I have no clue. I am amateur cupcake-occasionally cake- baker. When I do something, I am using better if not best ingredients, never veggie shortening - just butter. I make my own cupcake wrappers, toppers, decorations, etc.
My husband can't stop complaining about me not making enough money. He said, if he counts time I spend on it, I do make $2 per hour.
I am so tired of his comments. It is not that easy to ask more if not many people know you and your work.
I do enjoy baking. I know, sometimes I stay up til morning, sleep 2 hours and work again. In those moments I am telling myself how it is not worth it but when later on hear how "best I ever ate" cake or cupcakes they were, I feel satisfied.
Anyway, I wold love to know how to make it work. I wonder if with more time and experiences will everything go better.
Any suggestions?
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Hi Majka,
I just started my own cake business two months ago and I have been so busy lately, going through the same things you described.. in fact I'm staying up late right now working on a birthday cake for 100 people! You have to charge people what you're worth, otherwise they will wonder why your prices are so cheap. You have to think about all of the dinners you've missed, all of your sleepless nights, and all of the time you put into each cake. Hairdressers charge more than $30/hour, why can't you? I charge $3-$5/person and I usually make $5-$10/hour on each cake. I have noticed that I'm getting better at my time management and hopefully soon I won't be spending 10 hours on each cake. Just hang in there!
If you are going to be a real business, or just not loose money, you must work out precisely how much it is actually costing you to produce your product.
It's very nice to have a warm, fuzzy feeling when the customer says nice things about you cakes. BUT. If you are, in reality, paying them to take your cakes away, then you loose out ..
Many sites have spread sheets that can help you cost out, and there is CakeBoss Software that does the same ...
Some price matrices listed here - may be out of date, dollar-wise ..
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