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Markup and Food Costs

post #1 of 10
Thread Starter 

Was just wondering how much everyone marks up their prices. I use the Cake Boss software and it marks up about 3 times...

post #2 of 10

I mark up 2.5 right now because of my area. It is still a nice profit for me.

post #3 of 10
Markup over your true cost (including ingredients, labor, and per-order overhead) is typically in the 15-45% range. Pricing based on 3x ingredients only is not accurate since it does not take into account the labor required to execute a design, which can vary quite a bit.
post #4 of 10

staceface, if you don't mind, i'd like to highjack your thread momentarily to complement you on that cake in your avatar

 

it is striking!

 

and a question, please

 

how did you do the cross hatch/latticy/web looking dealios under the killer flower?

 

if you posted a full picture of the cake please show me how to view it.

 

thanks

 

kate

favorite slogan "you sweet talker, Betty Crocker"

 

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favorite slogan "you sweet talker, Betty Crocker"

 

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post #5 of 10
Quote:
Originally Posted by StaceFaceCakes View Post

Was just wondering how much everyone marks up their prices. I use the Cake Boss software and it marks up about 3 times...


That's interesting because the CakeBoss software "how to price your cakes" article says: 

question:  I have read that a good way to price cakes is to charge for the cost of ingredients times 2 (or 3).

answer:  We firmly believe that the "ingredients times 2 or 3" method of pricing is arbitrary and not rooted in any kind of business theory.  In our experience, this method results in grossly underpricing your product.  The cost of the cake lies not in the ingredients, but in the labor invested."

http://www.cakeboss.com/PricingGuideline.aspx

 

Maybe you could ask the CakeBoss software folks?

post #6 of 10
Thread Starter 

Thanks guys! Just wanted to chat about this a little. The software does account for labor. I've been giving myself $15 an hour, which seems reasonable for my area, and taking into account overhead. With all the taken into consideration, it usually coming out to 3 times ingredients...so just checking with you all to make sure this software is a good way to go! Thanks!

post #7 of 10
Thread Starter 

K8memphis. Thanks for the kind words! I used the smallest wilton tip....maybe a 3 or a 1? sorry I tried to look for it, but couldn't find it....but it's royal icing and that tip and alot of patience! It's super easy but looks amazing. I grossly underestimated how long it would take to pipe over the cricut cut outs on this one...

*

post #8 of 10
Thread Starter 

This is the first time I experimented with royal icing piping....Next time I might do more detail and hopefully be a little cleaner on my lines.

post #9 of 10

you have a great eye for design

 

lovely lovely cake!

favorite slogan "you sweet talker, Betty Crocker"

 

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favorite slogan "you sweet talker, Betty Crocker"

 

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post #10 of 10

Thanks for the additional info, very much appreciated.  Beautiful cake!!!

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