Forum: Cake Decorating Business

Pricing Help!!

I started my business 6 months ago and the one thing I have trouble with is pricing. I made 2 military cakes for a lady and I believe what I charged was fair, but the lady acted like it was too much. If you could go to my page and look at the 2 cakes, they are in the military folder and let me know how much you would charge(USD). Especially the helicopter sculpted cake. https://www.facebook.com/pages/Custom-Cakes/147400565342640

You can have your cake and eat it too! https://www.facebook.com/carriefreemancakes

1,133 views

10 0
Share Tweet
Follow

10 Replies

Kathy Kmonk ...

Pricing is such an interesting subject. Everyone can give you advice but no one can tell you exactly how to do it. Usually you figure out what the cost of your ingredients is and add to that how much you want to make per hour and that’s your price. What someone is able to charge in one area of the country may not be what someone else can get in theirs.

I’ve heard that The Cake Boss cake pricing software is handy to have, but it’s pricey. I hope to purchase it sometime in the future. Here’s a link if you are interested… http://www.cakeboss.com/

I know I wasn’t much help but, good luck with your business.

Carrie Freeman ...

thanks, actually I am really interested in how much different cake makers charge, that way I wont feel bad to have to charge someone, I have always been the type of person to give stuff away, so when I started this business I had to make sure I charge enough so I dont go broke, lol. :)

Tiffany Palmer ...

Pricing is the hardest thing, I still have problems with it too. It’s based on soo many things. (do you make from scratch/box, supply cost, where you live, experience, time, etc.) The best advice I can give you is to see what others in your area are charging, how their product compares to yours and go from there. Also if someone thinks you are charging too much for your work and you don’t feel you are, you have to be able to let them walk away. Good luck.

Carrie Freeman ...

thanks :)

Valley Kool Cakes (well half of it~Tara) ...

I have trouble as well. I work from my home and share a face book site with a friend of mine and I know our prices are very different. She charges significantly less then I do how ever our work is different as well. Hers tends not to be as clean… and just a different quality. I know she has had complaints that she charges too much and I tell people up front you get what you pay for. I can’t get my facebook to open right this second but i will try again and tell you what I would have charged. I always worry that I am going to offend someone when I quote a price but I need to make it worth the days of work that go into it as you know. My husband says I don’t charge enough… It is a tough area that’s for sure. I will check your page and get back to you.

Valley Kool Cakes (well half of it~Tara) ...

I would say 80-90 for the helicopter and 60 for the other. But it depend on the kind of cake and filling as well. I usually charge more for things like carrot cake and cream cheese. Hope I helped you a bit…

Fun Fiesta Cakes ...

Keep in mind that you are in this business to make a profit – it takes a lot of money to purchase all the tools you need to be a cake designer, plus the cost of the ingredients, and your time. The best thing you can do is discuss the price with your client openly and confidently. If you continue to get business and especially referrals from previous clients – then you’ll know you are on the right track price-wise.

Base your price on a per serving scale – If the design is very intricate – charge a “design” surplus. Call bakeries in your area to find out their “per serving” charge and that should give you an idea of the prices people are willing to pay in your town. Hope this helps.

P.S. I would have charged $100 for the helicopter.

Carrie Freeman ...

thanks everyone! I do feel better now :) They loved the helicopter (thank God being it was my first one). they also sent quite a few people to my site. Where I live, I only know of 4 other custom cake makers. The closest one to me is 30 minutes away(besides Wal Mart and Publix). I tried contacting the lady that does the cakes closest to me and asked her how much she charges for cakes…I explained that I make cakes too and I wanted to be fair in my pricing and I didnt want to undercut her pricing (although my cakes are quite different than hers over all). She wouldnt respond to me once I told her that sooo. The other lady that is 2nd closest to me(an hour away) is a good friend who started decorating after I did, but she started her business a few years before me, so we often compare prices. Her cakes too are different than mine in a sense. The other ladies are both about an hour and a half away and I really dont consider them competition. The cheapest place I have seen around here to get a cake is Wal Mart. They charged $128 for a simple, 3 tier wedding cake (10,8 and 6 inch round). And that is just buttercream.

Tiffany Palmer ...

Best thing I can say to you is never, ever compare yourself to a grocery store chain. I was in charge of a Walmart bakery, and all the cakes are frozen and designs are pre designed. Your level of work should not be compared to a grocery store at all. Remember that you are making your own cake, icing, etc. You are doing unique designs, not just a cookie cutter cake you can get any where. You have a talent, so price accordingly. =)

Jillycakes ...

This whole “blog/exchange” was so helpful to me!!! Thanks!! Pricing can be so intimidating ….especially in the beginning:-)