How Do You Price Cakes?

Business By theangrycupcake Updated 1 Jan 2018 , 6:15pm by johnson6ofus

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theangrycupcake Posted 1 Jan 2018 , 6:27am
post #1 of 3

I started creating my prices while using box mixes and I would double what it cost me to make and charge that. I would include ingredients, packaging, and any extras like delivery or dowels, etc. Now I no longer use box mixes and buy in bulk so I am most likely spending less now.

I know most people charge per the slice, and I recently saw a post saying they charge $3 per serving for a frosted cake and more for fondant of course. I did the math and it seems my prices are very close to being $3 per serving and yet I know my prices are very low compared to other cottage food bakeries in my area. When you say $3 for a slice, and have maybe a ten inch round with 16 servings and that is $48, is that the total price or would you add everything such as packaging after that? Right now I sell ten inch round cakes for $50 which adds up to being about $3 for a slice but I'm wondering if the packaging and your time is included in that. 

Right now, I talk to every customer individually and have a guide in my notes on my phone to tell me what to charge so I charge each person differently depending on what they want (fondant, edible images, etc) but I am now trying to create a menu and have dead set prices but I am still not sure how much to charge for cakes. 

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hep275 Posted 1 Jan 2018 , 5:55pm
post #2 of 3

I am a registered home baker in the UK.  I have a full time job and do cakes 'on the side'.  I don't advertise so don't get lots of orders but I have probably averaged 2 orders a month since registering in April - small scale in comparison to some I know but it suits me.  

The way I used to price my cakes was to work out all my costs - so ingredients, cake drum, cake box, ribbon etc etc and then I would estimate how long it would take me to complete it - allowing for making flowers or whatever was needed and multiply that time by my hourly rate.  I started to find it a chore to price every time some asked for a quote so I have recently made a basic price list for all sizes from 6" up to 12" round and square so for example an 6" round cake with simple decoration (really just covered with fondant) would cost £45 or £55 if I used ganache under the fondant instead of buttercream.  I now use this as a starting point for quoting, if someone wants roses or other flowers, I can price for them and add to the basic cot.

I've also come up with a pricing structure for cupcakes depending on how they are decorated (fondant or buttercream), what flavour is required and how many are being order.

I hope that helps you a bit.  Helen 

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johnson6ofus Posted 1 Jan 2018 , 6:15pm
post #3 of 3

Your problem is not the price per slice, but the size of the slice. A 1950's 8" round cake "served 8" large slices, but made 24 cupcakes, right?  Is that 24 servings, or 8? A local high end steak place serves one nice large cake wedge, like you describe, for $12. It really is 3 servings, and is delivered with multiple forks.

"Industry standard" says a 10" round cake serves 38, so at $3 / slice is $114.00.

I suggest you research " cake serving chart" and see the options. Wilton standard, "party" size (about 1.5 slices) and even Earlene's which is about 1.25 slices per "serving".

I think this is why your numbers come up so low.

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