This week we’re going to talk about 5 quick pricing tips to help you if you have a cake business. This can be super hard if you’re new to business and the cake world, or really aren’t confident with what to charge and how to do so….
#1 Work out a SIZING GUIDE (ie: spreadsheet) that has each size cake (I use a separate one for rounds and squares), that has the amount of serves in each specific size for both dessert and tea & coffee serves. I do this for single tiers and also combinations of 3 and 4 tier cakes so I have a guide for tiered cakes as well.
Apart from showing you immediately how many serves are in one particular sized cake, this can give you an indication of what your costs are for each size and combination…
#2 Your pricing is based on the amount of serves PLUS your cost of ingredients and supplies for that particular size cake – that means dry and wet ingredients, boards, ganache, buttercream, fondant, etc.
You need to know your basic costs of ingredients… so grab your grocery or wholesale list and get to it! You should also know how much of your recipe makes up each size – eg: 1 of my white chocolate mixes will make a 6 and 7 inch round cake comfortably, but I need to make just over one lot to cater for an 8 inch cake.
#3 Don’t forget about HIDDEN COSTS like your electricity, water, insurance, commercial rent, etc… all these things contribute to your costs, so you have to put these back into your pricing by working out what your average weekly costs are based on previous bills/ statements. You also have things like washing up liquid to wash up your dishes, and laundry time to wash tea towels, aprons, etc. This is one of the reasons to never undercut yourself, as you’ll soon find out that you’re not making ends meet when you have no money for your bills and/ or rent!
#4 Your skill set, self-worth, training, experience and work capacity also come into play and contribute to giving you an hourly rate (which should be way more than $5-$10 people!!!) For this rule you also need an approximate number of hours you’ll be working on the cake based off previous experience/ approximate estimate, and an idea of what you’d like to earn once costs are taken out – base this on the general hourly rate of a baker/ bakery assistant as a starting point if you’re not sure, and go from there.
I will go into this side of things much more in the in-depth pricing tutorial, and Live FB Class coming soon.
# 5 Make sure you also base your total price on the individual cake you are quoting on at that time. Use your basic pricing guide and add onto that with any extra costs like sugar flowers, piping, gold or silver leaf, sculpted cakes (research, specs), etc, etc. DELIVERY is also another cost that needs to be added on to cover your petrol and time – don’t forget that one!
As I mentioned, I am going to do a really in-depth Cake Pricing Guide in April, so if you need some more tips and advice, plus practical notes and spreadsheet ideas and templates, then stay tuned for the tutorial release next month, and purchase that tutorial to relieve your stress and worry! I don’t claim to know everything, but I’m sure I can give you some great tips and ideas to help you out and stop you struggling as I’ve had my own businesses for the past 18 years!
Remember that you can get all of my tutorials, fb live chats and classes all for free when you join the Cake Craze VIP members group for $75/ year. I’ll pop the link here for you just in case;
If you missed my vlog stating the basic 5 tips, here it is!