Pricing cakes
Just wanted to say a few things about cake pricing. Every day it seems a row blows up on one of the cake decorating Facebook groups about pricing. Not ours obvz, we're not aggro like that. It makes me really cross when a cake maker says they've been upset by a customer (or worse, a friend or relative) who has questioned or complained about pricing. Today, a poor baker had to explain to her COUSIN why she had factored in the price of electricity to make her a cake. FS.
When I started offering buttercream wedding cakes I was the only cake maker in London to do so. Pricing was really difficult as I had nothing to compare my work to. I learnt the hard way and made hundreds of expensive mistakes.
So a few things to think about:
Never break down the cost of your cakes. The price is the price and that's the end of it. Don't get into conversations about the price of butter, chocolate or anything. You wouldn't go into a sandwich shop and say 'hold on what on earth are you paying for your bread, this is a joke'
Never respond to requests for a 'reasonably priced,' 'cheap' or 'inexpensive' cake. Making cakes for people who already think this is an overpriced sector is not fun. Generally they'll quibble about design and quite often they'll make an unsubstantiated complaint about the cake after delivery or collection and pursue a refund.
Similarly never reduce your price after quoting. 'What's you best price?' is a question for car leasing companies not creatives. Don't budge.
Don't adopt the outdated mindset that buttercream cakes are cheaper than fondant. During the Jurassic period, wedding cake makers published two price lists - one for fondant cakes and one for buttercream. The buttercream variants were cheaper because they were basically coated in combed or rustic plain buttercream and dressed with fresh flowers. NOT elaborately piped and painted beautiful florals, embroidery or whatever your thing is. It may be quicker to pipe a rose than to model one with gumpaste and let it dry and paint it etc, but think about the coverage. When did you last see a fondant cake completely covered in gumpaste flowers? Ugh.
Similarly outdated is the 'double it' pricing model. How does doubling the price of your ingredients and materials indicate the desirability of your cakes or your own skill level? Ridiculous. Work out your costs per average cake. I weighed bare, filled and decorated cakes for each of the tier sizes I offer so I know exactly how much my buttercream costs per tier. It's not difficult to break down the cost of the cake itself; add the board, box, dowels, a nominal amount for colours and extracts, electricity and so on. These are your bare variable costs. Add a margin of around 35%.
To your variable costs you need to add a profit level based on your needs. What do you need to earn a week/hour to build a business? Do you plan to grow it into a cake school? Would you like to have a shop? Be ambitious not hand to mouth.
Factor in different hourly rates for different tasks. Washing up is only going to earn you around £10, horrid as it is. Skilled decorating could earn you £40 an hour if you have trained for along time and are very accomplished. I'd put sketching in this bracket as well. Baking probably falls between the two.
What are the demographics in your area? Cake prices vary hugely across the UK and the US. Wealthy populations not only have more money, they tend to have less time, so as a cake maker you have a highly valued commodity if this is your market.
Obviously look at other cake makers in your area and their prices. If they're established and successful, their prices must be in line with local expectations.
DON'T get a reputation for being a cheap cake maker. It's impossible to shake off. Present your cakes and yourself professionally from the off. Get a logo, website, Instagram account, branded ribbon, use good quality boxes and drums. Post brilliant pics. Be confident and opinionated. Make friends with the top florists and venues in your area and have loud conversations with. them on social media.
Work on your style and point of difference. Customers will come to you because they like your cakes. And they'll pay into your brand.
Ask me anything about this. It really bothers me that cake makers are selling 8in birthday cakes for £30 or less. Just because it's a brilliant job doesn't mean you should do it for nothing.
