Any Advice Please Xx

Business By Kirstio Updated 15 May 2018 , 1:29am by me_me1

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Kirstio Posted 29 Apr 2018 , 8:14am
post #1 of 11

Hi

ive been making cakes for a few years and like most people started off with my children's birthday cakes and then began making them for friend etc.

its got so crazy that I need to think about setting up as a business but I have no idea where to start?

im so busy that I don't want to advertise but guess I still need name/cake page etc??

Also I have no idea about pricing? Some people say I charge way too low but some friends never get back to me when I mention a price as if it's too much?

ill try and attatch some pics if I can 

Any advice would be greatly appreciated 

thanks 

Any Advice Please XxAny Advice Please XxAny Advice Please XxAny Advice Please XxAny Advice Please XxAny Advice Please XxAny Advice Please XxAny Advice Please Xx

10 replies
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SandraSmiley Posted 29 Apr 2018 , 3:14pm
post #2 of 11

Your cakes look great, but you didn't mention your pricing, so there is no way to know if you are charging too little.  Don't be surprised at being accused by some people of over charging, even when you are seriously under pricing your cakes.  There are lots of people out there who think you owe them your time, sweat and money, just because they want it.  You do not need them in your life, so don't give them a second thought.

You must calculate the cost of ingredients and other expenses incurred during the process of making a cake, then add in a decent salary for yourself, based upon how long it takes to make the cake (including delivery, etc.)  Don't be surprised if you find you are underpricing your work.  Most people do, in the beginning. 

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cakefan92 Posted 29 Apr 2018 , 3:32pm
post #3 of 11

If you are so busy that you don't feel you need to advertise, then you should be making enough to support yourself with cakes.  If you're not, then you're not charging nearly enough.  Research the prices in your area. You should have spreadsheets out the wahzoo with ingredient and other costs and different suppliers' prices, etc. As Sandra said, most people undercharge in the beginning. Be sure to include utilities, insurance, cleaning supplies, gas for your car, and most especially your time to research, shop, design and decorate. Your cakes are very good and will only get better with time.

You'll find that friends and relatives are probably not your target market. They usually believe they should get a "special price" because after all, they're special. Any discounts are up to you, but if you're going to have a business you want to make it clear what your pricing policy is going to be for them. And stick to it.

Good luck.

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kakeladi Posted 30 Apr 2018 , 8:12pm
post #4 of 11

Yes, what they ^^^ said.  Your work does indeed look very nice.  Yes, I see a few 'boo-boos' but we all have those now and then :)  A name and pricing will depend a lot on your location - U.S. or ??  If US what type of location- tiny rural area vs small town vs city vs major city?  As cakefan92 said, you need to see what the 'going price' is in your area vs what you spend in making that cake.   It's not just ingredients, but also electric/gas, water, taxes, boards, boxes, delivery fee (if you deliver vs they pick up), and soooooo much more goes into pricing.  

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Kirstio Posted 13 May 2018 , 6:00pm
post #5 of 11

Thanks I charged £45 for the Harry Potter, drips, GOT, clapperboard 

and £70 for the baby bottle and battleship 

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SandraSmiley Posted 13 May 2018 , 7:20pm
post #6 of 11

I don't know a thing about pricing where you live, but where I live - rural USA - you probably need to at least triple your pricing.  I doubt you are breaking even on your ingredients and you are providing high quality cakes. 

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me_me1 Posted 14 May 2018 , 8:24am
post #7 of 11

Whereabouts in the UK are you @Kirstio? Your pricing will depend on if you're in London or some other major city or a little village, and even then it depends on where in the country you are. I reckon you need to at least double your prices though.

I miss London so much!!    :)

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Kirstio Posted 14 May 2018 , 9:58am
post #8 of 11

Hi me me 

I'm in Staffordshire. A town just outside Birmingham.

xx 


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me_me1 Posted 14 May 2018 , 10:37am
post #9 of 11

Oh, beautiful countryside! I used to live in Stockport, bit further north   :)

It can sometimes be hard to find other caker's prices without asking them directly - and sometimes that can be a bit intimidating. I just had a quick look on google maps and there's this chap near Sutton Coldfield which is near-ish you, I think??  http://www.benthecakeman.co.uk/galleries/chocolate/

Now, you might not be at the same level as this chap yet, but he has very handily priced some of the cakes in his gallery so you can get an indication of what sort of cake can get what sort of price in your sort of area of the UK. I hope that helps!

How big were your GOT and Harry Potter cakes? Were they 8"? If so, you've only charged about 2 quid per portion, is that right? And those cakes have got loads of detail and cool fondant work that looks like it would've taken ages. That Ben bloke is charging at least three times that (based on a very very quick look at his website). As I said, you're not quite at the same level yet (but you're very good, don't get me wrong!) but you're definitely selling yourself short   :)

xx

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Kirstio Posted 14 May 2018 , 10:48am
post #10 of 11

Thanks me me xx

yes I'm about 15 minutes from Sutton Coldfield 

ill have a look at his page.

I don't understand the price per portion part as can never work out how many it serves

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me_me1 Posted 15 May 2018 , 1:28am
post #11 of 11

There are lots of charts online that show how many portions you can get from each tier and how to cut them up etc.

I tend to use this simple table to work out how many portions (dessert or coffee) I can get from each size tier. I know some people use the Wilton charts, some use Earlene's and there are some slight differences between them all...  this one works for me and my clients. I've never had anyone say there was too much or too little cake using this one.

Any Advice Please Xx

I have also had two little wooden blocks made up in the standard dessert and coffee size portions with pretty writing engraved on them saying 'Dessert' and 'Coffee' and it's really helpful for couples who have come for a tasting/design consult as they can see just how much cake they are going to be getting. I've also got display dummy cakes on hand to show them tier sizes and different configurations. I'm a visual person, it helps me too!

This is the formula I use when working out prices:  (Labour + Ingredients Costs + Sundry Costs + Utility Costs) x Profit = Total Cake Price

I hope all this helps you!   :)

xx

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