I don't have a licensed business but I do A LOT of highly decorated cakes on the side. I have my very first bridal order and I need to quote a price. My prices for a birthday cake are well below what a bakery would charge so I have no idea where to start. The bride wants a 3 layer cake covered in the very popular buttercream roses. Not your traditional rose, the swirl rose made with M1 tip. Super easy. However, the groom's cake will be a life-sized 3D duck sitting on top of a log. That will consist of carving a several layer cake, covering in ganache/fondant and probably painting and blending feathers. (for a duck hunter). What in the world kind of price do I put on that?!
Thanks!
The only way to figure out your price is to add up ingredients and supplies, time spent and overhead, such as legal expenses, utilities, gas, etc.
Nobody here can give you a price, everyone's costs are different, you would get people saying anything from $150 to $1500.
I'm sure others will say it, but what you are doing is illegal. You should not be selling without a properly licensed business, you could get in a lot of trouble.
Also, undercutting local businesses is not a very nice thing to do.
It's a hobby that has taken off big time. People love the cakes and I do it to make them happy. In no way am I trying to 'undercut' a bakery. I live in the country and it takes an hour to get to a good bakery. People don't want to drive that. I am in NO way running a business without a license (I work a 40 hour/week day job to pay my bills). My cakes are for friends and family, no advertising. Thank for your advice.
I have property in Central (minutes from Pride)..My address is actually "Pride".....There is a good bakery in Central (Sweet Impressions)...another one opening in a couple weeks (Dawn's Sweet Tooth). A short drive to many good bakeries in Baton Rouge. Why do you say an hour go get to a good bakery?
AIf you are not running a business then price should not be a concern. I would ask the recipient of the cake what they would be willing to pay for it, and use that as your price.
You state you work a 40 hour a week job to pay bills and you do not advertise, it is all word of mouth so you are not conducting a business. The definition of a business is receiving something of monetary value for services, whether it be money, or barter. So you are conducting a business. Also, "My prices for a birthday cake are well below what a bakery would charge so I have no idea where to start", your words, so you are selling for under what others charge and therefore hurting a licensed entity, whether it is a licensed or cottage food act business.
This said, the way to get your selling price is to add all that scrumdiddlycakes has stated. Maybe you should see what you need to do to become legal and then you could raise your prices and get more money for your "high end" cakes.
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Thanks for all your advice!!! It surely seems that this would be more trouble than it's worth to do the cakes. I'll continue to bake for my kids, parents and siblings. Thanks!!!
I'm probably the only one on here that doesn't have an issue with the unlicensed, I simply don't care how others choose to run their business and I don't believe in big government making every damn thing their business.
With that said, pricing will vary depending on your area and your costs, the time and efforts you put into the cake as well as the design. You need to figure out how much you charge per serving, I know a lot of people charge $5+ per serving on 3D cakes, with a minimum of $200. Something to think about. :) good luck!
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I'm probably the only one on here that doesn't have an issue with the unlicensed, I simply don't care how others choose to run their business and I don't believe in big government making every damn thing their business.
With that said, pricing will vary depending on your area and your costs, the time and efforts you put into the cake as well as the design. You need to figure out how much you charge per serving, I know a lot of people charge $5+ per serving on 3D cakes, with a minimum of $200. Something to think about. :) good luck!
Thanks for the kind advice :) I have no idea about pricing based on slice. I've clearly stepped into uncharted waters and I now feel terrible. thanks!
AFYI, a pretty liberal cottage food law was passed in LA recently: http://cottagefoods.org/laws/usa/louisiana/
Thanks for the info! I will say that this wedding cake order was something I thought I could do b/c the bride had an order placed with a bakery for April of 2014 and it is the day before Easter. That bakery baked out on her b/c of the holiday. I felt bad and said that I could help. This is not about making money but it will involve a lot of time, just didn’t know what to expect on a price range. However, I see that it’s not the thing to do anyway.
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Thanks for the kind advice :) I have no idea about pricing based on slice. I've clearly stepped into uncharted waters and I now feel terrible. thanks!
Break down your recipes and see how much it costs you to produce each recipe, start there and then figure out how much you want to charge. Don't feel terrible.
