After selling a few cakes to co-workers, I've decided to make a pricing matrix. I'm having trouble with the different costs for various cakes...anywhere from $3 per layer (ingredients only!) to $12 per layer. So, I'm curious how others handle this. Do you charge the same amount for all cakes, and make more profit on the basic recipes, or do you separate your flavours into categories with difference prices. Any feedback would be appreciated!
I think there are different schools of thought on this, but we separate flavors into categories and charge more for premium flavors based on the additional cost of ingredients for some types of cake, icing, etc. Like you said, our basic flavors like yellow, chocolate, white only cost about $3-$4 a recipe to make, while others like carrot cake have more expensive ingredients (like walnuts) and cost closer to $10 a recipe. That's just too big of a gap in price for us to charge the same for all of them.
I have one cost for all cakes. As a result I make more for profit on some than others. I don't like feeling like I am being nickeled and dimed when I buy something. To me, when there is a different price for different cakes, fillings, frostings...I feel like I am being nickeled and dimed. Plus, people cant' figure out what a cake for 100 people will cost even though my simple pricing is clearly spelled out on my website - let alone they would have to take into consideration different pricing tiers.
Now, the above is true for the majority of my cakes. I do say on my website "sugar flowers, bows, figurines will have an added desing fee". So, I do charge for extra design work based on each design individually.
But since all my brides want a "plan cake with a ribbon wrapped around it and fresh flowers", I charge the same price for the servings of the cake.
I charge the same for all cake flavors but I have 2 filling lists. The Standard fillings are included in the price of the cake (Flavored buttercreams, jams, fudge etc). The Upgraded fillings (Fresh Fruits, Candy bar fillings, curds, mousses, etc) which cost me considerably more or are labor intensive have an upcharge. The upcharge is the same for all upgraded fillings.
I charge by the cake, but my ingredients are high priced. I price the ingredients and overhead, then add on my time, as some cakes take longer to make. I have detailed descriptions of my flavors, so it is clear why some are more than others. This would be hard to do if you just listed the flavors.