Maybe We Should Be Like Mechanics And Charge By The Hour

Business By vww104 Updated 10 Oct 2006 , 2:26am by SweetThistleCakes

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vww104 Posted 9 Oct 2006 , 6:45pm
post #1 of 19

Even though I don't operate a cake decorating business I enjoy reading these threads. I only bake as a hobby and charge for ingredients. However, it seems as if the same theme keeps running for everyone running cake businesses: People don't want to pay for and don't value expertise, especially family and friends!

People do not realize the time and effort that goes into this! Too bad we can't show people what their cakes would really cost if we charged by the hour for labor! No one questions the $75+ hour that a mechanic makes! If they really knew the value of these cakes, perhaps they would appreciate our efforts just a little more.

(Or should I wake up and stop dreaming!)

18 replies
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SweetThistleCakes Posted 9 Oct 2006 , 7:12pm
post #2 of 19

I made my own Excel sheet to where I give itemized statements. Everything from ingredients to rentals, to labor to mileage for deliveries. It's a real eye opener for people. I work too hard to give away my cakes. thumbs_up.gif

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briansbaker Posted 9 Oct 2006 , 7:17pm
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SweetThistleCakes
wow thats a great idea!! can you give us an example (not on exel) On how you show your items? TIA.. P.S. your cakes are great!!!

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Chef_Stef Posted 9 Oct 2006 , 7:20pm
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LOL,

and can you imagine what we'd have to charge per serving if we charged them a true $75.00 an hour!!?? They'd go icon_eek.gificon_surprised.gificon_eek.gif

Heck, even at $20 an hour, I go icon_eek.gif sometimes at my OWN pricing...LOL
icon_wink.gif

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SweetThistleCakes Posted 9 Oct 2006 , 8:09pm
post #5 of 19
Quote:
Originally Posted by homecook

LOL,

and can you imagine what we'd have to charge per serving if we charged them a true $75.00 an hour!!?? They'd go icon_eek.gificon_surprised.gificon_eek.gif

Heck, even at $20 an hour, I go icon_eek.gif sometimes at my OWN pricing...LOL
icon_wink.gif




Oh I know, but at the same time you and I run businesses, not charities, Homecook! And thank you for your kind words.

Briansbaker, I'll try to explain it the best that I can. What I did was list all my ingredients per component. (ie- mmf, pwd sugar, water for MMF). I broke each ingreidient down by how much of measure one batch needs- (ie- 16 oz marshmellows, 6 cups pwd sugar, 2 tbls water). I then had the next set of cells represent the cost to me per unit. (IE- a gallon of water is $.72 - break down that gallon by tbls) that makes my formula I add how many batches of each product into the equation. It will produce the cost per batch- kinda like the "Original Price Matrix".

So when all is said and done, I have this formula set up for:
cake batter
frosting
mmf
labor (I leave this at a variable rate because there are times that I work for less or comp a cake for certain local biz owners)
supplies (cake boards, piping bags, etc)
mileage (to and from)
extras (roses, premium flavors, fillings, FBCT, fondant figures, anything that isnt a part of the above)
rentals (cake stand, pillars, etc)
Kitchen rental (I also factor in a portion of what I paid to be legal here- the cost of permits and such)_

I also have a formula set for sales tax (It's 8.25% here)

When it is a complete, I set a formula for the addition of all of the above and that total is what I charge.

I also include a thank you message at the bottom as well.
Let me see if I can attach a sample for you.

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Chef_Stef Posted 9 Oct 2006 , 8:14pm
post #6 of 19

It sounds like what I did with the original matrix...I tweaked the whole thing to reflect every ingredient and scrap of material I use, broken down by ts, TB, cups, etc., so I get a true cost (except for electricity, etc) on my cakes, labor, time, materials, etc. That tells me what I have to charge per serving and is so helpful in showing me that I can't back down on pricing unless I want to work for like $5.00 an hour. bleh

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SweetThistleCakes Posted 9 Oct 2006 , 8:44pm
post #7 of 19

FYI- when I print it and give it to the customer, I make sure I cut the order onto a new page and delete the specific measurements and ingredients of the order. My recipes are my recipes!

Here is a sample of how I work it. I've deleted some personal info about the client as well as mine, but you can get the idea of it.

