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How is it physically possible to charge such a low price?? Help Please - Page 2

post #16 of 19
Quote:
Originally Posted by scrumdiddlycakes View Post

Quote:
Originally Posted by howsweet View Post

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.

LOL at less friction in the air!

 

Man, $20 is a lot of money, why you dissing it? lol I know a lot of these people have no idea what it is actually costing them to make these cakes because they mix supplies with regular grocery shopping, and don't keep anything separate, so they feel like they are making money when they get the $144 check. Of course, there are also people who buy the stuff with foodstamps, so they are actually making quite a bit of money, minus the card board and tin foil. And I'm not hating, 15% of the population is on them, you know it is being done.

Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
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post #17 of 19

I'm not 100% sure  but from what i do know the prices of ingredients are a little lower. i hate to say this i love Missouri but this is a low income state so that being said i think that's probably why
 

post #18 of 19

I'm so sorry if i sounded like everyone here charges 1.50 serving i just meant that is the low end they do go up its just diff here and i will say yes i charge more because what i do is more expensive fillings and such and no i do not pay with food stamps and yes i keep my spending separate from my regular grocery this isn't my first business i was just simply saying instead of hating the person charging less consider that there may be other reasons that the person is not that the person is just cheap or bad at what they do. i apologize if i have confused or upset anyone.
 

post #19 of 19
Quote:
Originally Posted by ellavanilla View Post

i think we should encourage everyone to charge a base of $3/serving for tiered cakes. As long as fuel is over $3/gallon and butter $3/lb, it only makes sense. If your skills don't equal $3/serve then maybe it's back to the drawing board until they do.

Agreed.

If it don't make dollars, then it doesn't make sense ;)

www.morganscakery.com

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If it don't make dollars, then it doesn't make sense ;)

www.morganscakery.com

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