And my last post on this will be this. According to the link that Mr. Jason posted above, I am fully LEGAL. I can and have the ability to make, decorate and sell these cakes out of my home, as I please. So to all of you who said this is ILLEGAL, read the link he posted. It is sad that someone can’t come on here and just give kind advice rather than throw stones. For Miss “ddaigle” I will tell you about those two bakeries and WHY no one wants to drive to those bakeries who are local. First and foremost, Sweet Impressions does NOT have a good reputation for their cakes (their food is great). I cannot tell you the countless people who have come to me (that have used that bakery) and told me they were NOT happy with their cakes. I, MYSELF, placed an order with Sweet Impressions (with the Owner, as a matter of fact) over the phone. I told him everything I wanted (a two tiered cake) and gave him a $25 DEPOSIT over the phone with my debit card (two weeks ahead of time b/c I knew the cake needed time for prep). On the day of the party, TWO hours before the party, I showed up at his bakery and he had no idea what I was talking about. He did admit that he forgot about the cake entirely, that he NO cake for me at all BUT that he would make one in that two hour time frame. It would not be what I ordered but that he would make it. I got that cake AFTER the party started and it tasted like 100% vegetable shortening. Yes, that’s my opinion and that’s why I decided that I was tired of paying $200 for a birthday cake. I decided then that I would make and decorate my own cakes, and I made sure they tasted better. The rest is history. THAT, my friend, is why no one will go to the bakery. Also, the newest Dawn’s bakery is not even open yet. So no one knows about it, no one has mentioned that they will be going and I sure hope that it is a true asset to Central! I look forward to tasting their stuff!!!
Not a troll J I’m a true, bonafied person who happens to make some pretty super cute cakes that taste just as good! It's not my fauilt that I don't have the heart to charge someone $200 for a cake. I don't want to pay that much for a cake!
And my last post on this will be this. According to the link that Mr. Jason posted above, I am fully LEGAL. I can and have the ability to make, decorate and sell these cakes out of my home, as I please. So to all of you who said this is ILLEGAL, read the link he posted. It is sad that someone can’t come on here and just give kind advice rather than throw stones. For Miss “ddaigle” I will tell you about those two bakeries and WHY no one wants to drive to those bakeries who are local. First and foremost, Sweet Impressions does NOT have a good reputation for their cakes (their food is great). I cannot tell you the countless people who have come to me (that have used that bakery) and told me they were NOT happy with their cakes. I, MYSELF, placed an order with Sweet Impressions (with the Owner, as a matter of fact) over the phone. I told him everything I wanted (a two tiered cake) and gave him a $25 DEPOSIT over the phone with my debit card (two weeks ahead of time b/c I knew the cake needed time for prep). On the day of the party, TWO hours before the party, I showed up at his bakery and he had no idea what I was talking about. He did admit that he forgot about the cake entirely, that he NO cake for me at all BUT that he would make one in that two hour time frame. It would not be what I ordered but that he would make it. I got that cake AFTER the party started and it tasted like 100% vegetable shortening. Yes, that’s my opinion and that’s why I decided that I was tired of paying $200 for a birthday cake. I decided then that I would make and decorate my own cakes, and I made sure they tasted better. The rest is history. THAT, my friend, is why no one will go to the bakery. Also, the newest Dawn’s bakery is not even open yet. So no one knows about it, no one has mentioned that they will be going and I sure hope that it is a true asset to Central! I look forward to tasting their stuff!!!
Not a troll J I’m a true, bonafied person who happens to make some pretty super cute cakes that taste just as good! It's not my fauilt that I don't have the heart to charge someone $200 for a cake. I don't want to pay that much for a cake!
If you don't want to make money on it and you want to do it to be nice, that is perfectly acceptable for you to do that. For my friends kids, I make all their birthday cakes for free and consider it my gift to them on their birthday. :) However, I charge everyone else between $3.50 and $4.50 per serving, lol.
A
Original message sent by Cakeprob
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[COLOR=000000]It's not my fauilt that I don't have the heart to charge someone $200 for a cake. I don't want to pay that much for a cake![/COLOR]
It's this last statement that chaps my @$$. You are not your customer. I can't afford my cakes either, but believe me, there are planty of people out there eho have no problem doing so.
