How Much Would You Pay?

Decorating By Ybird Updated 7 Aug 2011 , 10:02pm by jason_kraft

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Ybird Posted 7 Aug 2011 , 7:51pm
post #1 of 2

Hi i was wondering if any one could help me with pricing of cakes. I make them at the moment just for family and friends and get told i dont charge enuf, i just like to charge for the cost of my matterials and a little bit of time as i enjoy doing it just for a hobby but i get told that i give them away

Could i have some oppinions on how much people would pay for my cakes, i have a few in my gallery.

Thankyou for looking

1 reply
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jason_kraft Posted 7 Aug 2011 , 10:02pm
post #2 of 2

To price your cakes you need to determine your costs first, including ingredients, labor (paying yourself a decent hourly wage), and overhead (such as insurance). Once you know your cost, add 20-30% to get your price.

You may want to take a look at the laws in your state first though, some states require a licensed and inspected commercial kitchen in order to legally sell food products, while other states have Cottage Food Laws that allow you to legally sell food made at home. We charge in the $5-7/serving range for tiered cakes because we have to pay for commercial kitchen rent, but if you can legally operate from home you might only need to charge $3-5/serving.

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