By Michelle Anderson
Cake Decorating Expert
Cake decorating is a hobby that can very easily turn into a business opportunity
if you have talent and passion. You might start by making cakes for
friends or family and soon people you aren’t related to ask you to make a
cake for an event. Those first cakes are usually done for the cost of
the materials and a bit thrown in for time or delivery. Eventually
starting a cake business might seem like a viable option as more and
more requests for your beautiful creations roll in. Now you have to look
at what to charge for your cakes to be competitive and make money.
Without looking at what you need to make in your business to cover
overhead and other expenses, there are some factors that will come into
play as you quote for your clients.
Cakes are usually priced per
person or per slice. Slices can range from a couple dollars up to $15.00
or $20.00 depending on the cake. It is a good idea to have a base slice
price for a plain naked slice with no embellishments and add onto it as
the client tells you what they want on the cake.
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In some cases items like gum paste flowers or
fresh flowers are priced separately. Some of the factors included in
this calculation are:
- The size of the cake and construction
- Number of layers
- Fillings, frostings and glazes
- Type of decorations, whether they are handmade or simple
- How labor intensive the decorations are such as piping intricate designs or creating gum paste flowers from scratch
Where
you set up your business will often be a consideration for what price
you charge for your cakes. If you are located in a large city such as
New York, London, Sydney or Los Angeles, you can usually charge more for
your creations. Smaller towns cannot support hefty cake prices because
the cost of living is lower so products are expected to be less
expensive. This does not mean your cakes are not worth big city prices,
it just means you have to be aware of the difference. Whether you are a
larger more established designer or a small bakery will also be a
factor. If your cakes are delicious but you do not specialize in fancy
cake designs, than your cost per slice will probably be less. If you
have a unique skillset or can create fabulous sugar elements, you can
charge more.
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When you set your pricelist always be a wee bit
flexible for clients who do not have a huge cake budget. You can suggest
cost saving solutions such as making a gorgeous small cake and having
sheet cakes in the back to cut up or making an impressive tiered cake
that has several Styrofoam layers instead of cake. There is always a
solution to help make your cake design and consult a positive experience
for you and your client.
source: about.com
