Pricing your Cakes as a Home Baker
The most important thing to remember when pricing your cakes is that no one else can bake a cake like you do. Therefore, what you charge is totally independent of what other bakers are charging. However, it is important to research what is going on in the market with others within the cake world. This information will help you set the best value for your cakes and the time that you put into making them………
Step One: Call local grocery stores, bakeries, and home bakers
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 ????” Call around a customer inquiring about an actual cake so that you can get an idea of what they are charging! Its a good idea to get an idea for cakes in Buttercream as well as cakes decorated in Fondant (Sugarpaste)…..then you need to make note of all this info that they give you on paper so that you can get an idea of what others are chargin
Here are a few cake cakes you might want to get pricing for:
· A typical sheet cake (1/4 sheetcakes are the most commonly used birthday cakes in most areas)
· A special occasion cake…. say for example an 8 in round cake in buttercream with icing flowers on it
· A wedding cake –Per serving pricing! Ask what their pricing is for a round wedding cake iced in buttercream for 100 people…… some may give you a base price or a per serving price!
Step Two: Figure out what Your Actual Cost Per Cake is….
For a typical 8 in birthday cake, a sheet-cake and then a tiered wedding cake….
This should have give you a better idea of cake prices in your local area. As I 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 your expertise.
However, you should price your cakes according to your local area. Just because I may be able to get $6 per serving for a wedding cake does not necessarily mean that is what the local prices in your area will be….to be honest I personally feel that there should be a minimum base price that is universal in the U.S. for things such a sheetcakes, a typical 8in round birthday cake and so on, but cakes can be customized soo many different ways that this would be tough to accomplish.
Here are some things you need to consider for your individual local area!
· 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, boxes and so on, now don’t forget your dowel rods, the paper you cover your boards with , and ribbon that you may use to trim your board, the glue used to glue the ribbon around the board…..sometimes you don’t realize all the things that are used to do a cake and these things all add up especially these days!
Most people charge 3-4 times what the cake cost them 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 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.
As you make the decision for what you’re going to charge for your cakes, you need to consider the factors that make your cakes unique. Although, you researched what other bakers charge, their prices should not be the basis of how you set your prices. To put it plainly, they are not your competition. You must think of yourself in a separate class of your own. Here are a few things that could make you different:
· You may offer original and customized designs for your customers. You take the time to find out what the client wants and you come as close as you can to what is agreed upon. Unlike some bakeries and grocery stores who offer mass-produced, templated cakes with a few icing flowers and a border in different colors.
· You may use only family recipes with your cakes. This is why your cakes are soo unique. No one else uses your recipe.
· You may offer the best ingredients. Some even bake their cakes with the freshest ingredients, some only using organic and some of them are shipped directly from the manufacturer because you can’t get them in stores. For example: I use the real Vanilla Bean in my recipes since the taste is soo much better, and when I was selling cakes all the time everyone raved about the fresh vanilla taste in my icings and such.
· You may deliver and set up your cakes. This is a valuable service for those who are planning events such as weddings, anniversaries, and large birthday parties. Be sure you are charging a delivery fee to deliver the cake….also if you are doing a wedding cake and you are asked to cut and serve the cake at the reception that you are charging a fee for this service as well. (Some do ask the decorator to cut and serve but it is up to you whether you want to do that or not)
You offer the best customer service. You listen to your clients and follow-up to make sure they’re satisfied. You build relationships with those who buy your cakes.
There is no one formula to use when pricing your cakes. Every area is different. However, as a cake baker, you must charge what you’re worth. Regardless of your price, if you bake a great tasting cake and love your customers, they’ll become raving fans and beg for more.