A
Original message sent by Cakeprob
[COLOR=000000]And my last post on this will be this. According to the link that Mr. Jason posted above, I am fully LEGAL. I can and have the ability to make, decorate and sell these cakes out of my home, as I please.
AI work full time and do family and friends cakes, I will take orders from people at work who have seen my work. I am legal to do this in my state. If you are legal, than bake away! Everyone needs to MYOB. If you don't want to answer the question than skip over it!
A
Original message sent by ljslight
Everyone needs to MYOB. If you don't want to answer the question than skip over it!
If the replies bother you, skip over them.
AIf you're thinking about doing this as a business you need to charge enough to cover your costs, pay yourself for your time and maybe make a little extra on top. That is where $200 for a cake comes from. If your friends will all do hours of work for you for free out of the goodness of their hearts then fair enough, but most people come to find that the 'friends/family' who they are making this virtually free cake don't appreciate it anywhere near as much as they should.
If you're just making cakes as a favor then it's up to you how much you want to be reimbursed for (but knowing what your costs are is a good place to start). Just don't be surprised when you find yourself being asked to do more and more and you get burnt out from working your tail off with nothing to show for it.
A
Original message sent by ljslight
I work full time and do family and friends cakes, I will take orders from people at work who have seen my work. I am legal to do this in my state. If you are legal, than bake away! Everyone needs to MYOB. If you don't want to answer the question than skip over it!
Giving someone a number and leaving it at that isn't helpful to anyone.
Failing to inform someone who may not know they are running an illegal business that they could get into trouble doesn't help anyone either.
Not everyone running an illegal business is doing it willfully.
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And my last post on this will be this. According to the link that Mr. Jason posted above, I am fully LEGAL. I can and have the ability to make, decorate and sell these cakes out of my home, as I please. So to all of you who said this is ILLEGAL, read the link he posted. It is sad that someone can’t come on here and just give kind advice rather than throw stones. For Miss “ddaigle” I will tell you about those two bakeries and WHY no one wants to drive to those bakeries who are local. First and foremost, Sweet Impressions does NOT have a good reputation for their cakes (their food is great). I cannot tell you the countless people who have come to me (that have used that bakery) and told me they were NOT happy with their cakes. I, MYSELF, placed an order with Sweet Impressions (with the Owner, as a matter of fact) over the phone. I told him everything I wanted (a two tiered cake) and gave him a $25 DEPOSIT over the phone with my debit card (two weeks ahead of time b/c I knew the cake needed time for prep). On the day of the party, TWO hours before the party, I showed up at his bakery and he had no idea what I was talking about. He did admit that he forgot about the cake entirely, that he NO cake for me at all BUT that he would make one in that two hour time frame. It would not be what I ordered but that he would make it. I got that cake AFTER the party started and it tasted like 100% vegetable shortening. Yes, that’s my opinion and that’s why I decided that I was tired of paying $200 for a birthday cake. I decided then that I would make and decorate my own cakes, and I made sure they tasted better. The rest is history. THAT, my friend, is why no one will go to the bakery. Also, the newest Dawn’s bakery is not even open yet. So no one knows about it, no one has mentioned that they will be going and I sure hope that it is a true asset to Central! I look forward to tasting their stuff!!!
Not a troll J I’m a true, bonafied person who happens to make some pretty super cute cakes that taste just as good! It's not my fauilt that I don't have the heart to charge someone $200 for a cake. I don't want to pay that much for a cake!
I'm sorry that you got a little pounced on. I think many of us on here get a little irritated at the frequency with which these questions pop up. How much to charge...etc. It would be nice if we could all just ignore the question or post a little "type 'cake pricing' in the search bar." And then just LET IT GO!
I'm glad to see that you are legally allowed to do this out of your home. I will say that after some time, you may come to realize that undercharging quickly gets old. Supplies are expensive and there is a solid reason why good bakers/cake artists charge what they do for a cake. Most of us on here would rather get paid what we are worth, do less cakes at a higher clip so that we have more time with our families and can say "no" to many orders because we already said yes to ONE or TWO that will pay the bills.
