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

post #181 of 407

Good Luck!

post #182 of 407

Cake Boss Software

http://www.cakeboss.com/

post #183 of 407

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

post #184 of 407

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.

post #185 of 407

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.

post #186 of 407

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.

post #187 of 407
Quote:
Originally Posted by costumeczar View Post

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! icon_smile.gif

post #188 of 407

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. 

post #189 of 407
Quote:
Originally Posted by SugarRush239 View Post

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! :)

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post #190 of 407
Quote:
Originally Posted by costumeczar View Post

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." icon_biggrin.gif

Let's eat grandma. Let's eat, grandma. Punctuation saves lives.
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Let's eat grandma. Let's eat, grandma. Punctuation saves lives.
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post #191 of 407
Quote:
Originally Posted by jgifford View Post

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

Follow me on my Twitter handle: @Sugar_Iowa

Or on Facebook: https://www.facebook.com/SugarFineBakedGoodsAndConfections

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Follow me on my Twitter handle: @Sugar_Iowa

Or on Facebook: https://www.facebook.com/SugarFineBakedGoodsAndConfections

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post #192 of 407
I am having a really difficult time with pricing. I had a lady contact me for a wedding cake for her daughter. She wants a 3 tier (one layer each tier) chocolate cane with white buttercream frosting, red roses with vines cascading down the side of the cake, and a long quote written on the side. She asked me about this last Tuesday but said she'd get back to me on when she needs it. This morning she messaged me to say she needs it on Tuesday (today is Friday). I work Saturday and Sunday nights, have a specamial needs child at home and school is out for the Summer. This doesn't leave me much time to get the cake done. I can do it, though, and had planned to go ahead and make the roses today so they can be drying. I could see that she was online when I told her $50 for the cake...she logged off about 5 minutes later and has yet to message me back.
post #193 of 407
Quote:
Originally Posted by PeasNTatersMom View Post

I am having a really difficult time with pricing. I had a lady contact me for a wedding cake for her daughter. She wants a 3 tier (one layer each tier) chocolate cane with white buttercream frosting, red roses with vines cascading down the side of the cake, and a long quote written on the side. She asked me about this last Tuesday but said she'd get back to me on when she needs it. This morning she messaged me to say she needs it on Tuesday (today is Friday). I work Saturday and Sunday nights, have a specamial needs child at home and school is out for the Summer. This doesn't leave me much time to get the cake done. I can do it, though, and had planned to go ahead and make the roses today so they can be drying. I could see that she was online when I told her $50 for the cake...she logged off about 5 minutes later and has yet to message me back.

You are better off letting this one go, you probably underpriced this cake by at least a factor of 3x-5x. Check out the pricing formula link in my signature for an overview of how to price cakes.
post #194 of 407

Definitely don't get upset about losing this $50 order, you are spending that on ingredients, never mind utility costs, overhead for your other expenses and then your time. 

 

Remember that when you price yourself as the cheap cake lady, people expect cheap cakes. 

elsewhere.
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elsewhere.
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post #195 of 407
Quote:
Originally Posted by PeasNTatersMom View Post

I am having a really difficult time with pricing. I had a lady contact me for a wedding cake for her daughter. She wants a 3 tier (one layer each tier) chocolate cane with white buttercream frosting, red roses with vines cascading down the side of the cake, and a long quote written on the side. She asked me about this last Tuesday but said she'd get back to me on when she needs it. This morning she messaged me to say she needs it on Tuesday (today is Friday). I work Saturday and Sunday nights, have a specamial needs child at home and school is out for the Summer. This doesn't leave me much time to get the cake done. I can do it, though, and had planned to go ahead and make the roses today so they can be drying. I could see that she was online when I told her $50 for the cake...she logged off about 5 minutes later and has yet to message me back.

$50 for a 3 tier cake??? Please tell me this is a typo. It doesn't matter where you live..there is no possible way to charge $50 for this cake.

It is so grossly underpriced, it's just not believable. 

 

It seems that just your time is worth much much more than that.  Besides what kind of person gives you such short notice? That's an automatic "NO" for me.  

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