Pricing For A Basic Cake

Business By calcav25 Updated 7 Apr 2015 , 5:39pm by -K8memphis

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calcav25 Posted 6 Apr 2015 , 9:42pm
post #1 of 5

I was wondering what you are charging for a simple 3 layer red velvet cake? I use cream cheese icing which is a little costly but I can order it through US Foods cheaper than I am buying it now. The last time I made one I got 16 slices out of it at $1.25 each and I think my cost to actually make it was around 5.90. Obviously, after the gas and my time to make the cake that is hardly nothing but I am in rural area so it can't be a lot but I don't want to be giving it away either. 

4 replies
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johnson6ofus Posted 7 Apr 2015 , 4:38am
post #2 of 5

So you sold it for $20 and it cost $6 (including soap to wash up, electricity to cook and prepare, etc)? Does that even work out to be minimum wage?

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-K8memphis Posted 7 Apr 2015 , 1:23pm
post #3 of 5

which is why home bakers need to have several orders like this at one time to make it work and need to be speedy enough to make it happen -- starting out ideally you'd want 1-2 tier cakes/sculptures a week peppered with some easy stuff like a few quarter sheets, 10" cakes or something -- not that prices shouldn't/couldn't be higher but you gotta work with your market too -- it's a balance of workload and speed on the scale of proper pricing

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calcav25 Posted 7 Apr 2015 , 5:15pm
post #4 of 5

Well I am making them as I work at the restaurant I own, so really the rest of the food that I am cooking would pay for the cost of the electricity and everything. This is really just  a way for our customers to have a dessert if we have them. Some weeks I don't have time to make a dessert and some I do.

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-K8memphis Posted 7 Apr 2015 , 5:39pm
post #5 of 5

sorry -- a lot of posters here are home bakers -- in your first post you seemed to want to be paid for your gas and time then by the last post you figured that the restaurant covered it which it probably does -- but still i'd slowly up the price a couple times by 25 cents a pop -- $ 1.75 is not too much to pay for a nice slice of cake even out in the country -- if the traffic will bear it -- $1.25/srvg for cake that sells is way better than $1.75/srvg for cake that doesn't -- i had a tea room and selling desserts was a problem for me --

we have a quirky restaurant here that charges $7 a slice for 'old fashioned layer cake' plus strawberries & whipped cream and they are not generous with any of it -- then on the other side of the spectrum dominos pizza sells two of their lava cakes for 5 bucks and some extra sauce for 59 cents here in west tennessee so that comes out to be about $2.80 for one serving -- i think layer cake at the grocery store is about $1.00 a slice -- so there's some local (to me) marketing info there --

so you gotta judge your market too --

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