I am putting together my business plan and I am trying to get my prices together. My cakes were easy and so was the buttercream and fondant for the simple parts. I need to know how i put my prices together for rice crispy treat decorations and fondant decorations. Mostly for designs I haven't done before so i can get a general idea. If I've done it before I know how much i will need but for new designs it can be hard to determine how much i will use.
You should put those together the same way that you did the cakes. I just did an e-course on pricing...Let me quiz you for a minute, how did you do the pricing for your cakes?
I took the prices for my material and divided it up by the amount for each recipe to determine how much i'm actuallly using costwise. (2.95 for 5lb bag of flour divided by 5 to givd me the price of 1lb of flour). I did the same for my buttercream and fondant based on how much i use for each cake.
You also need to add in for your overhead expenses, your time and your profit. When you're pricing out things like a fondant topper your time is your most important consideration, the cost of materials will be a minor part of it.
Ok. Thank you. How do you figure out the time? I was thinking to charge 10% of the overall cost for time. Does that sound right or too much?
i have really bad allergies right now so I'm not getting what you're saying about 10% of time...i'm just going to say you should look into my pricing class, or at the very least use an online pricing calculator (they exist but I think most of them are pretty basic) to get a rough idea of what you should be charging. I'm so congested right now I can't process information, sorry...
Lol. That's ok. Can you send me the information for your class?
10% of the cost for the time? So let's say a topper cost you $15 of materials, you are going to add less than $2 for you time?!
Maybe I didn't get it right...
That's what I meant but now that i look at it it doesn't sound right.
Time is a very real expense. Figure out what you want for an hourly rate and as you practice note your time from set up to clean up. Also figure as you do mote you will get faster.
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