Home made cake business

[Doughnut123]

Hi, I would very much appreciate any advice on how to price my home made cakes please. I love baking and have sold some of my cakes before, but I find pricing very difficult. After costing all the ingredients, how can I make the cakes reasonably priced , but still make a bit of money?If I charge myself £5 per hour for the time taken making the cakes, I still should add on a percentage to cover fuel costs, transportation etc. It just can end up really making the cakes expensive. For example, I have an elderly customer who would like me to make her a simnel cake. The cost of the ingredients (for a 7 inch cake) , is £10.17. If I add on my time, it would be £20.17! I still haven't factored in the fuel cost or the transportation cost, but I can't ask for that much money for a cake like this, especially when it's for an elderly customer.
Any thoughts would be very much appreciated. Thank you

I think you've hit in the reason why many cake businesses make no money! Usually the prices that you would be able to charge would not make you a profit.

Van you cut costs further by not buying ingredients at retail, but buying them wholesale? Or using cheaper ingredients? Or making them more quickly and so needing to assign less time cost per cake? Or finding a way to justify the higher prices?

Thanks Spottedzebra, I do buy ingredients wholesale when I can, but it doesn't make that much difference to the cost, I don't think. It's just one of those things that is more a labour of love than anything. And the thing about making home made cakes, is that you want to use quality ingredients. I always use free range eggs and I make my own mincemeat and almond paste. I can customise cakes , as well. All of which, means that the cake will always be more expensive than a mass produced one.

You either have to reduce your costs, be able to make more (so your £5 ph to yourself goes further), or to be able to sell your cakes at a higher price.

That means, as Zebra says, buying cheaper ingredients in bulk.
Or finding a way to mass produce so you're making 10 simnel cakes at once (which will no doubt mean an investment in equipment)
Or find a person who will buy a simnel cake for £25.

If none of these options work... then you're not going to make any money. Don't be fooled by the number of bakers around - most of them are either doing it as a hubby-funded-hobby or aren't making things from the best ingredients. The last two birthday cakes we've bought for DCs I would class as cheap cakes, very nicely decorated - do you know what I mean? Basic ingredients covered up with a bit of flair.