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I need some help on prices please....

post #1 of 7
5/12/12 at 8:39pm
Thread Starter 
I have started making cakes within this past year... I took a few basic Wilton courses and the rest is self taught!! I don't know what to charge so if anyone out there can help me through this I would REALLY appreciate it!! I make a lot of stacked cakes with decorations that take some time to do. Some people tell me to charge a whole lot and others tell me not too. I have made cakes that take hours to make, I don't want to overcharge, but don't want to short change myself for all my hard work. So, what would you charge for a stacked cake with fondant figures on it, like a lion, elephant, giraffe and zebra?? What would you charge for a full sheet, 1/2 sheet, 1/4 sheet. What to charge for cupcakes is another question?? Please someone help me through this so I can give prices to people when they ask and not go ummm, not sure yet, it just depends on what you want on there... Thanks for taking the time to read my note and helping me out!! Have a blessed day!
~ Thanks, Beth (HAPPY CAKES!!) icon_biggrin.gif
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post #2 of 7
5/12/12 at 8:44pm
1. Find out if you can legally sell cakes in your area from your home kitchen or if you will need a rented commercial kitchen
2. Put together a business plan including what type of products you will make, who you will sell them to, and about how much it will cost to make them (including ingredients, labor, and overhead)
3. Add a profit margin to get your minimum sale price, then check that with market prices to see if you need to lower your price (which would require cutting costs) or increase your price
4. Put together a web site and implement advertising based on the marketing strategy in your business plan
.
The Bakery Business Perspective
An experimental blog with new content every Tuesday!

Recent Articles: The Magic Pricing Formula • Copyright Law
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The Bakery Business Perspective
An experimental blog with new content every Tuesday!

Recent Articles: The Magic Pricing Formula • Copyright Law
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post #3 of 7
5/13/12 at 4:06am
Quote:
Originally Posted by beth78148

Please someone help me through this so I can give prices to people when they ask and not go ummm, not sure yet, it just depends on what you want on there...


Greetings Beth! Welcome to the world of business. In addition to Jason's advice, I'd also add that for the types of individualized products you want to make, you will always need to say "it just depends on what you want on there."
website www.BakingFix.com
blog www.BakingFix.com/thefix
Facebook http://www.facebook.com/MimiFix
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website www.BakingFix.com
blog www.BakingFix.com/thefix
Facebook http://www.facebook.com/MimiFix
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post #4 of 7
5/13/12 at 4:51am
I agree, the pricing issue will become crystal clear after you thoroughly work up your business plan, investigate your suppliers and work out to a tee what your costs of production are.

If you are finding the business side of things a bit daunting I would recommend a course on basic commerce and small business management, plus additional education in running a food business (of course in addition to acquiring all the legal permits etc), especially if you are finding it difficult to grasp the concept of working out costs of production (all of them, including your own wage), determining profit margin, working out a business plan etc. The short answer is that there is no short answer. Sorry!

It's exciting beginning a new cake business, but as long as you remember it's 10% CAKE and 90% BUSINESS.

Good luck!
Life's too short to make cake pops.
___________________________________
www.sweetperfection.com.au
www.facebook.com/sweetperfectioncakes (come visit sometime!)
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Life's too short to make cake pops.
___________________________________
www.sweetperfection.com.au
www.facebook.com/sweetperfectioncakes (come visit sometime!)
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post #5 of 7
5/13/12 at 9:15am
Quote:
Originally Posted by Evoir

It's exciting beginning a new cake business, but as long as you remember it's 10% CAKE and 90% BUSINESS.

Good luck!



I looooved to bake. And then I found myself an unemployed single parent. I decided it would be easy to make money doing what I loved. It took me a couple of months to realize that baking was only a small part of running the darn business.

CC posters are lucky to have a forum where they can ask questions and learn the how-to's. One of the most important things I've learned is to price so that I'm not paying people to be my customers. You absolutely must charge enough to cover all of your expenses, overhead, and a profit for your work. Otherwise you're not running a business but enjoying (and sometimes not enjoying) an expensive hobby. A business plan is important; people at SCORE (Service Corps of Retired Executives) can help you and it's a free service. http://www.score.org/
website www.BakingFix.com
blog www.BakingFix.com/thefix
Facebook http://www.facebook.com/MimiFix
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website www.BakingFix.com
blog www.BakingFix.com/thefix
Facebook http://www.facebook.com/MimiFix
Reply
post #6 of 7
5/13/12 at 2:17pm
Check out the link in my signature for how to price cakes, I think it will answer a lot of your questions.
How to Price Your Cakes
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How to Price Your Cakes
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post #7 of 7
5/14/12 at 7:40pm
Thread Starter 
Thank you for all your advice!! It's a lot to think about! I don't want to undercut myself! It is a lot of work and have been getting paid way less than what I should have been getting paid!! This will help me figure out a plan to make sure I make a profit and continue building my business!
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