How Much Does A Sheet Cake Cost
How to Accuse for Cakes. How do I charge for cakes? How do I set prices? How practice you know how much to charge? What price would yous charge for this block?
I receive emails and comments (and sometimes even phone calls) every single calendar week asking me about how to determine what to accuse for cakes or how to price cakes.
I've been debating on posting this for awhile, but since I've shared it with so many readers privately, I figured I might as well go alee and make it public. Then hither'south my respond.
Please note, this article primarily relates to home bakers, but hopefully anybody in the cake decorating concern can glean some tips!
Pricing cakes is definitely one of the hardest parts of doing a block business. When I started, I was just throwing our random numbers and guessing.
Simply after doing some research, I came to the determination that charging "by the serving" works best for me and is pretty much the standard way to charge across the cake industry. I take a base toll for all cakes, so I add onto that price for details, difficulty, multiple tiers, etc. I also add on for delivery.
5 Top Tips for Pricing Cakes
For about the offset 2 years of doing cake, I was charging $1-$2 per serving for cakes. That was non expert .
Although I was inexperienced, flight by the seat of my pants, and learning as I went, I was still undercharging. I was killing myself with orders, making very little profit, and my abode and homeschooling were suffering.
This is an older price chart for me - my prices are higher now:
I was also trying to "compete" price-wise with mass production bakeries and grocery store bakeries and not wanting to charge "besides much" more than them. Learn from me: Don't even think virtually trying to compete with mass retailers!
After more 2 years of that, I knew things had to alter. I asked some trusted friends and other cake decorators and everybody agreed that I was undercharging.
In fact, a few of my customers would fifty-fifty comment on how "inexpensive" my cakes were, or how they were driving 45 miles to become a cake from me because it was nicer than some of the custom baker cakes and "so much cheaper".
That's NOT a reputation I wanted. And it'due south not a reputation y'all want either!
Y'all do non desire to be the cheap cake lady!
Another older chart:
So in 2012 (and over again in 2013), I had to change my thinking on How to Accuse for Cakes. After evaluating everything I was doing, I increased my prices and started to take fewer orders. I'1000 proud to say I'm finally making good profit on a regular basis.
I still don't charge equally much as some nearby bakeries (35 miles is the nearest "existent" town - I live in the STICKS!), but since raising my prices, I regularly pay myself and it feels swell! I'm also not undercutting local bakeries/bakers and stealing business with "cheap" cakes. PS - if you exercise that, you lot will make enemies!
I think that information technology's fine to take lower prices (but not super-duper grocery shop inexpensive) if you're new and trying to get established but once you're experienced, you should be making a profit. Especially if you're doing quality, comparable work.
Obviously, I can't respond that question for y'all – some bakers/cakers just do meliorate piece of work than others, merely you have to exist honest with yourself and set your prices accordingly.
If yous alive in a big city where the average toll for an intricately busy cake is $7 per serving, and yous know (or people are telling you) that your piece of work is as good or better than theirs, then don't sell yourself short – compete with those prices!!
If your piece of work and the quality of decorating is more along the lines of what they'd find at a grocery shop bakery, then you may want to gear your prices more toward what they're charging (although Not as low – they're all the same not putting out homemade cakes and they're not paying retail for ingredients!!).
You lot need to value your block work & charge accordingly.
The most important thing is this...You demand to value your work so that your customers will value your work! Never say or accept "it's but cake"! If they want "merely cake", let them get it from somebody else!
OH, and let me say this. I was terrified when I kickoff raised my prices, afraid of losing customers, etc. And information technology's still hard sometimes when people balk at my prices or make up one's mind not to order because they think I'm too expensive (especially local people in my tiny town)... merely honestly, I'm still turning down iii-v orders per calendar week because I'm booked up! (PS - most of my customers... probably 90% or more bulldoze 30+ miles to get my cakes.. I have a good reputation and people don't mind the drive!).
It'due south And then much nicer to know I'm really making coin doing what I love without sacrificing my family life for nada.
If someone can't afford my cake, I'm okay with that. Sometimes it's a genuine budget issue and I live within a upkeep myself – that doesn't offend me. But sometimes people want something "extra special" for a not so special toll and I can't cater to that.
I consider what I do fine art and I usually invest three-8 hours in every block. I need to be paid for my fourth dimension just like everyone else. This may sound harsh, but if people want to pay $.fifty (or less) per serving, and then they need to go to a grocery store and get a cheap block where the frosting is scooped out of a 5 gallon bucket and the sheet cake is baked hundreds of miles away and shipped frozen.
