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Please help me to price the caKE

post #1 of 56
Thread Starter 

I recently started my own Cake Decorating business at home, I’m new at this and I’m curious about pricing and how much to charge my customers.I have request for a birthday cake.I dont know how to price this cake.The cake is a 3 tire cake with14",10" and 6" and the decoration as it is on the attached cake,three layers with 3 different flavors.Please help me on this :-)

post #2 of 56

This question has been asked hundreds of times on here.  Did you do a search?

Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
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Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
Reply
post #3 of 56

Hi! Welcome to CC.

 

The best way to find the charge for this cake is to Figure out the costs of your ingredients and hourly rate for a regular recipe of cake, add it all up, divide it by the number of servings in that recipe and you will have your cost per serving.

 

After that consider how many servings this cake serves and multiply that number by your serving size. That will most likely give you your base price. Then, add on according to how much time it takes to produce the gumpaste flowers (including the cost of materials ie. cake boards, base, ribbon, external fondant) multiplied by your hourly rate.  

 

Don't forget to do this for each flavor if your ingredient  cost changes. And also count delivery charge if this is a business transaction. 

 

Basically, this is something you will need to do for yourself because most  bakers can quote a 3 tiered cake from anywhere between $300 and $1000 depending on ingredients and serving size!

post #4 of 56


I was wondering how much this would cost?
post #5 of 56
Quote:
Originally Posted by hollysirena View Post



I was wondering how much this would cost?

Hi! Welcome to CC.

 

The best way to find the charge for this cake is to Figure out the costs of your ingredients and hourly rate for a regular recipe of cake, add it all up, divide it by the number of servings in that recipe and you will have your cost per serving.

 

After that consider how many servings this cake serves and multiply that number by your serving size. That will most likely give you your base price. Then, add on according to how much time it takes to produce the gumpaste flowers (including the cost of materials ie. cake boards, base, ribbon, external fondant) multiplied by your hourly rate.  

 

Don't forget to do this for each flavor if your ingredient  cost changes. And also count delivery charge if this is a business transaction. 

 

Basically, this is something you will need to do for yourself because most  bakers can quote a 3 tiered cake from anywhere between $300 and $1000 depending on ingredients and serving size!

post #6 of 56

I have just recently came up with a pricing chart for myself with calculating my ingredients and average time.  I always seem to go over the time estimated but that's usually because I'm trying something new. 
For 6,10,14 inches I would start at $247.00

post #7 of 56

Welcome to CakeCentral everyone!  Since you are new to the forum, you have no way of knowing that "How to Price this Cake" is THE #1 asked question on this forum. 

 

Here is a link to a  superb article (and an excerpt from that article).   I also strongly suggest you do a forum search for pricing threads.  (There are literally 100,000's of threads and millions of posts.)

 

http://www.cakeboss.com/CakeStuff/Articles/HowMuchShouldICharge.aspx

 

"This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business.  As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs."

 

Happy research (and baking!)

post #8 of 56

I just posted this on another thread. it's long and I suppose most people won't read it :)

 

Read as much as you can. Beware that a large part of what you will find is a lot of stuff about how to know the cost of your cakes. It's indeed necessary to know the cost in order to know whether it's worthwhile to bother making cake. However, price is determined by the market value of similar work. Just that alone. Period.

But it's important you learn market prices by using the right examples. Often a free standing bakery is charging in line with what you should be charging. But not necessarily. If they are using premade cakes and icing out of a bucket, then you would charge more.

It's very important to avoid using prices from people who haven't done the necessary homework and are charging too little. I'm not saying they don't effect the market, but it's everyone who sells cakes responsibility to charge appropriately. It's also possible that people not charging enough have created a situation in your area where, because prices are so deflated, there's no point in turning on the oven.

Market price is how McDonald's, Macy's and probably the local taco stand do it. This is what you'd find on any business site addressing the subject.

When you only consider your cost and then tack on a wage, it creates a mess for you and anyone trying to make one's livelihood in cakes.

