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Help With Pricing These Cakes

post #1 of 13
11/25/12 at 12:39am
Thread Starter 

I've just recently started in the field and have some successful cakes, however I don't know if I've been successful with the pricing.  I'm starting to see that this may be the most difficult items in starting up this business.

 

I'm just curious as to what the cake community here on cakecentral.com would have charged for these cakes.  The round cake was a 10 and 6 in round covered in fondant and the square was a 10 and 5 inch square covered in buttercream.  I'm in California and didn't have to drive more than 5 miles to deliver these.

 

I'd really appreciate some feedback (and suggestions if you have them).  I'm starting to fall in love with this field because I see the absolute joy on the customers faces.  I'm addicted :-)

 

Thanks again,

Nicole

 

700

 

700

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post #2 of 13
11/25/12 at 8:45am
How long did the cakes take you to make, how much did the ingredients cost, and how much do you pay for your commercial kitchen?
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post #3 of 13
11/26/12 at 12:24am
Thread Starter 
They both took about 5 hours to make. The ingredient costs were about 50 for the yellow cake and 70 for the black and pink. I used my own kitchen.
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post #4 of 13
11/26/12 at 1:11am
By, "I used my own kitchen" do you mean your home kitchen? Or do you own a licensed commercial kitchen? Please correct me if I'm wrong, but I believe that CA does not permit foods to be sold to the public if they are prepared in a home kitchen. If that's the case, then the only possible price for your cakes is $0.
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Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
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post #5 of 13
11/26/12 at 1:24pm

CA has a cottage food law, don't they?  I just recently looked because we are petitioning for it in WI, and saw CA on the list. I was glad because I may be moving there. :)

~ Sherri
http://sherriscakes.weebly.com/
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~ Sherri
http://sherriscakes.weebly.com/
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post #6 of 13
11/26/12 at 1:39pm

Maybe I had that wrong.  I just searched it and found a site saying WI has a cottage food law, which in fact we DO NOT. http://homebasedbaking.com/knowledgebase/rules-regulations/cottage-food-law-states/

 

Is there an official way to find out which states have cottage food laws?  My info about CA must have been wrong. Definitely do not sell cakes unless you are within the law, to protect YOURSELF and the industry.  If something goes wrong, what if you get sued?

~ Sherri
http://sherriscakes.weebly.com/
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~ Sherri
http://sherriscakes.weebly.com/
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post #7 of 13
11/26/12 at 1:44pm

See , here's just what I mean...  The link above says CA doesn't... this link says CA does: http://cottagefoodlaws.com/state-regulations/cottage-food-law-states/

 

Which is it?

~ Sherri
http://sherriscakes.weebly.com/
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~ Sherri
http://sherriscakes.weebly.com/
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post #8 of 13
11/26/12 at 1:57pm

CA recently passed the cottage food bill into law, but it doesn't go into effect until January 2013.  And it's looking like a whole bunch of counties are unprepared for it, so  it may be even longer than that before it is actually up and running in some areas.

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post #9 of 13
11/26/12 at 9:31pm
Thread Starter 
Quote:
Originally Posted by leah_s View Post

By, "I used my own kitchen" do you mean your home kitchen? Or do you own a licensed commercial kitchen? Please correct me if I'm wrong, but I believe that CA does not permit foods to be sold to the public if they are prepared in a home kitchen. If that's the case, then the only possible price for your cakes is $0.

 

Ok, maybe this is the wrong place to seek advice and help.  I feel that instead of getting help, I'm getting put down.  Not that I need to justify this, but I made these cakes for family members, so I didn't charge anything for these cakes.  Last time I looked, baking for family members wasn't against the law or any health codes.  Also, my starting in the field consists of taking decorating classes, practicing what I've learned, working in a bakery part-time and getting my ducks in a row.  I didn't realize I needed to provide this much personal background information in order to get some advice.  I am very aware of the rules and laws surrounding safe food handling.  Yes, California did pass the California Homemade Food Act that goes into affect in 2013, and I'll be one of the first to be a part of that.

 

I really would appreciate some feedback on my original question if at all possible.  If that isn't possible, please let me know and I'll pull my posting and know not to ask any additional questions.

 

Thank you.

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post #10 of 13
11/26/12 at 9:44pm

Stop whinging and feeling sorry for yourself because you didn't get the answers you were looking for. Time to put on your big girl panties!

 

There are posts here every day about pricing, and they usually read like this:

 

-How much should I charge for this cake?

-How much would you charge for this cake?

 

Usually accompanied by a photo and no other information.

 

Providing enough background info is vital if one wants help from others about pricing. My price isn't going to be the same as your price, or his price, or her price.

 

Seriously though, what answers did you expect? You never mentioned in your first post that you don't make/sell cakes to the public, that these particular cakes were free for family members, that you are aware of the CFL, are planning a future (legal) business, and that you know you can't legally sell food made in your home.

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Hero of the month:   Amina Tyler

 

 

The Christian right is neither.

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post #11 of 13
11/26/12 at 9:46pm
Quote:
Originally Posted by mrsgreshcakes View Post

They both took about 5 hours to make. The ingredient costs were about 50 for the yellow cake and 70 for the black and pink. I used my own kitchen.
If you assume an extra hour for slack and $15/hour your labor cost would be $90. Estimating one order per week and $1000 in annual overhead you have $20 in overhead costs per cake. So for the yellow cake your cost would be $160, and depending on your local market the price would be in the $185 - $230 range.

Your comment that you don't know if you've been successful with pricing suggests that you have sold cakes before. If you have your ducks in a row, it's generally a good idea with these types of questions to include a little background about what you plan to do (including your estimated sales volume and annual overhead) to help focus the thread on your pricing questions and demonstrate that you have a plan in place to sell legally, since many people do not.

You are correct that baking cakes as gifts for friends and family is not against any current health codes in CA, but Leah is also correct that the price for said cakes should be $0.
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My experimental blog: The Bakery Business Perspective
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My experimental blog: The Bakery Business Perspective
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post #12 of 13
11/26/12 at 10:02pm
Thread Starter 

Jason,

 

Thanks all for the information.  I'll keep in mind the overhead figures if I decide to start charging.  Rental kitchens in my area run about $375 a month plus a yearly membership fee of $500.  Even with the new law, with these cakes, my kitchen was taken over, so I might be using a rental kitchen simply for the work space alone.  Right now, I have a full time job and am finishing a masters degree, so this is starting out as just a hobby, but I thought "what the heck" to see what pricing would be.  I worked up some figures myself and wanted to see how off I would be.  I wasn't too far off.  

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post #13 of 13
11/26/12 at 10:14pm
Thread Starter 
Quote:
Originally Posted by Godot View Post

Stop whinging and feeling sorry for yourself because you didn't get the answers you were looking for. Time to put on your big girl panties!

 

 

 

Godot,

 

Hmmm.... big girl panties.  Could make for an interesting cake idea.  Thanks!!!!!!

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