You must believe in your decorating ability if you are going to get fair prices for your cakes. If you don’t believe in yourself its tough to expect anyone else to. If you tell yourself you could never charge as much for a cake as so and so, well then guess what you will never get a fair price for your creativity and hard work! You must know that your cakes taste great and look beautiful, then your abilities will warrant being paid a fair price. Have faith in yourself, and your abilities if you have a tough time with this practice everyday by saying people love my work and are willing to pay for my creativity, this may sound weird, but it will help I have had to do this at different times in my life. By doing this everyday you will build your self-confidence and you will come across as a person who deserves to be paid very well for their work.
When someone gives you compliment on your cakes that should show you that your cakes taste great and look beautiful therefore you deserve to be paid for your hard work. Most of us are not used to getting compliments and when we do we are not sure how to take a compliment. Next time someone gives you a compliment remember to politely say, Thank You, I do appreciate it. And know that YOU are a great decorator.
We must remember as home bakers that we work very hard on each cake we create. When you turn on your oven it costs you money, when you are decorating a cake you are not able to spend that time with your family. You should be paid for your hard work. When we hire an attorney or anyone else to provide a service for us we don’t tell them, well you know I could go down the road and get a cheaper attorney, like people say to us often times regarding walmart and other large retails grocery stores. You must realize with every cake your creating it costs YOU in one way or another, maybe the costs are minimal however your time away from your family is something you will never get back. Therefore make sure that you charge for your time to create those one of a kind cakes that most cannot purchase from walmart or other local grocery stores. Just a little something to think about the next time a friend or family member wants a free cake from you!!
What I have done in the past to price my cakes is, called around and got local prices especially local home bakers. I priced my cakes just under theirs in the beginning, and rightfully so, I could only do the basics and honestly was still working on perfecting my buttercream work. Once I gained more experience I priced mine just above theirs, because I could create cakes and do things that they did not such as 3D cakes, my figurines, intricate sugar flowers (which are prices individually from the cake) and so on. Grocery stores do not even come close to the kinds of cakes I can now do so there is no debate with the pricing of these kimds of cakes,
Realize you may get a lot of ohh wow, your prices are too expensive and is there any way that you could give me a discount, I want to do this for my son’s birthday and my car broke down, now I have to get it fixed and so the stories continue……But hang in there you will find those who are willing to pay what you are worth because they recognize the value in the work that YOU do!! Don’t let it get to you, it is not a personal attack on your abilities, people are so used to going to Walmart and paying for a cheaper cake, but if you can educate them and show them how your cakes and your expertise is different from Walmart, people will begin to see the quality that you can offer them..
The world of cake decorating has changed sooo much over the past 10 yrs, now we have television shows devoted to showing the aspects of creating edible works of art. The days of just a few yellow, buttercream roses on a sheetcake are almost a distant memory, people now a days call and say I want the cake I saw on “Cake Boss” thats fine I have told them but I must let you know that the cost of that 3D cake will cost approx. $2000 and they nearly have the big one, lol so I resuscitate them from the You’ve got to be kidding me, for a Cake…. by explaining some of the process it takes to create such a cake , and the time it takes which can be up to 2 wks to pull it all together. It really is about education as I have said before. Even though they see it on TV they do NOT see the entire process, they see the cake being started and in the next segment it is finished…Oh how nice it would be if it were that easy, right….in addition the Cake Boss has several people working on that cake, but when I do a cake it’s just me, myself and I!
FYI….For the past 6 months I have been working on a book for cake decorating that will go into much further detail for pricing cakes, fondant figures, sugar flowers, and more. Included in the book are cake secrets that most are not willing to share with you, as well as info regarding starting a cake business, the needed contracts, forms and many other details that I used in my cake business. Its a must have, full of valuable information that is worth its weight in gold. I hope to have it finished within the next few months. I will let you know when!!
Aa always I pray that each and every one of you are pricing your cakes so you make a profit and will begin to prosper in your business, I wish you the best and may you realize just how valuable you are to the world of cake decorating!!
All my best to YOU!!!!
Donna
Thanks4this wonderful vote of confidence n info.All the best.Wud ove a copy of ur book.definately stuff I need
Lovely write up. What’s the name of your book?
