U.k Pricing

Business By tessholly1 Updated 26 Feb 2016 , 9:27am by tessholly1

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tessholly1 Posted 23 Feb 2016 , 5:36pm
post #1 of 3


I'm starting a business right now after years of hobby baking.. I have all my certificates, checks and experience etc but I'm struggling with pricing.

As a hobby baker I charge family and friends for the ingredients, cake boxes etc but have not made profit. Now as I work out my wages and profit etc, as well as researching other businesses within my area, I'm worrying that family and friends are going to think Iv gone crazy.

For example I once charged £60 for a 2 tier cake with so much handmade detail and decoration.. But without wanting to undercut other bakers around me I would be bumping this up to around £200!!

want to make an actual wage and a profit so I know I should be charging these higher prices, it was just such a shock to me at how low I was pricing previously!!

Im hoping people understand that I'm trying to step it up and actually make a business now. If people come back and prices are double what they've paid before, how do I explain professionally?!

TIA for any advice :)

2 replies
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Snowflakebunny23 Posted 23 Feb 2016 , 6:17pm
post #2 of 3

Erm, you just have to tell them but it comes down to your own personal business decision.  Where abouts are you?  My close friends and family get mates rates for cakes if they are having an event (and I am making the cake for it) and I would usually give a gift.  So the cake labour is my gift.  Thankfully, none of them have ever taken the mick and actually asked for one for anything other than a really important occasion so I am not loosing out.  I know some people aren't that fortunate and their friend/family circles are always asking for cheaper cakes.  Strangers will know no difference to that's not a problem.  The fuzzy line is for people you know-ish.  If your friends and family are your sole customer base then you need to charge full prices or you will go bust so it's a fine balance.  I personally haven't made anything other than a 3+ tier cake for a non-friend or family for ages.  People just won't pay over £100 for a birthday cake....even though it is proportionally the same cost as a wedding cake which people will happily pay for but hey.  That's the way it is and I am very pleased with it!  Less faffing with little characters and telling people that I cannot put Queen Elsa's picture on the front.  Lol. 

Good on you for making the jump though and I am really really pleased that you are quoting properly!  Sorry, that isn't meant to sound patronising...it is meant to be encouraging :-D


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tessholly1 Posted 26 Feb 2016 , 9:27am
post #3 of 3

Thank you so much Snowflakebunny23, you've really opened my eyes with your reply. Your 100% right, my dream would be to do wedding cakes.. In which case sooner or later I will hopefully be making less and less £35 birthday cakes that make me no profit as a business to make more time for wedding cakes. It will be hard at first to explain that my prices have increased but I would like everyone to start taking me seriously as an actual business now and not just a hobby baker.

Thank you for your encouragement :)

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