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Advise on pricing cake decorations, help pls!

post #1 of 11
Thread Starter 
Hello,

I am planning to set up in business soon and am struggling with pricing my cakes/cake decorations. I am doing an 8 inch square chocolate jungle picnic cake which features 8 fondant animals and a variety of food on a blanket with buttercream grass all over the cake and board with a piping gel pond feature.

My cake is priced at 40£ (which includes the cake mix from stratch, filling, packing etc) but not sure how to price the fondant animals and pond etc?

Would greatly appreciate any advise on how to price the following, which will be add ons to my basic cake price -
Fondant animals, human figures?
Wire decorations?
Pond (piping gel) features
Flowers - roses, tiger lilies, calla lilies, orchids

Can u guve me an idea of how you price such cakes? Any help wud be much appreciated!

Thankyou
post #2 of 11
How much will the ingredients cost for the cake? How many hours do you think it will take to complete (including prep, baking, decorating, and cleanup)? How much is your annual overhead (insurance, license fees, accounting, advertising, utilities, etc.)?
post #3 of 11
For flowers, perhaps you could check prices online to charge at least what it would cost to purchase and add an upcharge for retail profit, potential shipping, etc.
HOW TO:
Make tip #127D (giant rose tip) Ruffle cake,
Write with icing,
Make buttercream roses on a stick:
http://s984.photobucket.com/albums/ae322/Unlimited1cakes/
Reply
HOW TO:
Make tip #127D (giant rose tip) Ruffle cake,
Write with icing,
Make buttercream roses on a stick:
http://s984.photobucket.com/albums/ae322/Unlimited1cakes/
Reply
post #4 of 11
Thread Starter 
Hi Jason
25£ for the costs of the chocolate cake, filling, cake board/box, ribbon, fondant covering. Annual cost of insurance is £16 (basic insurance for the first year...the other things i am in the process of getting it together)...think it will take me 15 hours of work from start to finish...

My thoughts are - a 40£ cake covers the ings costs, covering of the cake with fondant, writing on the cake, covered board with ribbon and light basic decorations..i.e.plunger cutter decorations or small and quick figurines. From here on if the customer wants anything more it should be charged as extras like animal models, human figurines, wire decorations, pond features etc...but not sure how much? I just dont want the cake price to scare the customer off neither do i want to be underpaid - thus my dilemma!
post #5 of 11
Quote:
Originally Posted by Jazzbythebay

Hi Jason
25� for the costs of the chocolate cake, filling, cake board/box, ribbon, fondant covering. Annual cost of insurance is �16 (basic insurance for the first year...the other things i am in the process of getting it together)...think it will take me 15 hours of work from start to finish..


£16 seems very low for a year of insurance coverage, we'll assume £5 per order in allocated overhead. Assume an hourly wage of £7, and your labor cost is £105. £105 + £5 + £25 = £135, that's your total cost. Your markup will vary depending on local market conditions (your business plan should help you here) but it is usually 15-45%, so you are looking at a price range of £155 - £195.
post #6 of 11
Thread Starter 
Thanks Jason but a price range of £155 - £195 seems to be too much for my area though...

Does everyone calculate in this manner or are there other ways to do it too...? any other ideas anyone?
post #7 of 11
Quote:
Originally Posted by Jazzbythebay

Thanks Jason but a price range of £155 - £195 seems to be too much for my area though...

Does everyone calculate in this manner or are there other ways to do it too...? any other ideas anyone?



Work faster or make simpler or less decorations if client can't afford to pay the final price. Otherwise you won't be paid for your labor. I wouldn't spend more than 3 hours to decorate 8'' cake (and I charge $40/hour for labor but it's very individual, the living cost, rent... - let's say everything - in Switzerland is very very high).
Paula
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Paula
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post #8 of 11
Thread Starter 
Thank you all and Pane l7124, this makes sense!
post #9 of 11
post #10 of 11
Thread Starter 
imagenthatnj - thanks a ton, appreciate this so much!
post #11 of 11
You're very welcome. Good luck!
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