Ralch, thanks for your nice comment!
Update on my book!!!! Do to an issue during the process of self publishing, the file (which was the original) for the book ended up corrupted and I am in the process of typing some parts over so I do not have a finished copy as of yet (I a sooo sorry to all those who are waiting, I have all the emails of those who contacted me and I will let you know just as soon as I can say it is ready to go)….this is the 2nd time there has been a problem the first time my computer crashed and I lost it all and had to start all over! At times I could just say forget it but I am moving forward with it once and for all. The name that is planned will be along the lines of Cake Decorating Secrets…………(I do not want to give the full title just yet in the public)
Thank you so much for your time and valuable information!! God Bless you and your family!! Gracias!! Muchas Gracias!!
Thanks soo much for your sweet comment Maria E. I truly appreciate your blessing!!
I started making cakes when my kids were little and I could not afford to buy them. I developed a large side bussiness in my small town. I felt bad about charging a lot for my cakes and tried to give everyone a good deal. My circumstances changed and I didn’t have much time to make cakes any longer. I went up so high on my cakes so I could decrease the amount I made. I sold more than ever. I learned one valuable thing. No one likes to brag about the good price they gave for their wedding cake they like to brag about how much it cost them. Little did I know.
Mary,
YES!!! my friend you got it, this is the way it is in life!!!
I just came across your website, and it’s a God send! I have been doing cakes for a few years. It’s still more a hobby than a business, but I am getting orders more and more and am more than aware that I’m not being compensated for my time and energy, which is MY fault because I’ve not given myself enough credit for what I’m doing. People generally want a good deal and when I’ve quoted them a very inexpensive price for a cake that will take me several days to complete, I have often gotten flak or the “wow, that’s expensive…we’re talking $40.00 total for a 3 tier, custom, Micky Mouse cake with fondant on a personalizeed cake board with all the trimmings? Come on! This lady lives in a mansion and wanted to surprise her kids by giving them the cake and a Trip to Disneyland!!! The cake was adorable and very tasty, but she commented that an Albertson’s cake was $25.00! I should have cancelled the order…on top of that, she wanted me to toss in a batch of cupcakes! This is just one incident, and it’s been discouraging to the point of wanting to sell my cake stuff and say forget it, but I do love to create and know I need to institute your advice and believe in my skills and the quality of my product. Thank you so much! Please let me know when your book is out! I hope it’s soon!
Stacey,
please do not let those kind of people that you described in your comment keep you down or cause you to give up!! Consider those kind just a bump in the road and move on around them then forge ahead my friend.. You have been given a gift to create one of a kind creations that soo many would love to be able to do and you need to make sure that you do what you want to do in your heart. these type of people are so typical I have dealt with them many times and it gets to be irritating to say the least, however I made these kinds of people fuel me to go to the next level and do my best so that I could just charge even more for my work since I finally believed in ME. That is the key to everything YOU. When I did this I did not have to deal with this kind of customer ever again. Think about this…you know there are those in the world who will purchase something then you will hear them bragging about how much they paid for it, and lots of them love saying ohh I paid almost $2000 for this Sofa, cause it makes them feel important. Selling cakes is no different than selling that Sofa, its all about the perceived value and this is why I say that you must believe in yourself first and when you do the rest can be corrected from there with your pricing. When you can learn to sell YOU, then you will be able to name your price when you do a special cake for someone. I wish you the best Stacy and know that you will get there my friend, you have what it takes, and the best part is that your doing this as a hobby so you can pick and choose who you CHOOSE to do a cake for and this is what we should all do….we should CHOOSE them instead of allowing them to CHOOSE us! When a person thinks your cakes are too expensive for them, they are correct, this is not the type of customer you want to work with, those are the ones that Albertsons, and Walmarts do cakes for!
