charging to much..?!
I am just starting to charge for cakes but when I broke down my cost t figure out what to charge I charged $20 for an 8" round cake! I felf so bad since I am so new and my work isn't great! I have looked on here before for some ideas of pricing and if I took my cost and X3 it would have been a $45 cake! I need some tips of how to lower my cost or a good price range for someone that is my level.
Replies to This Discussion
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Permalink Reply by Michelle Galloway on
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Thanx for all the advice!! I planned to use a 2"pan and split it for filling (i like havin filling in my cake!) and I usually figure generous pieces for Bdays and such. Weddings I figure smaller pieces. Anywhooooo.....I quoted her $75 This was a basic no frills recipe (usually use basic cakes for kids Bdays) and she "just found someone else yesterday to make the cake for her" . This area just doesnt have a big market for quality cakes except maybe some weddings. Right now i am struggling between lowering my price to get jobs and therefore refferals vs. keeping my prices up and losing jobs. Oh well..maybe next time :D
Jeanne said:I figured that, but that cake doesn't look like it would be 2 layers tall... it looks like it's only one. =]
Denise said:Jeanne- I base mine off a 2 inch deep pan /two layers.
Jeanne said:I agree with the PP on everything but price. You have to sit and figure out what it takes for you to make a cake. How much for your vanilla cake recipe to fill a 9x13 pan. Also, a single layer 9x13 will not serve 40 party servings... it will serve about 25 2x2 squares, so if you aren't going to make this a 4" tall cake then you will have to make sure you adjust your servings.
I would charge no less than $5/serving, so my price would be $125. BUT... you need to be sure that you can make a profit like Denise said. If you are using more expensive ingredients, that might not be a big enough profit margin for you. You absolutely cannot compare yourself to Publix and you can't even consider their prices when you are thinking about your own. You can call around to other custom cake businesses if there are some in your area to get a feel for pricing, but the chain stores and the run-of-the-mill bakeries that just do simple cakes aren't the same as what you are looking to offer.
Michelle Galloway said:OK, Im askin the pros!!! I have been makin cakes for years, but in the last year have decided to jump in and pursue this as a business. As with everyone, i have pricing concerns. I am in a small town and Publix cakes are all the rage!! LOL. My husband and I are arguing about pricing for a client comin up. So I'm askin suggestions for pricing for a spongebob cake like the one in this link http://jirehcakes.com/index.htm it will be a lemon cake w/ vanilla BC, fondant covered and decorated to serve aboout 20 people ( I am planning about a 9x13, cut to shape)....Thanx for any advice!! :D
Jeanne said:Oh sweetie... it doesn't matter how long you have been doing this. Iif you can decorate you should be paid like anyone else. If you think you charge too much just think of me okay? I charge $100 for an 8" round cake... and I make no applogies for it.
You have to think of it differently. You are thinking like a customer, and you will set yourself up for failure that way. You can't think of what you would want to pay... you have to think how much do I need to charge to pay the bills. Cost times 3 is a joke of a pricing plan. I say that because you are not just providing ingredients. You are providing the service of making a cake for someone who either can't do it themselves, or doesn't WANT to. This includes... time spent thinking up ideas and talking with the client, time spent shopping for the ingredients, time spent mixing and baking, time spent decorating, time spent CLEANING UP THE MESS, the box and the boards and the piping bags, the lost sleep trying to squeeze it all in between kids and family. It is *SO* much more than just flour and eggs and sugar and a little magic.
Now I'm not saying that everyone needs to charge what I do. BUT... you do need to make sure that you are compensated for the blood, sweat, and tears that goes into your work. I live in a little town in NH... not a big city. I have a $100.00 minimum order and that is final. Just because someone wants Walmart prices doesn't mean they get them. You are not Walmart. You can't buy thousands of pounds of flour at once so your costs are much higher AND you do better work. You're not Elisa Strauss (not yet anyway), but you need to value your work. If you don't... no one will. =]
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Permalink Reply by Yndara on
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This topic is very interesting I recently just started selling cakes, the last week was my first sale was a cake 8" i sold it for 25 dollars I know Maybe I should charge more but the truth i was very happy with my work
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Permalink Reply by Shannon K Orona on
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I'm in California and I will usually charge $2.00 to $2.50 per person for Fondant work, this is very cheap in my area most are charging $3.00 to $5.00 for fondant and $2. to $4.00 for buttercream.