Keep in mind that not everyone is your customer. I understand that it is hard to charge someone $200 for a cake, but if you are highly skilled you HAVE to know that you shouldn't make $2.50/hr, right?! This is a SKILLED job, an artistry. It's not flipping burgers...heck, an ALDI's cashier in OH makes $11/hr! Not that it's not a respectable job, but there isn't much skill involved...just logic so you aren't smashing the bread with a can of peas.
I always say that I wouldn't be my own customer...well, I would for maybe for SUPER SPECIAL occasions, and then, only if I had the extra money. Would I want to buy a cake from someone such as myself? ABSOLUTELY! I guess I am lucky that I can do it myself. I have a customer that orders a cake from me for her two daughters EVERY YEAR for the last 4 years! She is MY target customer...who is yours?
AND HERE IS MY RANT: It sounds like you are fairly busy. And why is that? You say it's because people don't want to drive far for a cake. No...it's because you aren't valuing yourself and it allows people to take advantage of getting a whole lotta sumthin' for nuthin'. Isn't that our country's mentality these days? Let's not value quality so we will buy as cheap as we can and put the skilled, quality product providers out of business. Yes, I HATE Wal-mart! I do shop there occasionally and cringe every time. You may feel that you are doing a service to others - and you are (who wouldn't want a kicka$$ cake for super cheap?) but you are doing a GREAT DISSERVICE to the industry.
Just some thoughts...I don't want this to come off as hateful or anything. I hope you can find a pricing niche that is comfortable for you for your time and effort. There's no need to gouge your customers but you don't wanna burn yourself out, either!
I don't want to compare our jobs to plumbers, electricians or other skilled workers. Those types of jobs are a necessity. I would compare us to a housekeeper or a house painter. Not necessary, but they are paid well for their services IF they are good at their jobs. Those luxuries in life. I have a cleaning person that comes to my house once every other week. It's my BIG splurge on myself, a mom of 4 boys. I pay her $20/hr and it's worth every penny to ME. That's what I want MY cakes to be to my customers!
Good Luck and I will see if you have pics posted. We'd love to see your work. And don't get discouraged by the slight bashing....this is a great site.
The first three sentences alone should tip off the well-versed of this community that this is a troll post. GMAB.
I agree and saw the same thing. The first threel sentences in Cakeprob's original post sounds exactly like a troll we've been seeing a lot of. What would a troll say? ---> I don't have a licensed business but I do a LOT of business. I charge well below what a bakery charges. Brags about intentionally undercutting bakeries.
Everything is intended to provoke and see how upset they can get everyone - that's what trolls do. And when one thread gets ignored or locked, another one pops up.
Not a troll? Then consider not sounding like one and stop with the inflammatory remarks. If you're not a troll then wise up because undercutting is unkind, unconscionable and not what someone "with heart" does.
AI really don't think OP is a troll, especially considering she created her account in Feb 2012. There are a lot of people out there who are operating "under the radar", don't know or don't care about legal compliance, and don't have the business savvy necessary to price their products appropriately.
There may be a self-fulfilling prophecy at work here though, since if you accuse someone of being a troll it's not surprising if they respond in an increasingly inflammatory manner (even if that wasn't the intent to begin with).
AMine too. I was thinking you were getting a tiny but of a hard time. That just spins me right over the edge!
Original message sent by Godot
It's this last statement that chaps my @$$. You are not your customer. I can't afford my cakes either, but believe me, there are planty of people out there eho have no problem doing so.
ACalmed a bit.
What upsets me is that statement implies that I am heartless as exampled by my $4.50 per serving price tag. I may be biased, but I think I have a big ole heart. I donate several cakes & time to charities throughout the year. Doing one this weekend for BreastFest. It will cost me about $500.
I have spent countless hours an thousands of dollars learning my skills. I base my fee on my costs, my market, & the value of time I spend away from my husband and son.
It really irritates me that someone (not just you) with little to no research of what my costs really are would make accusations of the person I am while at the same time devaluing my skills and artistic ability!
