Must drill a hole in each end cap, too, so that they can be attached with the right length bolts, flat washers, and nuts. As the cake is assembled, each iced tier is measured for height, and then pvc pipe is cut to exact lengths, put into the end caps, and lowered into the tier below. The weight of the cake has to be held by pipes and dowels, or it would crush the layers under it.

I'm going to need fondant... that will take about an hour and a half to make.
I'll need gum paste... there's another hour.
I'll need modeling chocolate... another hour.
All of these things will need to be tinted different colors and kneeded by hand. This is still a couple days before the cake is due.

2 days before the cake due date... Time to start baking. 6 tiers... a minimum of 12 cakes in varying sizes. The legs and head will probably need to be made of rice krispies treats... need a couple batches of those made. Some heavy wire will be needed to go through the front legs. The rice krispies treats are molded around the wire and pvc pipes here and there and then carved with a knife, made smooth, covered in butter cream, and then covered in fondant/ gum paste/ modeling chocolate, and decorated.

We have not even baked the cakes yet! The filling must be cooked, too. HOURS of baking, making multiple batches of butter cream, icing, stacking, carving, icing the outside, wrapping in fondant and modeling chocolate, sculpting parts, painting with food coloring and airbrushing...

This cake is way too heavy, so it must be made in 3 parts and assembled at the venue. Everything that will be needed must go along in the Jeep. There must be a way to pack that cake in the Jeep for safe travel. It can not slip or fall over. Some dog better NOT run out in front of me.

Time to travel. Must get there 2 1/2 hours before the party to set it up. There goes another half a day. Don't worry, the other half of this day is waiting... the kitchen has to be cleaned. Your 3-D kangaroo probably took at least 35 to 40 hours, and a minimum of $145.00 in ingredients.

This was your little peek into the world of extreme cake design. Now you understand why they cost more than $60.00. :)

AHere's a link another member shared in another forum in reference to pricing your cakes. She also stated you could copy and paste it and or modify it accordingly. I think it's a good explanation of cake pricing. https://m.facebook.com/note.php?note_id=492430020803655

That is great!

Cake Boss wedding cakes I was told START at $1400.  Not sure if that is true. But just goes to show you that people have no idea what cake costs to make. I wish the cake shows would talk about prices too! Just to educate people.   If people want to pay $1/serving then they need to go to the grocery store or wholesale store where everything comes out of a box or bucket or is spray painted.  The people who are deciding against spending the money on custom cakes are those who are use to buying grocery store cakes or making their own rather than going to a bakery.  To them it is a lot of money.  They are not realizing that we are not just charging them for the cost to make the cake but also for our time. We have to pay ourselves too!!!  And at the end of the day you have to decide what you want to make. I shoot for $20/hour per cake (that's not even including materials so my income/profit is much less).  So I try to determine time to bake, time to make decorations, time to make icings/filings, assembling etc. And I find I always underestimate how long each cake will take me. I never remember to include cake cooling times, clean up, coloring icing and fondant colors. Ugh! . Factor in ACTUAL time on a cake and the cost of the extra materials I usually forget (cake boards/drums ($$), boxes, icing bags, etc, all stuff I forget to account for) it ends up being much more than that!  I remind myself that I paid $60 for an 8" baptism cake for my son's baptism. All it had was a buttercream cross on the top with a God Bless on it! 

What is the Cake Boss price guide you guys are talking about?