How much should I charge for cakes at a bakery?

This guide has been in the works for a long time.I don't know how many times I've been asked how to price a cake.

It takes me back to the beginning of my cake journey when I get that question.I didn't know how much a custom cake would cost when I sold my first one.

I didn't know how much cakes cost to make, and I was comparing my cakes to grocery store prices.

I began to recognize the type of people I wanted to bake for when I valued my time and effort.I under charged my cakes for a long time.

The main reason I am sharing this post is to help you value the hours of work you put into your custom cakes and charge the right price for them.

The formula below can be used to calculate the price of a custom cake.Wedding cakes are usually priced by the number of serving, but I use this for smaller custom cakes.

Factoring in your direct and indirect costs is what it comes down to.You should value your time.

This concept also applies to homemade cookies and cupcakes.It works for any baked good that a home baker makes.

The number of hours you expect to spend on a cake should be taken into account.The price should be built into the request for an intricate cake topper or delicate sugar flowers.

That is where it gets difficult.A client might ask for something that you have never done before.You might not know how long it will take or how many times you have to make it.

You just have to make the best estimate you can, and hope that you are close.Some cakes will take longer than expected.It all averages out in the end, that's what I try to tell myself.

I only consider active time for this part of the equation.Allowing your cake layers to cool is not included in this.

It can be difficult to figure out your hourly rate.It is easier to figure this out if you are further along in your cake journey.

I was grateful to have cake orders when I first started.I was not as confident in my skills.It seemed crazy to pay myself for each cake I made.

You know what?You would get paid an hourly rate if you worked in a bakery.If you feel like you are still learning, you should pay yourself the minimum wage.

You can take your experience and skills into account when adjusting your rate.As you develop your abilities, you can increase your rate.

The cost of your ingredients is the second part of my equation.Direct costs are what these are considered to be.

You use the ingredients to make the cake.You know how much it costs to make a cake because you track these.

It is easy to calculate the cost with a little bit of leg work, because most of us have our list of go-to recipes.

I created an excel spread sheet to help me quickly calculate the cost of my cakes.I think most bakers enjoy being organized and precise, even if they don't love numbers as much as me.

The file does all the hard work for you if you create a costing sheet.

I made a master sheet of everything I buy for my cakes, from butter to freeze-dried strawberry powder.I put a price column next to my ingredients list.

You don't need to know how much salt is in a container.You need to know how much a cup of flour is.A standard portion size for each ingredient is shared in the next column.

Some time is needed for this next step.To figure that out, you have to look at the ingredients in the container or bag.A small bag of sugar contains 8 cups.

You are golden if you have made it this far.You can link the cost per unit of each ingredient to your recipes.

I calculated the cost of each of my batter and frosting flavors after I made a tab for my most popular cake recipes.

I know this is a lot of work, but it is worth it.You know how much money you make on each cake you sell.

Variable costs can include cake boxes, cardboard cake rounds, parchment paper, or even specific cutter or mold that you have to buy to complete a cake order.

Fixed costs include rent, electricity, and big baking purchases like ovens or stand mixers.

Most of us home bakers do not rent out a separate space, but we do invest in baking equipment.

You should calculate the depreciation of the tools you use, and add them to your overhead.

You should include the costs of making cakes in this way.It is important that you consider these types of costs in your pricing.

One of the biggest mistakes home bakers can make is trying to compete with grocery stores.I think we have all done it.

People who run to Walmart last minute to pick up a sheet cake are not the same people who are reaching out to you weeks in advance to create a custom cake for someone special.

Baking in bulk is possible because grocery chains use cheaper ingredients.Special flavors and beautiful decorations are created using top of the line ingredients.

In 2016 my average rate for an 8-inch layer cake was $100.People are willing to pay a pretty penny for custom things here in NYC, and I had more demand that I could handle.

People spend a lot of money on cakes.Some people will walk away if your rate is high.You are probably not charging enough if no one tells you that you are too expensive.

It is ok to ask people in your area how much they are willing to pay for a custom cake.

If you reach out to other custom bakers in your area, you can get a read on prices.It is a great way to network.

It is important that you do not try to undercut other local bakers or cake shops.You want to support your fellow bakers in the cake community.

If you only get a cake order because it's cheaper, you might not get the clientele you want.If you want to be a repeat customer, the type of person who shops around for the cheapest custom cake they can find is usually not you.Trust me on that!

If you set your prices too low, it will hurt everyone in the end.

Each cake maker has their own style and offerings.You will make more cakes if you take a bit of time to develop your style.

When I got a request for a fondant intensive cake, I would happily refer them to my other cake friends who specialized in those types of cakes.

I would send people to other local bakers if my cake schedule was full.

When the same thing happened to them, they returned the favor and created a great relationship with all of us.

I made a mistake in the beginning.I didn't have to pay for delivery.I don't want to say that out loud.

If someone wants you to deliver a cake, always charge a fee.You can either charge based on the distance or have a fixed rate.

You should consider the cost of gas, the wear and tear on your car, and the value of the time it takes you to deliver the cake.

When friends and family ask for cakes, what do you do??

It is a personal decision and there is no right answer.I have heard of bakers doing a lot of different things.

Make it very clear in the beginning what you are going to do.Most people understand how much money and time it takes to make a cake.

I used to make my friends birthday cakes for free, and always looked at it as a gift.I never felt pressure to bake for them because they never asked or expected me to.

A lot of people are in different situations.I recommend setting ground rules for people who expect you to drop everything and make elaborate cakes for them.

If you have any questions I didn't answer, please leave a comment below.

Thank you for the short lesson, I need it.How do you calculate the overhead calculation of 20% or 30% of the total at the end?

Hi!I liked the article.I have had some great clients who have been willing to pay good money, but I still think I could better adjust my pricing.I would love to have access to your excel sheet.

I will make a cake for my friends and family if I get to design it.They can pay full price if they don't.They all use that idea to their advantage.

I want a true blue color in buttercream frosting or ganache, but I don't know what food color to use.Thanks.

Thank you very much for the information.My problem with pricing my cakes has been solved.I owe you one.Thank you.

I work as a content creator and baker in NYC.I love creating stunning desserts that look just as good as they taste, which is why I'm obsessed with sharing tried and true recipes.