hi everybody!!!

Today I got a call from a famous bakery in town (new mexico), they hired me as baker and cake decorator! 

So I went this morning to check few things out.. it's a mess, a big, fat mess!

I realized they don't know how to price a cake: they use half sheet and full sheet cake price (???) and convert it into fondant round cake.. well it's just complicated and it doesn't make any sense!

they also don't know how many servings come out from a certain size of pan, they are totally undercharging or giving away a bunch a cake!

The new owner asked me to fix this mess, setting a price range, figure out the servings, talk to the costumers, write a contract, bake and decorate!

It's like having my own business, isn't it?

BUT I'm afraid that might be too much for me to handle, so can you guys help me to figure it out where to start? maybe sharing a contract I can use or telling me how do you set the price for the extra decorations?

Like flowers, bows, characters, little animals and so on?

any tip of any kind would be great! thank you!

I've searched the forums for contracts before and had luck, I would suggest that. 

Have you price out recipes before? And I mean exactly, not by guessing but my knowing the exact cost of a teaspoon of baking powder, an ounce of butter, a cup of flour, etc? 

nope, never.. I also just moved to US from Italy few months ago and I don't really know the prices here..

but also how can I know how much THEY pay ingredients??  

AThis is the job of a business consultant, not a baker/decorator. If you will be baking, decorating, and fixing their business, I would ask for more compensation...for example your business consulting could be on a per-hour basis (over and above your baking/decorating work and at a higher wage) and/or you could become a partner in the company (if you have faith it will survive).

Check out the pricing formula link in my signature below for help on pricing. One of the foundations for any successful business is a robust accounting system, so make sure it is set up with a correct chart of accounts and both expenses and revenue are being recorded correctly.

I'm not sure how much of a business background you have, but if you aren't confident you can do this job right I would tell your employers so they can hire someone with the correct expertise.

AThis is not work you do for hourly bakery staff pay, this is a management position at the very least and I don't recommend you even consider taking this on unless you are being compensated appropriately. If you are going to be increasing their profits substantially you should be receiving some of the benefit of that.

I agree with everyone above, that if you don't know what you are doing, don't do it. This business is already struggling, don't drive them into the ground.

Though I also believe that people can be perfectly successful in a position where they don't have experience in every duty asked of them, you have to start somewhere. 

You need to seriously do some research on food costing. It is a huge deal that you know what you are paying for ingredients. You need to find out who the vendors are, and you need to find out the packaging sizes of what you are buying and the cost. You then do the math.

To be honest with you, this is a huge process.You better be good at math. In culinary school at Johnson and Wales University, this was the most dreaded class of all of the students. I excelled as I really enjoy math, so if you enjoy math like me, this will be fun for you to tackle. If you don't like math, back out now. You are messing with someone's livelihood. 

AWhen you interviewed for the job, did you say you were capable of all this?

during the interview they didint say anything about "pricing the cake", I assumed they already did it on their own.. We spoke just about talking to customers, which is totally my thing. 

I can do the math, it's pretty easy and I have a master degree in architecture, so I am totally comfy with math. But also I don't think it's should be my job, so I already mailed the pricing guide to the manager!

oh and the business is not struggling at all, they just want to fix what they do wrong! 

If they broke it, they need to fix it themselves because they aren't likely to appreciate your help, even if they've asked for your help.

If they want to hire someone off the street to bake, decorate, talk to customers, price their cakes and set up their contracts, more power to them . . . however they can't go complaining when it all goes to hell because they are clueless.

Best of luck to the OP, but it usually doesn't go well when you work for someone who doesn't know the BASICS of the business they are already participating in.  There is a disconnect there that I guarantee will carry over into other areas of your employment. :)

Liz