Originally Posted by howsweet
How can anyone make a living selling custom cake for $1.50 per serving? Do they work a lot faster in those areas? Less friction in the air or something? Are ingredients a fourth of the price? I'd love to know how that works.
I just looked at the price list form the restaurant supply I buy a lot of my ingredients from, so they are cheaper than grocery stores.
For a 3 tier cake for 100 people, using a super basic marshmallow fondant, shortening frosting, straight cake mixes with oil/eggs/water, not milk or any other add-ins, cake boards, supports and a half price drum form michaels, (lol), it would cost me $66.
That leaves $84 to cover any extra decorations, electric, insurance, licensing, gas, water, advertising, work phone, website, etc etc etc, never mind an hourly wage.
I have a friend who lives in rural West Virginia, and every time I visit her I am amazed by how low the cost of living is compared to where I am from, but even there, there's no way $1.50 would make her any money.
I'm not trying to sound like a bully to anyone who charges that, but you are coming away with about $20 a cake, if a cake only took an hour start to finish, that would be fine. If you want to sell, and make a viable busniess for yourself, you have to sit down and work all those factors through.