To ask how much you would expect to pay for this cake?

[Badger84]

So I've started up a cake business and I'm struggling with pricing. There is quite a lot of competition in my area so want to price competitively but also want to make a profit! Some of the people I've quoted have been fine with my prices, others have scoffed and said far too expensive. I've attached a picture. Can you tell me how much you would expect to pay? I won't tell you how much I would charge to influence you

OP I am curious what your costs and overheads would be for a cake like that? How much profit per hour do you actually make?

The cake looks wonderful I'm just worried you're setting your price too low to make any money from your business

I run a cake business. I'm in the West Midlands and I'd charge £50 for that design. It's quite a simple design.

I once had a friend who did a course on cake decorating and she was advised that you price your cake based on the whole cost to make it. As in although you used say half a bag of flour you price in the full bag of flour and the full block of butter And the cost of the cake tin etc. I'd work out your annual electricity and gas bill and divide it downtill you get an approx hourly rate also. And divide your insurance to a daily rate. X

well I paid £50 for this one for my sons 18th, but that was 6 years ago...I would say about the same as that for your one

£60

About a tenner. Can't see what makes it stand out from supermarket cakes.

Last cake I made, admittedly a large (10") fruit cake, cost me just on £70 for all the ingredients, decorative odds and ends, board, box etc. I didn't even bother costing the electricity to bake it or my time - it was a gift for a family member. I used to make for other people and was happy to do it at cost since it was a hobby, but people assume you are buying at the same cost as a big commercial setup, rather than paying regular supermarket prices and using good quality ingredients rather than bulk buy stuff. Also, making adjustments to the recipe to allow for likes/dislikes and allergies, at very little, if any, extra cost. And for that people wanted to pay the same or less than a supermarket cake. I now only make for friends and family and only if I am giving it as a gift.
I think your cake is lovely. Don't know what you'd be able to charge though as I just haven't ever bought a personally decorated cake. Good luck with the business.

£40-£50. It's lovely OP, FWIW.

I charged £95 for this recently.

I paid £40 for a similar cake.

If you havee started a business could you please actually take the time to price it. Properly.

Ingredients
Electricity
Board/box
Delivery
Insurance
YOUR TIME inc researching/design/time spent getting ingredients/ invoicing/delivery/consultation etc

Otherwise it's NOT a business......

About a tenner. Can't see what makes it stand out from supermarket cakes.

The icing alone could cost that. It's a totally personal design, made freshly with proper ingredients. Plus it would take a fair amount of time to make.

50Bales you need your eyes tested. The cake is going to be a much better quality than a supermarket one!

£60

maybe £45 if it was a new biz

WTF is with you guys saying you'ld pay £20! you expect people to work for you for less than minimum wage do you?

No more than £30, I agree that it is similar looking to a supermarket bought cake.

Don't question yourself over pricing OP, just because a few people turn their noses up and compare it to shop bought. It's amazing how some don't understand the difference between something mass produced and something tailor-made. I'm a carpenter and have a number of people over the years surprised at quotes I've given as they were expecting something comparable to Ikea! No, you're getting something of quality which is handmade and tailored to your specification... There is nothing 'wrong' with either product, but they are not the same as is reflected in the price! As others have said, people can hugely undervalue your time.
Price at a figure that is the sum of your time plus materials (and profit!), rather than picking a value and trying to make the materials and labour work IYKWIM.

For the value of your cake, I wouldn't know where to start as I've been a 'lovingly bodged together' birthday cake maker, so have never bought one handmade. That said, I wouldn't raise an eyebrow at £60.

The reason I dont make cakes to sell is because I got sick of being told that "its only eggs butter and flour!!!"

And icing, decorations, TIME.......

I think people who have seen first hand the work that goes into it, dont mind paying for it. Then you have the ones who have seen a Disney Princess creation for £15 in Asda and think that you should be able to do it for the same price, they are the ones who say "Oh but its only...."

Do children really prefer/appreciate hand made quality? If there's a market then price accordingly, but I wouldn't pay the difference for cake that probably won't be eaten

If you havee started a business could you please actually take the time to price it. Properly.

This is the correct answer!

I was freelance for years — it took me a long time to realise I was hugely undervaluing the work I was doing.

If I were you, I would cost this out and then build in a good profit margin: maybe 100%? Ultimately I'd probably end up pricing at the top end of the amounts on this thread. Say £100?

It's really easy to reduce your prices if you get feedback they're too much. But it's hard to increase them. Would you rather charge £25 a cake and bake 40 a month for £1,000, or charge £100 and bake 10?

One last thought: if all your customers are accepting your price without question, you are definitely too cheap!

Good luck. Your cake looks lovely BTW.

50Bales

Probably not but I prefer them to eat something thats been made with quality ingredients and by a local worker where the profit (such as it is!) is going in their pocket and not to the shareholders of major companies.

I agree, pyong plus the supermarket cakes don't taste very good and have preservatives in them. The shelf life is worryingly long as many aren't even made with eggs or dairy.

I don't think it's necessarily that people don't appreciate how much time and effort is put into baking cakes, I bake myself, it's whether or not you would pay such a large sum for a child's birthday cake.

I would rather spend the money on something else. Say a day out or a visit somewhere.
That's why I said £35.
I might not be able to buy this cake from the op for that amount but without sounding rude, I personally wouldn't pay more.

I just don't place that much value on a birthday cake.

Fuckoff I agree. They dont taste nice, they are very sweet and artificial tasting, my kids much prefer homemade. Hadnt even thought about the shelf life, but you're right. I make sponges to be eaten the next day as they dont keep nice longer than that. Heaven knows what is in the crap from Tesco!

£80-£90,it's a gorgeous cake OP well done.

Where I used live in the UK, that size cake was £100/£125. I do think that's too much but would say around £80 is about right. Your time , ingredients etc.