How do you calculate the cost of baking and decorating cakes?

Question

I am thinking of making and selling cakes and other baked goods as a little part time hobby/job. It is something I really love to do, but Im not experienced in the business part of it all. Thanks!

Answer 1

maybe take a business class for the basics..

be serious about any new business.

get a response from any and all who try your goods.

find craft fairs locally, or bake sales, or anywhere you can rent a table, sell your heart out, and leave comment cards if possible..  

add up cost of ingredeint made for a particular item. say, brownies.

what is the total of ingrediants and supplies, and the time to cook?

divide that by how many pieces of brownie. should be reasonable.

then sell away.

Answer 2

The best way to get an idea of what others are charging is to call various places in your local area. This research will give you an idea of what the market is willing to pay. When you call, you simply want to ask, "What is your price for X?" Then you need to record it on the cake prices research form.

Here are a few cake products you might want to get pricing for:

· A sheet cake

· A birthday cake

· A pound cake

· A wedding cake

Step Two: Calculate Your Actual Cost Per Cake

After completing step one, you should have a better idea of cake prices in your local area. As stated earlier, you'll only use this information as a reference because your cakes are unique and what you charge is based on your time, ingredients, and expertise. However, you should price your cakes according to your area. Here are some things you need to consider:

· Wages

· Housing

· Average annual income

Are things higher in your area than most other places? If so, you need to charge more. Do people on average earn higher salaries? If that's the case, you need to charge accordingly. Do you get the idea?

The next thing you need to do is calculate your actual cost per cake. This includes all ingredients and packing materials such as cake boards.

Most people charge 3-4 times what the cake cost to make.

Here's another way to come up with your prices.

If your goal is to make $25 on every cake, simply figure your total cost per cake and add $25 to it. This strategy works well for birthday and special holiday cakes.

Wedding cakes are usually sold by the slice and your price is totally up to you based on your time and expertise. I've seen wedding cakes go as high as $7 per slice.

http://thepartyworks.com/article.php/art...

Answer 3

You have to add all your costs:

baked goods -- flour, sugar, etc.

electricity and space used

what is your time worth?

You also should do some comparative pricing of the item you are making to make sure your price is competitive.

If you are going to charge $50 for a cake you might want to make sure that is a price people will pay.

Sometimes the price it costs to make something does not add up to what a customer is willing to pay for the product -- it is then up to you to decide.

Answer 4

rule of thumb in a bakery is 5 time what it cost you to make it, says bacondebaker