I will post when the book is finished….I had to give myself a good pep talk due to having an issue with my book files getting corrupted while doing the self publishing route, so I am now having to re-type some parts of the book. I guess these parts needed to be even better cause I lost those parts completely and have to start fresh. One of those bumps in the road for ME…hehehe
I wish you the best!!!!
This is such a wonderful post. It has really helped me to figure out what to charge for my cakes. When my business starts in january, I now get an idea of the right price to charge, i was so confused before. Thank you for sharing your knowlage. May god and his angels bless your new year.
Dina,
I thank you my friend for your kind comment and your blessings to me! I lift up your business and pray that everything your hand touches will be blessed and that you will have more than enough customers. Most of all I pray that you operate in wisdom when pricing your cakes! Be sure to go through all the comments here on the page since I have added additional info to some of the post when I answer people questions.
All my best to you Dina!!
Thank you so much for helping us all feel positive about our cake work. I made cakes years go but was never positive about my work, always feeling ‘not quite there’ so I stopped for many years. But after receiving some very precious grandchildren, I decided to take it up again still just believing that I could do an ok job even though people told me how talented I was. lol. Then not so long ago, I saw someone complaining on Facebook how she was a ‘Cake Artist’ and was sick and tired of fixing up mistakes by so called Cake Decorators and would we lay off and let the professionals do their job.
My heart sunk. Was this me??? Just a cake decorator??? making mistakes for others to fix??
It’s statements like this that can cripple someone who feels a little less confident and yet does lovely cake work that receives compliments.
You inspire us all to keep going and Ive never yet seen anything but positiveness for each and every one of us who count you as a blessing in our lives.
I can only say “God Bless” you for sharing, teaching and inspiring us to continue doing what we love despite the critics.
Thank you xxxxxxx Gidday from Australia
I JUST BOUGHT A PORTABLE STEAMER FROM CONAIR AND IT WORKS LIKE A CHARM!!! IT ONLY COST ME $10.00 ON SALE! SOOOO KOOL!
Donna
many thanks for your words of wisdom,,I have finally taken the plunge and set up my own cake business, it is so true everyone wants a cake for the cost of the ingredients and if its free even better,,I have spent many nights in cold classrooms perfecting the art of sugarcraft & cake making with many more in the furture,,so its about time to be able to charge for what I believe are works of art,,we are artists if I dare say that and every cake created not only by myself but others are a labour of love..
I do so look forward to purchasing your book,,once agin thank you for giing me the push I needed to set up my cake business
Sheila, I am happy to read that your taking the plunge that is great to hear. I pray that you will be blessed in ALL you do my friend!!
Thank you for your information, it has been very helpful… Please let me know when your book is out..
Thanks for the great info and encouragement. I am a Baker by heart but not by profession, I grew up watching my mom bake (I was always her little helper). When I grew up, I started baking cakes for my friends’ birthday parties and as gifts and such and then I had people hunting me down wanting to order cakes. At first I felt uncomfortable taking orders because I had no Idea what to charge and had no faith in my skills. So I started getting people to buy me the ingredients and I would make the cakes for them at no extra cost. Eventually word of mouth caught up to me and I had to switch over to selling cakes. This was in addition to a full time job at a bank so some nights I basically went without sleep. I decided to leave my home country for University (in Canada) and had such a huge following (many of them were mad at me for leaving) that I turned my small side business over to my mother. This was 5 years ago, she is at the point now where she has to refuse orders. Living in residence and with roommates and such I stopped baking for the 4 years I was in University, now it has been nagging at me so much that I recently started baking again (after the encouragement of many close friends and family). I made a cake for my Mother-in-law’s 50th birthday and now I have people asking me how much my cakes cost. Being in a new country with different currency I am finding it a bit difficult to price my cakes (hence why I am here). Also I have adapted to a more North American style of making cakes which is different from my basic single layer buttercream frosted and decorated cakes which I made back home. I have moved up to doing double layers, tiered cakes and so on. I am always shocked at the high prices that I see being charged for cakes by entrepreneurs in my area but then I am reminded first hand how much work it can be (like pulling an all nighter then having to look all bright eyed and bushy tailed for your in-law’s 50th birthday bash). Sorry for the long ramble there but just wanted to say thanks and that it’s posts like these that help us “little people” to keep the faith.
