Pricing?

Replies to This Discussion

Permalink Reply by Tracy Lynn Buttermore on August 30, 2011 at 12:22am

I run into the same problem, I usually start at a $1 per slice for a basic cake, the price goes up, if it is a stacked cake, fondant, etc.  Most, but not all of the clients in my area, can't afford what most people charge.  I usually sell myself short, because its a friend or friend of a friend etc.  But the past weekend I had a lady who does cakes tell me I def need to start charging more.  So I have increased my prices, slightly.  A cake I use to sell for 70 is now 100, I had a lady ask about the cake design the other day that I sold for 70 , and she asked how much it was. so i told her 100 and to my surprise she said no problem.   That was a huge relief to me..So I try not to go to high, but I def get my cost first then add at least double, if not triple the price.

Permalink Reply by Rachel Carty Smart on August 30, 2011 at 1:30pm

Thanks for responding!  It's so hard to price because most people don't know what goes into making one, and the cake shows are all edited to 30min or an hour, so in an hour, you see a cake that in reality, probably took a week to make! I did a baby shower cake as  a gift last month, and was asked how much I would charge for it.  I said I didn't know, but took a poll of my friends and family.  My mother (who btw is super cheap) said she would pay $20 or $25 for it.  It cost $40 to make!  It was a sculpted duck in a wood-look basin (made with those Peperidge Farms Pirrouette cookies and fondant)  with blue piping gel for water.  My husband's co-worker on the other hand, used to work in a hotel that does huge events and said he would expect to pay $120-140 for the same cake.  Someone in another group posted an article about pricing.  It showed me I need to start valuing my time!  :)

Permalink Reply by Sara Hankins-Jurgens on August 30, 2011 at 1:50pm

im in the same boat... im just starting to do some for others. I have done 3 in the last month. and 2 of them I havent charged at all for, but they were really simple ones and it cost less then $10 to make them. Then I made 100 cupcakes for my brother's wedding and instead of charging them they bought the stuff for them and then i gifted my time as their wedding gift but they wanted to pay me.

Permalink Reply by jagdish tiwari on August 31, 2011 at 8:59am

You can have 2 methods

1)If you yourself makes the cake (no staff) then calculate your time needed to finish the job and set your own rate

eg-10$/hr or 15$/hr or 20$/hr.You are the boss.But set some fix formula

 

2)If you have staff then Total input cost(Raw Material/Labour charge/Electricity bill/corporation tax and all other charges+Profit %=Sales price).Again Profit % you are your boss.It can be 50% - 300%.

 

Permalink Reply by Allison D on September 5, 2011 at 11:39pm

Just thought I'd lend my 2 cents into this discussion! 

 I have been making cakes for friends and friends of friends for the last 2 years.  I only ask to be reimbursed for the cost of my supplies and gas mileage.  I'm always told that I don't charge enough.  But where I live, if you don't have a licensed kitchen, you are not allowed to "charge" for the cakes.  I will ask for a bit more if I have to purchase a new tool or something specific to that design.  But for now, I'm happy when I get to pursue my passion and break even! 

 

Best of luck to you!!!