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Denise, I have only been doing cakes for sell for six months and I really needed the practice lately I have been thinking of increasing my rate since it does take so long to do some of the cakes that I've done. I really try to work with some peoples budget but you are so right I am not making what I am worth. Thank you for your comments.
Denise said:Shannon- You are selling yourself WAY SHORT!!!! I went and looked at your pics and if the going rate for fondant in your area is $3 to $5 then you should be charging $5 per serving.
Often times we forget that in order to make a profit we must not only pay for our supplies, but we me must also pay ourselves for our time. If you would not work for someone else making less than minimum wage then definitely don't work for yourself making less than minimum wage.
Shannon K Orona said:I'm in California and I will usually charge $2.00 to $2.50 per person for Fondant work, this is very cheap in my area most are charging $3.00 to $5.00 for fondant and $2. to $4.00 for buttercream.
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Permalink Reply by Renay Zamora on
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I'm getting to the point now where I'm starting to be okay with potential clients turning me down because of my prices. And my prices are not that crazy! I live near Nashville, TN and the going minimum price per serving is around $5-7, so I charge well below the market I'm trying to reach. I'm thinking that maybe I need to charge at that level if I want that level of client, KWIM? I'm still contemplating this change, but I think it may be the way to go, if I want to get the kind of work/client that I want...
I've learned over the past year of doing this somewhat regularly, that my time and talent is just as important in figuring how much I charge as anything else. Baking and decorating a cake for someone takes time away from my family, it messes up my house, it stresses me out and it takes up so much of my energy that I'm almost relieved when someone decides to go elsewhere. That way, when someone who really WANTS one of my cakes hires me, I know they really want it and I can give it my all for a short time and then be done with it. I just got an order this past week from a bride who saw one of my painted cakes online and she wants me to make one for the groom's cake - she's getting her wedding cake done by Sylvia Weinstock and having it flown in the day before her wedding, so price is no object - and she didn't want a consult or tasting, she actually said she doesn't really care what it tastes like, she just wants it to look amazing! I was floored! And she didn't even balk when I quoted her my highest price per serving ($4.75 per serving for my painted cakes). THIS is kind of client I want!
It takes a while but I'll figure it out eventually. Better now than 10 years down the line, when I don't want to do it anymore because I'm burned out from doing it for pennies and not feeling appreciated...
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Denise thank you so much for your advise. I will be increasing my prices based on ingredients and time. I have been thinking about it and just unsure of myself, but I have been looking around at different cakes lately and have found that my cakes are pretty good lol. Thank you again for your advise
Denise said:Shannon- The amount of years you have been doing this is not a factor. Some people do this all their life and their work still looks like they just took a class (or have not taken classes). Others pick up a pastry bag and they walk away with a cake that looks like it should be in a n Art Museum. You do AWESOME work and if you want the kind of client that appreciates your work you need to charge what those kinds of clients are willing to pay. Don't charge Walmart prices unless you want Walmart customers.
When you undercharge for YOUR gorgeous work, you not only hurt yourself, but you also hurt other artists in your field that are charging what they are worth. I also sell my shippable baked goods and chocolate confections on Etsy. It floors me to see someone list 1 dozen decorated sugar cookies for $6. I charge $2 per cookie because I know that is how much I must charge in order to make the cookie AND make a profit. There is no way that other person can be making money yet they will undercut the general population under the misconception that they will make it up in volume. This only works when you are reselling something that someone else has made for a dirt cheap price (sweat shop products).
Well that is my 5 cents worth. Sorry if I sounded like I was ranting, but this is one of my pet peeves. :-) Please,please sit down and figure out what it costs you to make your cakes and then make sure you also charge for your time., You are worth it!!!
Shannon K Orona said:Denise, I have only been doing cakes for sell for six months and I really needed the practice lately I have been thinking of increasing my rate since it does take so long to do some of the cakes that I've done. I really try to work with some peoples budget but you are so right I am not making what I am worth. Thank you for your comments.
Denise said:Shannon- You are selling yourself WAY SHORT!!!! I went and looked at your pics and if the going rate for fondant in your area is $3 to $5 then you should be charging $5 per serving.