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lionladydi Posted 9 Oct 2006 , 8:56pm
post #8 of 19

Not to get off the subject at hand, vww104, but where do you live that mechanics make $75 an hour. My SIL is an experienced diesel mechanic and certainly doesn't make anything like that. icon_lol.gif

If you are going to compare cake decorators to mechanics, then you need to mark up those ingredients, sweetthistlecakes. They pay one price at the auto parts and add a certain percentage to it before charging you.

Let's face it. We are like all housewives and mothers. We will never be paid what we are really worth!!!! thumbs_up.gificon_lol.gifthumbs_up.gif

Diane

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Rambo Posted 9 Oct 2006 , 9:08pm
post #9 of 19

I do not sell cakes as of yet, still contemplating that thought. But from a customer point of view I have to say your spread sheet is great. Too bad everyone doesn't do this...the doctors and the mechanics etc. This way you know what you've done and your customers know exactly where their money went. I suppose the only downfall would be those people who don't believe you spent X amount of time on a cake. My DH gets it only now because he's been around it, but the rest of the family says you spent how many hours on A CAKE? icon_eek.gif Then of course they hand me the knife refusing to cut into it. Still I like to know where my money's going and I'm sure most people do.

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berryblondeboys Posted 9 Oct 2006 , 9:12pm
post #10 of 19

But, they don't really get charged by the hour. They get charged for the time that the establishment has deemed an appt. time needed to fix the part. So, if something is said to take 2 hours, it might take four if the mechanic is new or having difficulties or it might take 1, but he gets paid for two so he/she doesn't get penalized for being very skilled and quick.

So, a wedding cake for me might take twice as long as a professional, so I can't really charge what it takes ME with lesser experience and inadequate equipment and so on.

With that all said and done, you are right. People don't want to spend the $ because they can get a decent cake (by most people's standards) for much less at the grocery store. I'm actually surprised that so far (a whole whopping two cakes in two weeks (but not advertising yet), I am getting about double what a grocery store cake costs, but that's because one was the 3D train and now someone else wants my space shuttle cake. You just can't find these specialty cakes elsewhere, so they are willing to pay more, but still, I think I'll "earn" like $10 an hour MAX, but I'm not complaining. I'm able to be at home to do it, so that counts for a lot (thank you state of Virginia!!!)

Melissa

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berryblondeboys Posted 9 Oct 2006 , 9:17pm
post #11 of 19

BTW... mechanics, electricians, plumbers and carpenters around this neck of the woods (burbs of DC) get paid about that an hour - some more than that and some less. Where cost of living is high (meaning they have to pay their mortgage/rent too) and where skilled labor is in short supply, the hourly wage SKY ROCKETS. Finding a good skilled laborer (who is legal) is difficult in these parts - and you want to know they are good too and not a scam artist - dicey stuff.

Melissa

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SweetThistleCakes Posted 9 Oct 2006 , 9:51pm
post #12 of 19
Quote:
Originally Posted by lionladydi

Not to get off the subject at hand, vww104, but where do you live that mechanics make $75 an hour. My SIL is an experienced diesel mechanic and certainly doesn't make anything like that. icon_lol.gif

If you are going to compare cake decorators to mechanics, then you need to mark up those ingredients, sweetthistlecakes. They pay one price at the auto parts and add a certain percentage to it before charging you.

Let's face it. We are like all housewives and mothers. We will never be paid what we are really worth!!!! thumbs_up.gificon_lol.gifthumbs_up.gif

Diane




Im not comparing cake decorators to mechanics, I was simply stating that I use the itemized statement method as mechanics do for labor.
My prices are my prices. They are fair. It's more than what the grocery store charges and more than what homebakers here charge. No one here is going to pay $5 a slice. There are no bakeries here as competition and my prices here a just a little bit more than the lowest price in the Metroplex. I charge (normally) $13/hr labor. My scuplted and 3D cakes are more $$ and I get it because people I'm just that good and I wont take less. On my matrix, I did a sample of what others may charge for labor.

We'll never be paid what we're worth? Thats a real nice attitude Diane.

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lionladydi Posted 9 Oct 2006 , 11:32pm
post #13 of 19

Gosh, Sweetthistlecakes, I was only joking. I didn't mean to make you mad. I just don't believe women are ever paid what they are worth. I know you weren't comparing mechanics to decorators. The point I was making is that you SHOULD charge more for the ingredients than you pay at the store. Please accept my apology. I'll try to take everything more seriously from now on.

