This Cake Costed Me..

Business By TheItalianBaker Updated 4 Sep 2012 , 5:07pm by TheItalianBaker

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TheItalianBaker Posted 4 Sep 2012 , 4:29pm
post #1 of 5

about 25 (around $30), needed 5h to make the characters, the rainbow, flowers, number and letters, and other 4h to bake, make the pastry cream, fill the cake, cover with fondant and decorate it.
It's a chocolate cake with nutella pastry cream, 8 inch, 3 layers of cake 2 of filling. The characters are pretty big, more than 2 pounds all 9 together.
So how much would YOU purchase for that cake?

(clink on the link to see the cake)
http://cakecentral.com/gallery/2396414/barbapap-cake

I purchased 70, about 87$

4 replies
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jason_kraft Posted 4 Sep 2012 , 4:49pm
post #2 of 5

If ingredients are $30, kitchen rent is $15, wages are $15, allocated overhead is $20, and profit margin is 20%, we would charge ($30 + (9 * $30) + $20) * 1.2 = $384. Chances are the market would not support this price, in which case you would drastically simplify the design or try to improve your efficiency (or both).

At a price of $87, assuming no kitchen rent and half the overhead, you made about $5/hour with zero profit.

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TheItalianBaker Posted 4 Sep 2012 , 4:54pm
post #3 of 5

i'm a homebased baker so no kitchen rent, no salary and so on.

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jason_kraft Posted 4 Sep 2012 , 4:57pm
post #4 of 5
Quote:
Originally Posted by TheItalianBaker

i'm a homebased baker so no kitchen rent, no salary and so on.



When costing your products you still need to take into account the market value of your kitchen space, otherwise you are devaluing your entire local market.

I'm also not sure what you mean by "no salary", are you just making cakes for fun?

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TheItalianBaker Posted 4 Sep 2012 , 5:07pm
post #5 of 5

no I mean i dont pay any salary to anyone but at the same time i've never thought about my salary/h

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