New Business- How Much To Charge?

Business By Gabbbin Updated 10 Oct 2015 , 9:58pm by smile22

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Gabbbin Posted 15 Sep 2015 , 12:16am
post #1 of 11

Hi im Gabi, i am a New business. I had a customer ask me to make her this cake. A n 12" and an 8" round cake, flavor French vanilla and pink velvet. On the bottom green fondant and pink on top. I have to create baby fondant booties and a bow around the cake with white poke a dots at the top and a fence at the bottom. Is $140 to much? How much should I charge?

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Singerssoul Posted 15 Sep 2015 , 1:35am
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What is your business pricing?  My base buttercream cakes, that would not include any thing but a basic buttercream decoration and my base cake flavors would run a bit more than that for a 12" and 8" stacked cake. Granted,  I run a preservative/artificial free bakery.  Never the less, it sounds a bit low. But then, you know your areas well.  At your suggested price, that equates to about $1.66 a serving for about 84 servings based upon the standard 1x2x4 slicing price for that in round cake sizes.    

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Jinkies Posted 15 Sep 2015 , 1:50am
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Hi Gabi.  You really need to to research and set your pricing BEFORE taking any orders.  You are not making any money @ less than $2/serving.  You are way undercharging.

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ypierce82 Posted 15 Sep 2015 , 1:51am
post #5 of 11

To me, that is low, especially with the fondant shoes and bow, and fence. How are you operating a business without having your pricing already in place?

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OHaresTstyTrts Posted 19 Sep 2015 , 3:03pm
post #6 of 11

Yeah, that's rather low. For a standard buttercream cake I would charge $200 and for fondant would be $280 not including extra for custom detailing. It's all demographic, when it comes to pricing. We area we are currently in is a lower demographic and my prices are around the same as other cottage food bakers in this area. 

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amartin1900 Posted 21 Sep 2015 , 1:30pm
post #7 of 11

8" serves 24

12" serves 54

X $4 for fondant covered cake


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ladyonzlake Posted 22 Sep 2015 , 12:58am
post #8 of 11

Hi Gabi,

Congratulations on your new business!

Yes, you should have some sort of pricing in place before you take orders.  When I started I did some research to see what other custom bakeries were charging in my area.  Since I was new at the time I started a bit lower with cakes starting at $3 per serving and up but now after 7 years I have a $200.00 minimum order and start at  $5 per serving and up.   Good luck in your new business!

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chelsealiz Posted 7 Oct 2015 , 6:59pm
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Here is where i have come to, as i am just setting my pricing etc. for my cakes (its pretty build your own). I also charge an extra $0.25 per slice  for each additional tier (to cover doweling etc.)

 before i go to this chart (which is actually part of a larger form), i start by asking what their budget is, and how many servings they need. This right away lets me know (on average) how much $ per serving i have wiggle room with, to help their dream come true!

 I also ask my clients to bring me pictures of what they like would like to see. and also how many tiers. Say my client wants a tall cake that serves 15, with masculine features on it - and she has shown me a cake with a woodgrain pattern printed on white fondant, and a dark textured bow on the top  with a happy birthday gift tag for her dad. she also tells me he loves lemon, but doesnt want it to be lemon everything.  my basic chart would look like follows : I automatically know she only needs one tier, and a tall 6" can be cut into (up to) 24 slices at 1"x1" without them really losing out on cake. When i deliver the cake, i will have a cutting chart diagrammed for 16 people.

I am sure my charts will change as my options grow - but im trying to keep it pretty basic to start. (my imbedded chart didnt work out.. i have uploaded a file to google drive

These are the options for the cake i described above:

x Round 


 White $2.00

Cake Flavour Yes ($0.25) 

Filling x Choice ($0.50) Lemon Raspberry Curd


x Ganache ($0.50) Dark Milk White x


 x Choice ($0.25) 

Sub Total - $3.50

Height x Tall 6"+ (x1.5)

Tier 1 Total Per Serving - $5.25

This Cake Size Serves (1”x1.5” servings)  16

Tier Total $84.00

I would also charge if they wanted a fancy cake board(10$+),and for the custom made bow and gift tag($5-$10),

My total would come to 90-125 depending on the extras we had decided on. delivery would be included (within reason)

does this seem appropriate to people here?

*Last edited by chelsealiz on 7 Oct 2015 , 7:20pm
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Jinkies Posted 7 Oct 2015 , 7:20pm
post #10 of 11

Wow, you've really done your homework.  There really is no "appropriate" way to figure your price.  Whatever works for you and gets you paid is appropriate.  We all have different processes.

 For me, personally, that's too much work and thinking.  I have a much more simpler and streamlined way of pricing so I don't have to add every little thing in.  That just works for me.

The only suggestion I would have, is to not let your clients in on the process.  Clients will get frustrated if they think every little thing they want ups the price.  

Your idea of asking for a budget 1st is great :)

Good luck to you!!

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smile22 Posted 10 Oct 2015 , 9:58pm
post #11 of 11

Wait so you charge 200 for a basic buttercream cake how many layers or tiers seems a bit high

i want to start doing basic cakes 6 7 8 and 9 inch no tiers maybe two layers with filling and I wouldn't chArge 200

my cupcakes go for 20-30 a dozen 

and my cake pops 1.50 a pop 

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