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COSTING CONUNDRUM

post #1 of 5
Thread Starter 

Dear Fellow Home Cake Business People

 

I recently started up my Cake making business from home.  One of my greatest difficulties is getting the price right.  I seem to be under charging, which brings me repeat business, and exclamations of delight and later flowery compliments.  But, the minute I put my prices up, my existing clients have a melt down.

 

I have been charging 35 - 45 pounds for a Novelty Cake, which could take me anything from 5 - 10 hours to produce.  I've just tried to quote a client 50 pounds for a Hotwheels cake in the shape of a number 5, with checkered patterning etc.  Is this too much.  Can you give me some idea of acceptable pricing for professional looking home baked cakes?  The cake is to serve 15 children and 17 adults.

post #2 of 5
So after costs on your example novelty cake you are making about £2 per hour? I would gladly give up £2 an hour to get out for a run, take the kids to the park...

Your cakes are worth more than you are charging.

You are currently targeting people who want the world but don't want to pay for it, you are excluding people willing to pay a premium for a premium product because you are so cheap they don't trust that your cakes are good.

Increase your prices.

You will lose your old customers, but why make 5 cakes for them taking 50hours work when you can make 1 cake for the same profit with just 10 hours work?

If you dearly love your existing customers offer them a loyalty discount but seriously, depending on the quality of your work, you should at least double your prices.

Have a wee look at this: http://cakecentral.com/t/768131
and this: https://www.google.co.uk/#q=cake+central+pricing
post #3 of 5

Yikes, that is cheap. Where are you based?

 

I have just started and the first thing I was very particular about was pricing. Up to when I got legal, I was doing cakes for free and for ingredients only for friends. Following a very lengthy discussion on CC I took on board all the comments, and they were soooo right. Those that I baked for before definitely won't be buying from me now as I am "too expensive" for them. Which is fine. But, in all fairness, I can use those cakes as a portfolio.

Just as a guide, only a guide (because only you can know what you pay for your ingredients and labour etc) my novelty cakes (i.e. modelled toppers, scenes etc) are £80-100, that's for an 8" round. Tiered £150+

 

Good luck with it, but I suggest even if you don't rely on the income as such, that you price it as if you did, because that will get you the customers you want. Some will have a cow at your prices, but it's because most don't have a clue what goes in to making it. As soon as you explain, they get it. Or they don't. And if they don't, then no cake for you.

Having said that, if it's for a good friend, that does me lots of favours, they do get Mates Rates!

post #4 of 5
Thread Starter 

Thank you so much for your feedback!  I really appreciate you taking the time and trouble.  I will definitely take your advice on board!

Jael

post #5 of 5
Thread Starter 

Thank you so much for your feedback!  I really appreciate you taking the time and trouble.  I will definitely take your advice on board!

Jael

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