Diane

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sondrad Posted 9 Oct 2006 , 11:44pm
post #14 of 19

My husband begrudgingly paid for our moderately priced, and excellently made, wedding cake when we were married 2 years ago. The first week of my cake decorating classes he realized that we got more than we paid for.

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vww104 Posted 10 Oct 2006 , 12:16am
post #15 of 19

When making this post I never intended anyone to get upset. It was simply my response to the decoraters who always run up against those that don't truly appreciate their time, labor, expertise and effort. People usually don't question the prices given by mechanics, plumbers, etc. However it appears that cake decoraters are routinely either questioned about their prices or feel guilty charging what their work is really worth.

and yes, in NJ which has an extremely high cost of living (just ask any NJ homeowner what they pay in property taxes) mechanics, plumbers easily get $75+/hour.

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4kids Posted 10 Oct 2006 , 12:29am
post #16 of 19

I think it's important to remember that cake decorating is part art and creativity and part skill. (Equal parts... in my book.) You really do pour a lot of your heart into every cake you make because every cake is unique.

We aren't just charging for a product.... we're charging for our creation.

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berryblondeboys Posted 10 Oct 2006 , 12:47am
post #17 of 19

I totally agree that you don't really realize what you are paying for most of the time for cakes. I mean, if a grocery store can sell a cake for $11, then how can it be so much more? We know it is, but that's because we are in the "know".

Well... as the one lady's husband found out - there are cakes, and then there are cakes. I have made cakes for fun for awhile, but only sporadically and partly because they are SOOOO time consuming and VERY messy! LOL It cost me as much in ingredients/decor as a store cake, but I wanted to do something special for my family.

When my friend asked me to make her wedding cake I accepted but promptly got myself to a Wilton I course and bought all the tools (and boy do having the right tools make a HUGE difference! LOL)

So, I set out to make her cake. Now granted, she has a small kitchenaid mixer (but at least she had that) and a small kitchen and so on, but... It took me HOURS to mix up the frosting for the three layers, then to tint the red to TRUE red. OK, baking, then torting, filling with the raspberries and crumb coating, then final coating, then making the tiers, then actually applying the decor.

It was ONLY then that I realized that this is a LOT of work!!! It's not just three cakes sitting on top of each other - it's four layers of cake resting on another four layers and then another four layers and all of it has to look smooth and tidy and even.... Ugh! LOL I spent probably more than 12 hours making that three tier cake (yes, I'm still a novice and slow) and that's not even factoring in the baking time! After that I TOTALLY understood why they cost upwards of $300 and she said it would have cost her about $500 or more for that cake, so a nice wedding present it was indeed! LOL Of course, I made two other cakes too, so I should factor that into the 12 plus hours - probably more like 15 hours...

Heck, do stay at home moms in general get what they deserve most of the time? Husbands oftentimes think we are getting a free ride - but if they did the math for them to get a personal cook, housekeeper, babysitter, laundry service, and so on, they would be paying FAR more than most of them can afford and I have yet to meet a husband who would prefer to do all that stuff and have the wife go to work - they KNOW deep down that it's thankless work and cake decorating is appreciated, but not understood.

I think I'll do a spreadsheet too - it's a good idea.

Melissa

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vww104 Posted 10 Oct 2006 , 1:06am
post #18 of 19

Melissa, I agree with you 100%. And a spreadsheet is a great idea. I just did one and was surprised by how much the ingredients actually costs me. (I only charge for ingredients). And I get as much as possible at Costco/Walmart/sales etc. in order to cut costs. I'm doing a cake this week at the request of my supervisor for my department. The ingredients alone for an 11x15 all chocolate buttercream with a white chocolate filling with a small amount of decorations is costing about $33! If I hadn't added it all up, I probably would have told my supervisor to just give me $20!!

Let's face it, no one could really afford to pay us what we are worth

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SweetThistleCakes Posted 10 Oct 2006 , 2:26am
post #19 of 19
Quote:
Originally Posted by lionladydi

Gosh, Sweetthistlecakes, I was only joking. I didn't mean to make you mad. I just don't believe women are ever paid what they are worth. I know you weren't comparing mechanics to decorators. The point I was making is that you SHOULD charge more for the ingredients than you pay at the store. Please accept my apology. I'll try to take everything more seriously from now on.

Diane




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