I don't usually make a sheet cake, but I have a prospect customer wants to order a sheet cake of the mentioned sizes. I'm only a hobby-ish baker, and it's very rare that someone would order a cake from me,LOL! So, I was thinking this would help me w/ the word of mouth advertising. My specialty is making eggless cakes, cheesecakes and other sweets, so yeah, please sweet peopel give me some pricing ideas. Thanks in advance (^_^)
To price a cake you need to add up the ingredient cost (including packaging), the labor cost (# of hours needed to fill the order * your hourly wage), and allocated overhead (the portion of utility costs, liability insurance, etc. applicable to that cake), then add your profit margin (typically in the 20-30% range).
As a point of reference, we start at $69 for a two layer 1/4 sheet and $119 for a two layer 1/2 sheet cake.
We also make eggless cakes, if your customers have egg allergies then liability insurance is an absolute must if you don't have it already.
Thanks Jason, just a dumb question, how do I avail of the liability insurance? All I know is that it's now legal here in FL to bake and sale from your home kitchen, and I don't have any sort of formal business license or anything. Thanks again for the help.
The FL cottage food law says that you don't need a health dept inspected kitchen to sell food, but you should still get a business license (typically available from your city govt), file a d/b/a if you are operating a business under a different name (the county govt can help you here), and keep track of your income and expenses for tax purposes.
Many people here use State Farm or The Hartford for liability insurance for their home-based bakeries. The premium is usually in the $400-500/year range, which is a great deal considering how much coverage it gives you.
I live in Fl and even before the Cottage Food Act went into effect I had The Travelers as my insurance company. Call them and they can give you and agency to help you. I pay right at 250.00 and have a great policy.