Just starting out and need to know some price points for cakes >> please help ...I just received my first order
The best way to set your price for a product is to calculate your cost of making the product (including ingredients, labor, and per-order overhead) then add 20-30% for your profit margin.
Thanks! I will consider that but I also wanted to know, the competive prices are for cakes so that I can gage what I should charge. (especially being a newbie and not having perfected the craft yet)
It varies widely depending on the area, I've seen prices ranging from $1/serving to $10+/serving. Many home bakers tend to start in the $2-3/serving range. We start at $5/serving for tiered cakes, but CA requires a licensed and inspected commercial kitchen to sell cakes so we have extra overhead.
You are the best person to determine what market prices are in your local area, this should be part of the competitive analysis section of your business plan.
While it helps to know what people are charging, in the end your prices have to cover what you need them to cover. Not everyone makes the exact same product or has the exact same costs behind it.