Need help pricing my first cake!

What size cake are you making? Or are you asking what size cake to make, as well?

Is a rum cake served in smaller/larger pieces than a "regular" cake? At 3" tall, it serves 75% of what a 4" high cake would serve, so considering that, I would say a 10" would serve 28, and a 12" would serve 42. Unless the slices are bigger or smaller, of course.

 

About how much will it cost you to make your recipe to fit the pan you decide to use, and how long will it take you to make it, start to finish?

Well it all depends on what size cake to are doing, how much material you use, and how long it will take you to create. 

 

I was always told to take the materials, electric/water use, and hours worked and multiply by 3. Then again, I sometimes wonder if the final price is fair or even worth that much or less. 

 

Example:

 

Cake Mix $5.00

Buttercream $3.50

Fondant $3.00

Oven (I have electric) $12.00

Water $3.00

4 hours Labor @ 3.50 = $14.00

 

Total Cost: $40.50 x (3) = $120.50

 

This would be enough to cover your expense, pay your business, and a little for yourself. 

 

This is just a rough break down. Usually I can make an 10x3 plus 6 cupcakes or a 8x3 and a 6x3. Sometimes I divide the price up, like charging $110 and $10.50 for the cupcakes. 

 

I have seen other people charge by slice, but I sometimes think that charging $4.50 per slice for a 19x3 cake that serves 39 is a little bit high. I have seen people do this and the cake is a simple fondant cake with with a ribbon border and charge $175.00 for a 10x3 cake. 

 

I don't know, maybe it is because I am too considerate, but I don't think people should be taken advantage of. Charge for your work according to expense and time. 

Sorry meant to say 10x3 not 19x3 :)

How much annual overhead do you have, e.g. insurance, license fees, accounting, etc.? You'll need to divide your total annual overhead by how many cakes you see yourself selling in a year to determine the overhead portion of the cost.

Does your state have a cottage food law that allows you to legally sell homemade food? If not you will need to rent a commercial kitchen and factor that into the price as well.

What does the 3.50 figure represent?

 

Chrystyscreations, do you seriously only pay yourself $3.50 an hour ? . 

A  little for your self if right!!! YOU are the one being taken advantage of, if that is seriously all you pay yourself! And the saddest thing, is you are doing it to yourself! A cake is a luxury, no one HAS to have one, so you are not taking advantage by charging a living wage for yourself, They can say no, it's not like car insurance!! You could double your income if you went and got a job at McDonald's!

Darn tootin'. Comments like *a little for myself* *don't want to overcharge and take advantage* chap my @$$.

 

Grow a pair, stop undercharging, stop playing 'business', and for gd's sake STOP undercutting real businesses.

 

$3.50/hour. You.must.be.joking. I have no idea what minimun wage is, but it can't possibly be that low.

 

Blegh - now I'm angry!

Devil's advocate, she did also then triple that number to get the price.

Exactly, which means the effective hourly rate is $10.50. That's why I asked for clarification on the 3.50 figure before jumping to conclusions.

If you actually read the rest of her post, her pricing examples are reasonable although the process to derive the prices may not be the most accurate.

Okay. For all those ranting about me using this as an "example" lets get one thing straight. Home based is home based. If you are talking about a company that rents a locations, well obviously the rent would be included. But I am only home based. And then again, I am earning $40.50 for myself. If we are to use this example. I was looking at it as charging hourly rate at $3.50 like waierss are paid for their work. I look at the extra $26.50 as a tip in this example.

 

now going back to mimi1144 before everyone went of ranti about my post, how much would you charge for her cake?

Well that "tip" thing only works IF you don't include that $26.50 in your price for the client and *hope* they come up with even giving you a tip, let alond a $26.50 tip.  Gratuity, by definition, is something given without claim or demand.  It is not added in the price of your cake.  It's ok to have that $26.50 included in your wages.  It's not a tip though.