Originally Posted by GGx1
I actually was wondering how many of you price your cakes based on cost & time OR based on # of servings????
Your cost/time/profit become your price per serving.
Im just grabbing numbers out of the air here
Lets say your cost for an 8in round cake which serves 24 is $10. And it takes you 6 hours at a $10 an hour to do it.
When you divide $70 by 24 (number of servings) you know you need to charge at least $2.92 to cover your cost and time.
If you charge $3.50 per serving, then you will make a $14 profit on the cake.
If you charge $3.75 per serving, then it is a $20 profit.
You dont actually have to price out every cake, you just need some base numbers to work with. If you do mostly tiered cakes, then I would figure the cost for a 6 and 8 or a 6 and 10 and then use those numbers to figure your price per serving. That way the pillars/dowels are built into the price. So then if you do a cake that is a single tier then you just make a little extra profit on it.
Another thing to remember, when figuring your cost do not use sale or discounted prices. It is nice to buy things on sale but sometimes you may not be able to, so then you are shorting yourself. And if you do get things on sale, again that is just extra profit for you.
They want Ace of Cakes @ WalMart pricing.
Yes people do. The key there is to not give in to it. How much is your free time worth to you? If you arent doing a cake for someone that doesnt want to pay what your time is worth, what else could you be doing? To me I would much rather be doing something I want to be doing, than doing a favor for someone that cant understand that my time and talent is worth more than $20 for a huge elaborate cake.