How Do You Enter In Packaging When You Figure Out Your Pricing

Business By chefjenbarney Updated 10 Apr 2015 , 8:24pm by -K8memphis

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chefjenbarney Posted 10 Apr 2015 , 7:00pm
post #1 of 3

Generally speaking, when I figure out my pricing I charge 3x what the base ingredient cost is.  For example: if I had $5.00 in ingredient cost on a cake I would charge $15.00.  What is the best way to include the cost of the packaging?   Do you charge the cost of the packaging and add it to the final amount, (For example if my packaging is 2.00 the final amount for the 15.00 cake would be $17.00.  Or do you make profit for your packaging and add it into the original ingredient cost.  If this were the case, on that same cake it would jump to $21.00.  

Do you make profit on your packaging or do you just charge what your cost is?

Thank you!


2 replies
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Pastrybaglady Posted 10 Apr 2015 , 7:28pm
post #2 of 3

X 3 doesn't work well for baked goods.  Our ingredient cost is way lower than savory.  Try ingredient and supplies (including board boxes and ribbons), overhead expenses, hourly wage plus 20% profit.  You will see a very different number!  You also need to take the going market rate in your area into account.

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-K8memphis Posted 10 Apr 2015 , 8:24pm
post #3 of 3

make all the money you can -- selling any custom cake order for the dollar amount you mention even the high dollar amount is concerning --

so i think custom cakers should be making the same or more as the nicest brick and mortar bake shop in the area so long as they are charging at least in the $4 range for tier cakes

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