Often times we forget that in order to make a profit we must not only pay for our supplies, but we me must also pay ourselves for our time. If you would not work for someone else making less than minimum wage then definitely don't work for yourself making less than minimum wage.
Shannon K Orona said:I'm in California and I will usually charge $2.00 to $2.50 per person for Fondant work, this is very cheap in my area most are charging $3.00 to $5.00 for fondant and $2. to $4.00 for buttercream.
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Permalink Reply by Kim Washington on
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Hi Sherry, i'm even newer than Trisha and i was wondering if u are to add time and labour to that cost?
Sherry Qualls said:Pricing in a nutshell
Cost of your ingredients
what your market bears (what other bakers in your area are charging)
How much do you want to make
I think your talent is fine... I love the butterfly cake. Cost of ingredients x3 is an outdated pricing structure..you will better price your cakes using the above and never ever let anyone cost compare you to Walmart...you make custom cakes....Walmart can't even come close to that. Did I read your post right and you feel bad for charging $20.00 for one of your cakes? Phooey on that Trisha...bet your cost of ingredients alone comes close to $20.00..you have to believe that your time and talent is worth charging for..and throw the "feeling bad" out the back door...if you want to make cakes a money making venture...treat it like business!! If people don't want to pay your prices...they are not your customers!!!!
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Permalink Reply by Jeanne on
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Yes.. that would fall under the "how much do you want to make" category. =]
Kim Washington said:Hi Sherry, i'm even newer than Trisha and i was wondering if u are to add time and labour to that cost?
Sherry Qualls said:Pricing in a nutshell
Cost of your ingredients
what your market bears (what other bakers in your area are charging)
How much do you want to make
I think your talent is fine... I love the butterfly cake. Cost of ingredients x3 is an outdated pricing structure..you will better price your cakes using the above and never ever let anyone cost compare you to Walmart...you make custom cakes....Walmart can't even come close to that. Did I read your post right and you feel bad for charging $20.00 for one of your cakes? Phooey on that Trisha...bet your cost of ingredients alone comes close to $20.00..you have to believe that your time and talent is worth charging for..and throw the "feeling bad" out the back door...if you want to make cakes a money making venture...treat it like business!! If people don't want to pay your prices...they are not your customers!!!!
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Permalink Reply by Diana on
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I am so happy I found this discussion thread! OMG pricing has been difficult for me! Because as most of you, I felt like I shouldn't be charging so much and then I find myself charging not enough! I also noticed someone mentioned, you cannot charge so little for so long and then all-of-a sudden hike up the prices!!! I'm still struggling with this. I recently made a guitar cake for someone and charged her $70, because I remember thinking I didn't want to cut myself short since I knew how much work would go into it (worked on it from 2pm until Midnight, btw) Then I thought I was charging too much, but she paid for it!!!
But here is my next dilema... I simply don't have the time to make a cake from "scratch" since I work full-time and don't usually get home until 5:30pm (plus I have a 4 year old and a husband that sometimes "acts" like a 4 year old=), so I use cake mixes... I FEEL TERRIBLE!!! But I still put a lot of effort into the cakes looking great! I make my own BC icing (different flavors) and MM fondant! Am I wrong for this??? They are still getting beautiful cakes that taste great, just, sometimes I don't make the cake itself, from scratch. Am I horrible for this???
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Permalink Reply by Kathy Kmonk on
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NO! YOU ARE NOT HORRIBLE! Lots of folks use cake mixes. Some use straight up cake mixes, some use cake mixes they add other ingredients to. You'll see endless discussions on this subject as well as the pricing issue.
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Permalink Reply by Teneisha Williams on
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I know I need a good whoooping as in the words of Jeanne where pricing is concerned...put it simply..I suck at it...I've done cakes for just a little over the cost...but I was sure to tell my clients that these prices are introductory as I am just starting out and I'm trying to hone my craft and they are to tell no one of the cost...My prices go up every time I get a new client...I will be doing some cake decorating training late September to perfect my techniques or better yet learn the proper techniques so that I can produce cakes that I can say "perfect!"...and the almost FREE cakes will no longer exists...I will have to be paid for all that I put into my cakes....sorry potential clients...take it or leave it....:)
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Permalink Reply by Ra Shonda Stevenson on
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I am also glad that I have not only found this website, but this thread as well. I am also in the process of trying to figure out how much to charge for my cakes. You ladies have definitely given me a lot to think about!
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