How i can calculate the correct amount to charge per slice

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Permalink Reply by Bettina Dwyer on December 1, 2011 at 3:52pm

There is no easy way to do this. What you can charge per slice will depend on where you live - in a small town with high unemployment you will not be able to charge (and receive) as much as you would be able to in a more affluent town or a city.
You must be able to cover the costs of making and baking though. The only way to do that is to break down your ingredients into pounds and ounces( or grams and milligrams, millilitres) or in the case of eggs cost per egg, then look at your recipe and determine how much you use = cost. For example a 2lb box of flour costs $7. Per ounce this is about $0.22. Your recipe asks for 10ounces = $2.20 for the flour in that recipe.
It's fiddly to work out but once you've priced out your recipes you have a reference that will need only slight adjustments with price changes.
The other thing to do is check out the prices of your competitors as well this will give you a gauge on what people are prepared to pay in your region. 

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Permalink Reply by suziq auzzi on December 7, 2011 at 12:36am

There are also other factors to include when you calculate the cost of a cake.

1. as Bettina said: the cost of  Ingredients, but also your supplies also. Cakes, frosting, fillings, ornaments/decorations, toppers/sculptures, purchases exclusively for that cake eg a specific pan .. Then there are your disposables, papers, foils, boards, boxes, plastics ..

2. Location overheads: depreciation on appliances, bakeware, decorating kit ...the use of your kitchen  - oven, refridgeration, freezer, dishwasher, kitchen cabinetry, storage .. cleaning expenses, hygiene expenses .. House costs apportioned for business usage: mortgages, insurance, power, gas, water, repairs & maintenance ...

3. Business expenses: Insurances and certifications, banking, accounting, taxes, office supplies, photography, advertising/signage, Computer costs including website,Telephone, customer service/consultations, food, drink, vehicle costs [cents per mile etc]

4. a reasonable hourly rate to compensate you for the cost of your time in consultation, preparations, making/baking/decorating, deliver, and cleanup ...

As well as checking other competitors, if they tell you, also check local businesses as well. Undercutting and underpricing will make difficulties when you want to raise your prices.

 

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Permalink Reply by Glais Santos on December 7, 2011 at 9:42am

Thanks help me your email and i didn't thing about  the other stuff you remind me.

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