Forum: Cake Decorating Business

Starting up

Hello everyone,
I’m from Australia, and wanting some advice on starting a cake business from home. I’m after some advice on what you all did when you first started off? I know I will need to contact local council re food laws etc. Also I will need to register a business name and get an ABN.
What I am most interested in is finding out how you price your cakes?
Do you individually cost your recipes?
Also do you have universal recipes that you just increase quantities for bigger sized cakes?

Any advice you can share would be much appreciated, as I aim to start off very slowly and have everything set in place before I even put the word out there, so as not to overwhlem myself.
Thanks ladies

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4 Replies

Karen MacFadyen ...

Pricing cakes is interesting. You must remember to add in your time too. I find that a lot of cake decorators simply take the cost of the ingredients and perhaps forget about all the time they spent designing and shopping and cooking and clearing up the kitchen! So decide on how much you would like to earn from your craft as well as learning aspects of pricing and how to scale up cakes. Keep in touch.

Suzicakes ...

Hi Karen, thanks for your reply.
I am sorting my recipes and am pretty comfortable with costing them out, the only thing that is confusing me is how to increase price for different sized cakes? Also how to adjust the recipe for bigger tins. If anyone can offer some suggestions on how they adjust their prices/recipes for sized cakes it would really help alot. i want to bake from scratch as well, no packet mix. The other thins is what is the best serving guide for cakes?
I’m hoping to sort my pricing out soon, as I have no idea what to say when asked how to quote a cake.

Susan Johnson ...

i started out covering costs and adding a little for my time.. I made it very clear to my customers that the price is usually much higher but i need to get a portfolio of pictures for my website so if its something new and interesting that i havent yet done i charge less. If its something i have done before i charge the “full price” most customers are happy to let you do something a little different to get the discount and it gives you the chance to build your folio, skills and good relationships as people think you valued them as you offered them a discount… It worked for me.. i started less than 4 months ago and i am busy busy busy already… good luck :)

Karen MacFadyen ...

Having made the Cake Calculator, I am now working on another calculator to size up recipes which is easy to use, so exactly this – adjusting recipes for bigger tins, as well as serving guides. So watch this space – or facebook space to be more precise! Good luck everyone…..:) Kx