Pricing LIst HELP!
February 19, 2012 9:12am CST
OK here is the situation..... I have been making cakes for about 5 years now. I absolutely love it!! I make cakes for all my kids' birthdays and sometimes for friends and family when they ask and then I just make some because. I have also made a cake for someones wedding when they asked me too (for Free). Then recently someone at work found out I did cakes and I have done a couple for her. Also I do LOTS of cupcakes and just bring them to work as well. Theres my background... I have always gotten soooo many comments on my cakes and EVERYONE always tells me I can't believe you just give cakes for FREE! Everyone says I should start up my own business and sell them. Recently I have been really wanting to. I have a chance of loosing my job in April due to downsizing so I want to use baking as my backfall. MY PROBLEM: I need a pricing sheet for what to sell them for and am sooo clueless. There are so many different cakes that it is hard to just set one price. Also some cakes take so much more time, some take a lot more products, ect. ect. I have tried seeing what other people charge but most wont tell me unless I am interested in buying a cake from them. If any of you have ever sold cakes could you help me on what you sold them for? Others if you have any ideas of how I can make a price list that would be the same for everyone that would be awesom!! I REALLY NEED THE HELP!! I have a price list for my cupcakes but that was the easy part....cakes are the hard part... Thanks so much for everyones help!
• United States
19 Feb 12
One easy way to find out is to check online and see what others who do the same are charging. Basically, I would factor in the cost of the ingredients, your time (give yourself at least minimum wage!), and the cost of electricity/gas for the mixer and oven. You can always offer "bargains" on those who purchase two or more of items. Give specials at first to hook people. You could offer a few free cupcakes to those who buy a cake, or give a discount initially. Specialty orders should cost more. Your goal is to make profits, not new best friends. Good luck!
20 Feb 12
Hi and a happy day to all! I want to help you by suggesting steps that you need to do before you can set up a price list. I studied accounting and i have an idea of how your going to have a fair price for the products same with a good profit you can make. First step, for every variety of cakes you do, make it a habit to list the prices of the ingredients per cake. Second step, you will have a rough idea how much is your capital per cake, so you can also add cost like your electricity you consume and your labor. Third step, you can survey prices by visiting bakeshops, or cafe. This will help you establish final price but consider that big name bakeshops has advantage of making it pricey because of their brand name. Well just simply think, make you own the best cake yet affordable but not compromising your talents and money that you spent every time. Enjoy your day!
19 Feb 12
Although there can be a lot of variation between the products, I think you need to try and break them down into "categories," eg type of cake - sponge, fruit etc - and size of cake. Try and work out how much it costs in ingredients to do a cake of one type in several different sizes, and how much time it takes. I imagine the time for a 6" cake for example is not going to be too different in preparation time to a 12" cake, so you may need a premium. When you have basic prices for different cake types and sizes, you could then work out extras, with the price dependent on the size of the cake, such as icing, decoration etc. Hope this helps give you a starting point.
• United States
19 Feb 12
but actually depending on what you are putting on the 6" cake it could take longer than a 12". Example if I make handmade characters and put them on the 6", but then the 12 is just plain with a little writting....The 6" would definitely take a lot more time. Thats also the reason I dont think I could just set a certain price per the size of the cake...ooohhh its so mind rattling!! Thanks for your comment though...breaking them down into categories would be a good start, such as theme cakes verses ummmm lol
19 Feb 12
I would imagine though that a 6" fruit cake is probably going to take a similar amount of time to a 12" fruit cake, and will use the same ingredients. The initial prices would just be for a cake, with no extras, so the price for a 6" fruit cake would just be for that. Extras would then be added on afterwards. The same extras for any 6" cake should cost the same, no matter what the actual cake is made of. So you would essentially have two price lists, one for cakes and one for extras. eg Fruit Cakes 6" $5 8" $7 Sponge Cakes 6" $4 8" $6 Extras Words $0.25/word Icing 6" $3 8" $5 I'm just pulling numbers out of the air for the prices.