Like so many of the comments read. I too feel abit weird when I get the complainment about a cake. I just did my first two cakes and sixty cupcakes for a friends daughters baby shower. The cake and such was my gift. I had eight offers that day to make cakes everyone was shocked that it was my real first cake using fondant which I made including all the cupcake toppers. Most of my ideas came from online sites, spent abit of time watching some videos. Just feels weird sometimes you wonder are they just being polite. Thanks for the advice.
I found this very informative, please contact me when your book is completed. I am just finishing my basic cake decorating class and I have several orders coming up.
Hello! Just came across This blog and love the candid and sincere, warm nature of it. you mentioned about finishing up a book with lots of savvy and know how for those of us starting the business aspect. Is it on sale now? Thanks
I truly hope to get this book finished up I only have a few more things to do, the issue is I keep thinking of things that would be great to add to the book and it keeps me from finishing so I just need to stop adding and get it all finished so I can get it out to all of you who are waiting.
My name is Teresa Ruiz and I would like to know if you sell figurines made to bring them to the cake Ensim, I speak very little English, please I would like to hear back as soon as possible, thanks
Teresa Ruiz, I am sorry however I do not sell my figurines at this time thanks for asking!
This is a great post, I have been doing cakes for a while as a side to my main job, now I am intending to do it full time so I have to start charging properly! As others have said its a matter of confidence in my cakes and the level of service I provide my customers. I have this week increased my prices, though I have given friends some bargain wedding cakes by way of a gift and also to allow me to build my portfolio.
Thanks Donna,
When I make cakes I tend to just charge the cost of ingredients and packaging, and just add a nominal amount on top for me- which doesnt cover all the things you have listed. I have always been lacking in confidence, but didnt realise this until I read your article: I tend to feel that my cakes are ‘only novelty cakes’ and have imperfections, therefore I ‘can’t possiibly charge very much for them’.
I shall, in future, try to be more confident, and proud of my skills that, although not perfect, are skills that others who ask for my services either do not have, or do not have the time to use.
My cakes always receive lots of compliments, and I must start believing them.
Thanks again Donna,
Angela Marjoram
Angela It was such a pleasure to read your comment! I truly understand what your saying and was there so many times myself in the beginning. You will get there with each cake that you create, your confidence will grow and each time you get a compliment say to yourself….SELF you know that cake really did look great and YOU did such a great job, good for you! It may sound crazy to some but it does help. I wish you the best and would love to hear how your doing in the future, keep me updated! I believe in you and make sure to take the time to believe in yourself and your creative abilities. All my best to you!!
Hello,
I was just wondering how or where I can purchase your book if it for sale
Has the book come out?
thanks so much for this information.am very new to cake baking and decorating and i just started my home baking business.i always loved to bake and am glad am turning it to a money maker thing,so i dont ever have to feel like am working but doing something i love!i have a long way to go,since i have to learn how to use fondant and make flowers so that i may graduate to wedding cakes very soon!at times i feel proud of myself and my work since av never been to cake and decorating school.i learn through research and add some colour to what i read.i have dreams of really growing big someday and ur just the inspiration i needed.am planning on practising a three tier cake and decorating it to my best.you give me the heart to know that i can rise all i want!
You r very kind to share so much with us! I hv learnt a great deal from u!
You’ve been very helpfull and an eye opener!!! I started playing with cakes to impress my children and it just picked up from there, and it turned out that it’s good for my soul. My husband keeps telling me “you should ask more, it’s special- it’s an art” but the way you’ve explained it… I understand now: it is worth more and my time spent on the detaills is time not spent with my familly, and a lot of stress and sleepless nights!!!! Why not have them pay what it’s worth!!!!