I don't look downwardly on that – I've bought and eaten my share of Walmart cakes and it'due south nothing to scoff at - only that's not what I do!
If they want a custom block that requires me to take away hours and hours of my time, from my family, so information technology's not gonna exist cheap. Menstruation. You don't want the reputation of being inexpensive and you lot have to brand it worth YOUR time or you'll fire out and quit.
I do brand exceptions (of grade) for family and friends. I often will give them a discount, simply I rarely do them for free unless it'southward my immediate family and and then they may still pay for ingredients.
How did I come to my "per serving" price?
I came upwards with my cost list based on three things:
- Consider what other local bakers/bakeries are charging. Call them and ask if you can. Sometimes at home nosotros have to charge less, just non much. Bakeries do have the added expense of paying for their edifice, extra utility bills, commercial equipment and maybe paying other employees, etc. Merely you want to exist competitive. Charge $three-3.50 per serving if they're charging $4… not you lot charging $ane per serving when they're charging $four!
- The toll of your ingredients and other expenses. This will take some time and math merely yous have to know what cakes are costing yous. Add up your ingredient costs (intermission it downwards per serving), cake boards, tape, boxes, gas for deliveries, business cards, even consider the electricity (if possible, check your previous bills and see if there was an increase after you started caking). All of these things thing!
- Your fourth dimension. This is virtually of import! As a homeschooling mommy of six kids, I have to really value my time. I don't want to exist spending my fiveth hr on a cake knowing I'yard only going to make $20 profit on it… that actually stinks! When I outset evaluated my money and profit, I was simply profiting about $2 per hour. That was NOT acceptable. You need to know or exist able give a actually good guess on how much time yous're spending on cakes. Yeah, there are times when yous're going to make a big mistake and something is going to take way longer than y'all predictable, but by and large speaking, you should have a fair idea of your time involved and decide how much you want/need to make per hour for it to be worth your fourth dimension and energy!
And then, I know you're probably all the same wondering ... but what practice YOU accuse?
My Cake Pricing Guidelines:
So here it is. This is non my exhaustive price list, but rather a general overview of my prices for decorated party cakes and hymeneals cakes. This is likewise subject field to change without detect:
- $4.00 per serving minimum; very few exceptions. This includes buttercream and fondant cakes. (updated in 2018 - my current prices average $iv.50-7.00 per serving).There is no exception to this rule. A uncomplicated sheet cake with 22 servings is minimum $88 (plus taxes). An 8" round with 24 servings is minimum $96 (plus taxes).
- For tiered cakes, they by and large start at $4.50 per serving for 2 tiers and the price increases per tier (by $.25 per tier, so a 4 tiered cake would be a minimum $4.l per serving) and for difficulty/blueprint. A 5" + 7" circular tiered cake with 26 servings is $120 minimum, plus taxes.
- I charge $15-25 actress for three-D sculptured toppers and sugar flowers or other intricate details
- I charge $5.00 per serving and up for sculptured/carved/3-D cakes
- Smash cakes are $20-$35 when ordered with a party block, depends on size and design. The $20 cake is a unmarried layer v" circular that I torte and fill to brand it well-nigh iii" tall. Always buttercream with minimal decorations. Here's an instance:
- Delivery across 10 miles from my home starts at $75. (Update: almost of my cakes go to larger towns effectually 40 miles abroad - this $75 fee covers those three towns and this only applies to wedding ceremony cakes - I don't deliver birthday cakes - they must be picked up in my tiny town)
- Cupcakes start at $20/dozen and custom decorations average $30 per dozen and up.
- Busy cookies start at $30 per dozen.
If yous want to get some "professional person" advice on some of this, check out these Craftsy Classes: Small Cakes, Big Business and How to Beginning a Cake Business organization. Craftsy classes are awesome and I've not been disappointed in any of the ones I've taken!
And that's it!! I think I've covered all the details and answered virtually of the questions I get! I wish y'all the best in your cake business organisation and as always, if I can help, don't hesitate to shoot me a message or email… and delight go along reading at RoseBakes.com!!
A more recent postal service on cake pricing that might besides help you : Let's Talk About Cake Pricing & Serving Sizes!!
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So, did this help you? Do you take other questions about how to charge for cakes? What practice y'all call back about my pricing? Good? Bad? On Par? I love to hear from readers and would love to have your input/opinions!
Related:
Why practise you lot charge so much for block delivery?
How Much Does A Sheet Cake Cost,
Source: https://rosebakes.com/how-to-charge-for-cakes/
Posted by: watkinsaromese.blogspot.com
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