How do you price your cakes?

This is not a parenting post but one about my other love – baking and cake decorating.

If you are a home baker who bakes at the request of friends, how do you determine your pricing?

I find it really tough to answer this question. Sure I did my rounds of checking out the cakes at the bakeries but I can’t do a direct comparison because what I’m doing is customised cakes. These cakes will inevitably cost more than what are available in the usual bakeries simply because they are made upon specific request. Where sugar art is involved, the cake will definitely be priced higher because of the time invested in creating and beautifying the figurine(s). The ingredients themselves already cost more, what’s with artwork?

I pen down this post because this is a question that is often posed to me when I’m teaching cake-decorating classes. I have no definite answer but what I am certain is that we must cover the cost price of the cake which includes the ingredients used, electricity bills, transportation cost to purchase the ingredients and materials. Cakes that involve sugar art like fondant-covered cakes need a cool environment and that is when most bakers would switch on the air-conditioner just for the cakes. Do we need to take that cost into consideration? I definitely think so!

What is commonly overlooked are labour cost and the time taken to design the cake. How would you pay yourself as you spend time creating the cakes? But sadly, these are often overlooked by those who order cakes.

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I have been teaching cake decorating lessons for almost a year now and each time after the class (especially so for sugarart lessons), the participants will always tell me that it is so time consuming and involves so much work that they now understand why such cakes cost a bomb. More recently, one participant started to bake cakes that require sugarart for others and she would often utter, “It’s not worth it. I spent so much time and effort in creating those cakes but the customer doesn’t want to pay that kind of price.”

My advice to them? Don’t accept such orders. I mean unless you are okay with it, you are better off not accepting the order. In the end, you have to be happy doing what you love and not grudgingly.

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Recently, I made this 6-inch x 3.5-inch Devil’s Food Cake using Valrhona chocolates. How much would you have priced it?

I guess for me, I want baking for friends to be a passion and not a business venture. Baking for {much} profit kills my love for baking but yet at the same time, I do have to cover the cost and maybe get a little bit of return so that I can continue to practise my craft and to buy those materials (hah!). Then again, I think I have underpriced most of the time. Maybe I should look into my pricing again?

If you find yourself at a loss when it comes to pricing, here are some helpful links that were searched by the dear hubs:

– http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge

– http://www.veenaartofcakes.com/pricing-your-cakes-a-beginners-guide/

– http://www.craftsy.com/blog/2013/09/pricing-cakes-like-a-pro/

– http://www.celebrate-with-cake.com/p/price-guide.html

Hope this helps.

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