How To Price A Cake

Business By alschmelzle Updated 26 May 2016 , 11:41am by costumeczar

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alschmelzle Posted 26 May 2016 , 2:47am
post #1 of 4

I am just to get my name out into the world of cake decorating.  Well maybe just a some of the locals!  Nevertheless, it's a start.  I have never done this for a profit before, though, and I am having trouble determining how to price my cakes.  I know I have to factor in the obvious stuff like ingredients but the labor is what I'm struggling with.  I have read that some people starting out just add up all of their direct costs (ingredients, tools, etc.) then add a certain percentage to that price to get a final price, while others determine a set rate for labor.

Does anyone with experience in this matter have some tips for this rookie? 

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kakeladi Posted 26 May 2016 , 5:22am
post #3 of 4

Please take the time to google "pricing cakes on Cakecentral'.  There are many, many detailed threads that will help one figure out how to price their work.   It is a lengthy and involved process so it's best you find those discussions and read them well.

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costumeczar Posted 26 May 2016 , 11:41am
post #4 of 4

Read my article in the latest issue of American cake Decorating...The basic formula is expenses+wages+profit but that's the tip of the iceberg. And in a country where minimum wage is going to be $15 an hour in some places, charging $5 an hour for your time shouldn't be the norm. You also have to take your local market into account, but it's not so easy a process as the people who say "cost of ingredients times 3" make it out to be.

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