Pricing Cakes Help

Business By Jenny.cakes.it906 Updated 25 Aug 2018 , 4:52pm by -K8memphis

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Jenny.cakes.it906 Posted 23 Aug 2018 , 12:53pm
post #1 of 5

Hello! I know this is a question asked often, but I’m asking again! I need help figuring out how to price cakes. I live in a small town where people except Walmart prices. I make everything from scratch, including the fondant and all decorations. I’ve been trying to price by serving + decorations. I’ll be making a Mac makeup cake soon with homemade decorations, three layer, 8 inch cake. Do you think $35 for the cake and $20 for the decorations is reasonable? 

4 replies
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kakeladi Posted 24 Aug 2018 , 9:25pm
post #2 of 5

Your price sounds W A Y! too low.  j For 3 layer, 8" cake you should start somewhere around $50-75.  Without taking into consideration *everything* about pricing  just add up your ingredients and packaging.  From many of the posts on here I bet you will find you spent more than the $30 just on ingredients.  And when you add in all the 'fringe' costs such as insurance, utilities etc, etc you see where you will be paying your customer to buy from you :(

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-K8memphis Posted 25 Aug 2018 , 12:40am
post #3 of 5

yes it's very reasonable for the buyer but like kakeladi said not for a business -- i could buy that cake for you -- sell it for at least $100 rock bottom price -- and make $45 easy peasy --

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JustOneMoreCake Posted 25 Aug 2018 , 4:12pm
post #4 of 5

If they expect Walmart prices, they can go to Walmart.   If you price your cakes that low, you will end up actually losing money. Better to turn down the order and still come out ahead.

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-K8memphis Posted 25 Aug 2018 , 4:52pm
post #5 of 5

making money baking takes a hook of some kind -- either take the years into account and just build build build a haute couture cake shop one cupcake at a time and if you bake it they will come -- but that's really really difficult -- or do sugar free or gluten free, etc. -- do a gift shop cake shop or a lunch counter cake shop -- i understand how hard you're willing to work but like you know -- where is your clientelle -- there is nothing protected in baking -- no secrets -- no holds barred -- any suzy homemaker can set up a business and they do try regularly -- so take all that into account --

also do you feel you can get paid enough to make doing everything from scratch viable? for me i would/could not but that's me -- baking for money is tough tough tough -- best to you

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