Wasn’t going to post again b/c this post has clearly lost its original subject. I am, in no way, trying to devalue or accuse anyone of overcharging for a cake. I never once ‘bragged’ that I undercut a bakery. I don’t charge what a bakery charges b/c I AM NOT A BAKERY. I never posted anything to upset anyone. I never gave inflammatory remarks (where did THAT come from?) Point is, I got into this hobby so I wouldn’t have to pay those prices for a cake. I’m broke just like everyone else!!! I completely understand WHY they cost the way that they do. I am very selective in what cakes I make. I have SIX cakes for the month of October that are completely FREE. Which consist of two teacher birthday gifts, my sister’s birthday, my own brother’s birthday, my Aunt’s birthday, my OWN child’s birthday cake. The teacher cakes are single layers with fondant broach flowers, pearls, fondant trim, fondant letters, fondant teddy bears with little tiny bows. My siblings cakes will be single layers cakes covered in fondant makeup (my sister) and chef cake board with vegetables (my brother, he’s a chef). My OWN child will have a massive 3 tiered cake that is Halloween themed complete with handmade pumpkins, tombstones, vines with tiny veined leaves, multicolored ruffled fondant rounds, a little witch girl cake topper, cake wires with little bats and ghosts, handmade fondant candy. I have taken the Wilton cake courses. THIS IS MY HOBBY. I have several sets of cupcakes to make with little fondant cake toppers (turkeys, ice cream cones, Halloween ghosts and pumpkins) for my 3 kids’ classes this month. And its all for free. Yet I’m running a business illegally?
I completely understand the need to charge. I charge people the supplies, the tools and maybe a delivery fee (on the few I do charge for). I do a few cakes a month. I ‘seem’ busy b/c I take an extremely long time for perfection. So don’t tell me that I don’t understand what it takes to be an artist in this industry. I’ll never understand why I was quoted FOUR hundred dollars for a white fondant, two tiered cake with a regular filling and candy lollipops sticking out of the top. This candy was NOT hand made. I was quoted $400. I can make the cake for less than $100. True fact. Which is why I chose to get into this HOBBY. And the bakery has been around for ages, they do extremely well and so they can charge that b/c they don’t need my business. So what if I turn them down? No skin off their back. THAT’S why they charge what they charge. I know that not everyone charges that way. But it is how businesses are ran, not just bakeries!
And, How it is anyone’s business of theirs what I do with my cake mixes, my icing and my fondant. Who cares if I charge $1 or $1000? You run a business, you do well. I don’t, b/c I don’t want one! I do this as a hobby, on the side, and that’s exactly what it is. I posted the OP b/c I was trying to help someone in a rut, and had no idea how to price a job like that since I’ve never done one before. Simple as that. Thank you for those who gave kind advice, even those with kind words to nicely get their point across. To those who got hostile, maybe there is some underlying reason you are so hostile from a previous experience. Yes, I’ve been member here for a long time b/c my love for cake decorating goes back for quite some time. I love to read on here and get all kinds of ideas and advice. Yet, I post and obviously was sent walking out the door.
I really don't think OP is a troll, especially considering she created her account in Feb 2012. There are a lot of people out there who are operating "under the radar", don't know or don't care about legal compliance, and don't have the business savvy necessary to price their products appropriately.
There may be a self-fulfilling prophecy at work here though, since if you accuse someone of being a troll it's not surprising if they respond in an increasingly inflammatory manner (even if that wasn't the intent to begin with).
You must be right. I found her first several sentences to be very inflammatory.
To the OP, you must be a regular person looking for info and I'm sorry that you walked into a situation where people are sure you must be a troll. I hope you will try to understand our reactions to some of the things you said and instead of registering only our outrage and deciding we're crazy, perhaps think twice about your point of view and consider that we may know what we're talking about. People didn't think you were a troll for no reason at all.
I get that you are happy to be getting business that might otherwise go elsewhere, that's natural. That's what competition is all about. But there is such a thing as unfair competition and when you don't charge in line what a brick and mortar bakery would charge, that's unfair to the bakery and to you. If this nationwide trend of undercharging continues, the walk in bakery will exist no more and it will be harder to get professionally done cakes as not everyone is willing to convert his/her home kitchen into a bakery. And if undercharging is low enough professionals will have to get out of the business to support themselves and all cake will be done by hobby bakers.
Anyway there's good information on this forum if you're willing to hear it.
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