It can be helpful to understand that most of us who endeavor to sell highly decorated cakes are not typically people who can afford this product and those in our social circle are not likely to be either. Therefore, you have to seek a way to identify and reach your true customer. In my experience, they tend to be the same ladies whose closets are lined with $700 shoes. Not that I'm looking in their closets icon_smile.gif

This may sound like a lot of work, but it's not nearly as much as slaving away for too little pay.

post #9 of 56

Quote:

Originally Posted by Apti View Post
 

Welcome to CakeCentral everyone!  Since you are new to the forum, you have no way of knowing that "How to Price this Cake" is THE #1 asked question on this forum. 

 

Here is a link to a  superb article (and an excerpt from that article).   I also strongly suggest you do a forum search for pricing threads.  (There are literally 100,000's of threads and millions of posts.)

 

http://www.cakeboss.com/CakeStuff/Articles/HowMuchShouldICharge.aspx

 

"This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business.  As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs."

 

Happy research (and baking!)

That's a great article by Kelley Masters. She and I had a few discussions on the subject of pricing. And the place where we disagree, may be that in my opinion, cake prices should vary, but not as drastically as it's commonly assumed. There's a limit to how little one can charge for cake and still make a living and a limit to what a sane person will pay. The cost of living varies across the country, but cupcakes. for example, don't tend to vary greatly. If you look up the price of  the same cupcake by a national chain, you'll see they charge about the same as they do on Rodeo drive as they do elsewhere.

 

Now I'm not saying there aren't people charging drastically different prices, but that's happening because people don't know what to charge or because they live in an area that can't support a custom cake business. I definitely have people say they'd rather have one of my cakes, but so-and-so down the road will do the same cake for half to a third of my price.

 

So here's another beware... beware of falling into the "cakes don't sell for much in my area" trap.  Maybe they don't, but if that's the case, best to stay of the cake biz in that locale. Lamborghini doesn't put a dealership in rural areas - not enough rich people to buy those cars.

 

Please note, my comments are aimed at highly decorated custom cakes. You can sell "eating" cakes pretty much anywhere.

post #10 of 56
Veronica, that's less than $2 per serving. I certainly hope that was a typo.
Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
Reply
Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
Reply
post #11 of 56
Quote:
Originally Posted by leah_s View Post

Veronica, that's less than $2 per serving. I certainly hope that was a typo.

It's no typo :(  I wish it was.  I just can't get really great prices in my area.  I would love to due to putting so much time into each one of my cakes.  And that's the price chart that I have just started the past few weeks.  I do get burned out and frustrated.  I had one girl and her sister call up for a cake price.  I tell them $45 and she said "if you can do it for $25 I will order it".  I sold a 4 tier a few weeks ago for $185 covered in fondant and handmade bows.  Quilted look on a two of the tiers and detailed piping on the other two.
I just priced a two tier to a girl for $75.  I don't know what to do. 
I get messages all the time "tasted great", "I've heard you are the best", "you come highly recommended", "you do amazing work".

BUT THEY ALL WANT IT CHEAP!!!! 
I have made myself sick over it the past few weeks.
 

post #12 of 56

8O 

post #13 of 56
Quote:
Originally Posted by Godot View Post

Then stop selling yourself short, for Christ's sake. Your posts make me want to slap you.


You and me both!  lol

post #14 of 56

 OP and Veronica1203 don't be afraid to set standards for your work. By selling your cakes at those prices you are doing yourself a great disservice. You may lose a few customers by changing your prices but you will have your peace of mind knowing that your prices reflect your talent and hard work. So please set your prices accordingly, you're worth it!


Edited by enga - 3/14/14 at 2:43pm
post #15 of 56
Quote:
Originally Posted by enga View Post
 

 OP and Veronica1203 don't be afraid to set standards for your work. By selling your cakes at those prices you are doing yourself a great disservice. You may lose a few customers by changing your prices but you will have your peace of mind knowing that your prices reflect your talent and hard work. So please set your prices accordingly, you're worth it!


Thank you enga.  I am getting a little better at it.  I made a price chart to go by.  I spent a lot of time calculating my ingredients. 
I'm glad I like doing it.  I look at this as practice years :).  It's either that or I'll give up and cry. lol

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