Thank you for sharing your information!!! And best of luck to you on your book… Would love to get one though!!! Im kind of a flower on the wall, never wanting to attract too much attention but i think you may just have given me the confidence to say :my work is worth more than i give myself credit for!!!!
You are a blessing from God, i thank you and Him from the depth of my heart!!!
Sincerely,
Landi
I´m a new visitor and i feel i´m starting to become a fan, yuo have no idea of how much this motivates me, cause ím struggling with this right now, and i´m my case it´s even harder cause there´s a lot of things like fondant that i can´t get where i live and of course sometimes i doubt of myself and i´m unsure on my pricing. Thank you for your help and the inspiration you give us
RR4L
I remember reading what you wrote about pricing way back when! It was so inspiring that I saved it in my favorites. I just came across it again and it has renewed my spirit in Cake Baking and Decorating once again. It has reminded me that some of the things I say to people show a lack of confidence. I will never delete this and will continue to reread it on a regular basis!
Where is your book—I need it!!!
Hoping your Spirit is renewed this Lenten Season.
Thanks soo much Jeanna for the sweet comment! The book is coming I promise…to be honest when I bagan this undertaking I never imagined that writing a book would take so much time along with everything else there is to do in life, I have been to the point that I think to myself, “ok, this is it the book is ready to take to the public” but then I think of some other things that are very important to add to it for those of you in cake decorating who have a tough time getting the important details that many other decorators are not willing to share, so I keep adding other important details. So please know that it will be worth it when all finished…I just want it to be the best it can be for all of those in the awesome world of sugar that I adore and want so very much to help!! Hang in there with me on this!!
Don’t forget Donna that you can always do volume 2. We are so impatient to get your book!! I know it will be so very helpful in getting my business started.
Elaine, I have to let you know that when I read your comment I cracked up it was just too funny! Your soo sweet. Well let me share with you what is going on with the book…..I don’t even want to tell you what happened!! But, I will. Do to an issue during the process of self publishing, the file (which was the original) for the book ended up corrupted and I am in the process of typing some parts over so I do not have a finished copy as of yet (I am sooo sorry to all those who are waiting, I have all the emails of those who contacted me and I will let you know just as soon as I can say it is ready to go)….this is the 2nd time there has been a problem the first time my computer crashed and I lost it all and had to start all over! At times I could just say forget it but I am moving forward with it once and for all.
I am working just as quickly as I can!!
Thank you so much for going out on a limb to give valuable information to us so new to the cake decorating business!! Not many are so willing to “give” information! The LORD bless you and yours!
Maureen, from Canada!!
Maureen may God bless you over and over my friend, thanks so very much for your kind comments to me I truly appreciate them for sure!
God gave me this gift of cake decorating, and I believe that we all have a special gift and it is not to be kept to ourselves but to share with the world.
Your work has been very useful to my personal development as a cake designer. I love you and pray that the Lord will reward you for. Sharing your talent with us .God bless you!
Lawrenta….Thanks so much my friend for your nice comment. I appreciate your prayers I wish you all my best.
Thank you sooo much Donna!!!! i’ve recently started to produce cake art….the problem is, people dont look at it as an art….I luv what I create and so do my customers, but like many of your fans i have terrible difficulty in pricing my cakes. I’ve just discovered your site this evening, and to be honest you’ve brought a tear to my eye…. You have just made me realise that it is truley a special talent that I have and for that talent I should be rewared!!!! You have boosted my confidence so much….thank you thank you!!!! My husband has been telling me this for a long while now and on reading your blog its just kicked in!!!!Starting from tomorrow I am going to make a profit from my wonderful cakes….please keep me posted as to when your book is avaiable and weather i can purchase it in Ireland….thanx again so much….your a star… Leah
Leah you are soo welcome my friend!!! I am so happy to hear that this article was of help to you. It is so important that we believe in our work, if we do not no one else will. Your work is a special gift and you should be paid for what you do and not just peanuts! I wish you all my best in the future!!
