How much do people think a cake costs to make??? - Page 13

Good Luck!

Cake Boss Software

http://www.cakeboss.com/

With me just starting my bussiness all your thoughts really helped me look at starting this the right way by using a software for prices and such. I make them for family and it costs me quite a bit and I get frusterated they dont always appreciate the amount of time I put into my designs especially after working a few days on it! I think its the individuals that do charge next to nothing not making money on it, making it hard for the ones that really want to take there bussiness to a higher level. Thanks so much

Reading threads like this I am so glad that I do not do cakes for a living.  I have often been asked why I don't, by people who have seen my cakes, and I explain how too many people sell themselves too cheap and make it impossible for other people who want to make a reasonable living.  Why would I go to all the stress and risk burn out of a wonderful hobby for a pittance when I can earn a stress free basic wage at the supermarket for a lot more.

What people really need to realise, if they are starting a business, is that a custom cake is a luxury item.  If people can't afford it then they should not get it.  And if they really want it then they should have to pay, and people asking a pittance only undervalue the whole market.  Other businesses do not operate this way, so why should the cake industry.

Good luck to those earning thousands.  I for one am pleased to see some peoples artistic skills being rewarded. Just because it is edible does not mean it is less valuable artistically than other forms of art.

As long as there are people and stores who will charge $1 a serving, there will be people who think that's the normal charge. Custom cakes are a luxury item, nobody needs one, they want one. Honestly, most people in the world have never shopped for a custom cake, they go to Walmart and are happy with that. If someone questions your price just tell them that they're not just paying for the cake, they're also paying for your skill and experience. If they don't want to do that then let them go somewhere else to get their cake. The world keeps turning and life goes on.

Here's my blog entry for today: http://www.acaketorememberva.blogspot.com/2013/03/another-grocery-store-wedding-cake.html

and an old classic. http://acaketorememberva.blogspot.com/search?q=it+isn%27t+just+flour+and+sugar

Feel free to show them to clients when they ask about why your cakes cost so much.

Quote:

Originally Posted by costumeczar 

Here's my blog entry for today: http://www.acaketorememberva.blogspot.com/2013/03/another-grocery-store-wedding-cake.html

 

and an old classic. http://acaketorememberva.blogspot.com/search?q=it+isn%27t+just+flour+and+sugar

 

Feel free to show them to clients when they ask about why your cakes cost so much.

Great Blog Costumeczar, I have only ever baked the fruit layers of a wedding cake, there's no way I would feel up to completely decorating one as well!

I know this is an old post. But my mom and I recently started a small at home business just to try it out. My mom finds baking relaxing and I find decorating very relaxing. I have a full time job so the cake stuff isn't something I depend on. However, I truly hate when people complain about prices. We make everything from scratch (including the fondant). I think the $125-175 for the 3 tier cake is very cheap! I usually charge $150 for a 2 tier 8&6 inch cake. Sometimes people think this is over priced but I usually don't even make half profit. By the time you purchase ingredients, your electricity, gas it takes to drive everywhere, and not to mention the time it takes to make a cake...you're pretty much making about 25%. I used to charge less but I wasn't even matching what I spent, sometimes I was spending more than what I charged. Of course I was new and was totally unaware of how much it really took to make a cake. Anyways... my point is, don't be afraid to charge! If they don't like it then they can go somewhere else. I hate losing customers due to pricing...but it's pointless to spend all that time making something and not gain any profit from it. You might as well give away the cake at that point. 

Quote:

Originally Posted by SugarRush239 

I know this is an old post. But my mom and I recently started a small at home business just to try it out. My mom finds baking relaxing and I find decorating very relaxing. I have a full time job so the cake stuff isn't something I depend on. However, I truly hate when people complain about prices. We make everything from scratch (including the fondant). I think the $125-175 for the 3 tier cake is very cheap! I usually charge $150 for a 2 tier 8&6 inch cake. Sometimes people think this is over priced but I usually don't even make half profit. By the time you purchase ingredients, your electricity, gas it takes to drive everywhere, and not to mention the time it takes to make a cake...you're pretty much making about 25%. I used to charge less but I wasn't even matching what I spent, sometimes I was spending more than what I charged. Of course I was new and was totally unaware of how much it really took to make a cake. Anyways... my point is, don't be afraid to charge! If they don't like it then they can go somewhere else. I hate losing customers due to pricing...but it's pointless to spend all that time making something and not gain any profit from it. You might as well give away the cake at that point. 

Totally agree. I figure it as time I could've been spending with my family. I love cakes, but if someone wants me to take time and energy away from my family, they need to pay me (or them) for it! :)

Quote:

Originally Posted by costumeczar 

Here's my blog entry for today: http://www.acaketorememberva.blogspot.com/2013/03/another-grocery-store-wedding-cake.html

 

and an old classic. http://acaketorememberva.blogspot.com/search?q=it+isn%27t+just+flour+and+sugar

 

Feel free to show them to clients when they ask about why your cakes cost so much.

Loved your blog! Especially "flour and water makes glue, not cake."

Quote:

Originally Posted by jgifford 

I know this is probably going to offend several, if not many, people but I just don't understand the problems with pricing.  And these threads pop up every single day. How can you even contemplate starting a business without knowing ahead of time what you're going to charge for your product?  Does a grocery store or hardware store open without all prices firmly in place and even marked on the shelves?  Does a car dealership open without stickers on every window?

 

How can you even hope to have a profitable business when you have no idea what it's going to cost you to produce your cakes, cupcakes, cookies, etc., and how many you have to sell to reach your break even point?  Are you even planning on having a profitable business? 

 

There's more to it than "everybody loves my cakes and so many people are telling me I should start my own business".  If you don't take care of the business side of it, you're not going to have a business for long.

This.  And on top of this, the time it takes you make and decorate a cake is an expense.  It doesn't come out of overhead, and it isn't profit.  Profit is what is left after you have paid for supplies, labor and overhead.  It can be used to reinvest in your business, or to give yourself a bonus.  It is mind boggling how many people go into business without the most basic math needed to run a business.

Liz