How Much Should I Charge For Cakes | Pricing The Cakes | Beginners Guide

After I started my new venture, friends and fellows who were also interested in this home-baking business started shooting out a few questions to help purse their interest. And one repeated question they ask is, How much should I charge my cake? I thought that putting up a post would be easier for everyone else out there too, who are looking for an answer!

Well, there are many factors to be considered here. Being a little reasonable will make your customers happy but at the same time your hard work should be paid! Making a cake is never a cake walk! Certain cakes are very laborious and under pricing your cakes will only lead you to frustration; it is like kicking off your efforts to the bin. After all you are working for profit right? And at the same time you do want to charge inconsiderately! 




Here are the set of things you must consider!
  1. Ingredients used - Add up the cost of all the ingredients that you will use in you cakes. For example flour, eggs, sugar, milk, cream, butter, coco powder, essence, fondant, icing sugar, chocolate compound, colors used, etc. Always do not discard your grocery bills, note down the cost of the ingredients in your handbook and create a standard price for the basic cakes you make, so that it will be easy for you to quote when customer asks you. 
  2. To the above cost add up the cost of Non-edible things you will be using. (Like butter paper, cake boxes, cake boards, cupcake cases, cake stands, pillars, cake dummies etc)
  3. Consider those electricity bills too! 
  4. Effort - This one is something that should be considered. Any baker would know how much hard work one puts into each and every cake and for certain cakes one has no idea how much work goes into it. The extra care, the intricate work, the time invested is more important than any other thing I've mentioned above. 
  5. If you do deliver cakes include a considerable amount for that too, considering the mode of transport, fuel cost etc. 
Make it a point to fix or set a standard price for your basic cakes according to the weight and size of the cakes. And after the customer finalizes the theme and other things, add the additional cost that would incur. This has been my way of charging the cakes and I have found it easier for me. 

Things not to put in your mind while pricing. 
  • The near by bakery might offer cakes at much lesser cost than you do! And you might be forced to lessen your price accordingly! No that's not an advisable thought. You make customized cakes and offer something special that bakeries don't. The ingredients you use can never be compared to the ingredients that those commercial bakeries use! So try not to compare or under estimate your work. 
  • Similarly never compare your work with the other home baker in your locality. Remember each one's work is always unique so try not to compete in pricing with that baker. Do not price your cupcakes Rs.100 each since he/she does so! Create your own identity even in pricing. Your customer will be yours at any cost and the ones who respect your work would not argue with you for the pricing nor will compare your work with the other.  
  • Don't think about earning a big profit from a single cake. Be very considerate when pricing. 
  • Try not to cut down cost by using less quality ingredients! Never compromise on quality. 
This is just a basic idea of how you can price a cake. If you have other ideas please do share in the comments section below!

May the work of your hands be blessed!! 
"The LORD will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none." -Deuteronomy 28:12

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