I price my cakes with a per serving price. That price includes a smooth finish, and basic decorations (swiss dots, simple piping, ribbon, etc.) For more intricate designs (detailed scrollwork, lacework, sculpting, etc.) I determine the number of hours it will take me to complete and I charge an art charge based on the extra decoration. So a basic cake for 100 would run $375 (3.75/serving) and then 5 hours of piping at $20/hour would add another $100 to the price of the cake. I used to charge a small ($5) fee for each tier over 2, but I stopped doing that as I got better with working with tiered cakes. I’m very upfront with the customer about this, and if I underestimate the amount of time it will take, that’s my fault – I don’t charge the customer any more. I wore a stopwatch a lot in the early days to help me determine how much time things took; Now I usually get the time down really close.
jchuck is right that the market in your region will determine the prices you can charge, but that doesn’t mean you have to make “champagne” cakes on “beer” budgets.
Jenniffer White, Cup a Dee Cakes - http://cupadeecakes.blogspot.com