Thanks for your great advice! I would like to buy a copy of your book, so keep me posted!
Wow, What an important resource. Thank you, thank you thank you. I too would like to know when your book is released. I have only been decorating cakes fro 20 years for close family and friends but now others are requesting a cake here and there. So pricing is a new thing for me. Also up till now I have only used butter cream on my cakes and am just starting into fondant and gum paste. What a fun new world. Thank you so much. Love your blog.
Debbie Alexander thanks soo much for your sweet comments!! So glad that this info is of use to you and wish you the best as you venture into the awesome world of fondant/gum paste. I must say that working with fondant and gumpaste is my all time favorite part of cake decorating there are just soo many applications and uses that the sky is literally the limit.
This Article has helped and motivated me so much…..I am new to the cake decorating and I do feel shy in asking for the prices that I think the cake is worth….Everything I do is from scratch from fondant making to cake making…..Thank You so much for the boost in confidence….
Donna,
I like everyone who has posted comments have been struggling to charge for my cakes. My husband is getting frustrated when he sees all my sleepless nights working on my cakes only to barely cover my costs. Your comments on charging is exactly what we all need to boost our confidence and therefore begin charging what we should be charging. I am going to make it my goal starting today to charge for my work. Problem is, as someone else stated what is your advice on charging friends and neighbors? I just did a wedding cake for a neighbor’s son. It took me two days alone for the flowers. It was a 3 tiered quilted and pearled marble cake with over 25 calla lilies flowing down. She paid me exactly my cost and gave me a candle as a gift. Which is what we kind of discussed but I do not want to get into the habit of doing again. Have any suggestions on how to discuss prices fairly with friends, co-workers, and neighbors without getting too detailed? I appreciate all that you put into your website and look forward to your book!! Dana
Hi Dana….
Sorry to just be getting back to you regarding your question!! Reading your comment really got to me because I too have done the very same thing as you have and it is no fun to work soo hard night and day doing a cake let alone all the sugar flowers which are very time consuming and not getting compensated for it ……ok let me share word for word how I would handle the pricing aspect when dealing with neighbors, friends and even family who are asking you to do a cake.
So your going to need a 2 tier cake for a baby shower covered in fondant with a baby figurine for the top to serve 60 people, well the fee for the cake would be $4 per serving so that would be $240 and to hand sculpt the baby figurine. the fee is $35 for that but since you are my neighbor or (family member, or friend) I am more than happy to give you a 10% discount on the cake. So the cost of $275.00 with the 10% off would be $247.50………
To be honest when you are straight up about your prices with friends, and family once you reveal your prices even with a discount they may tell you all the reasons why they cannot afford you. You have to be confident enough with your pricing not to begin second guessing yourself once they give you all the excuses which is their way of trying to get out of paying you for the cake. There will be times when family or friends will just plainly say they cannot afford your prices and you have to be confident enough to say well my cakes are not for everyone, and then suggest that maybe they should check with a local baker and such. Your goal is not to get every cake order….. I know that when just getting started, some may feel that you have to take every order that comes your way but that should not be the case because doing this will drive you crazy trying to always measure up to what others want you to do! You will end up working 24/7 for just pennies. Most of us as women want to please everyone and I am very guilty of that in sooo many areas of my life. I have done all these things that I share here on this blog so that you may learn from my mistakes! The goal should be to find that specific niche that your cake business fits, it takes time for this to happen but you will find that when you set your prices and believe in those prices because you are providing a very specialized service with your cakes that you will find over time that those who appreciate the kind of cakes and work that you do and will pay for your specialized service. Your not the local walmart store just popping out general cakes, you should be working towards a certain niche as I said above. I will also say that there are times when I do cakes fro free for people but this is something that is considered on an individual basis, but is not something that is automatically done because a family member or friend expects it.
Sorry I ranted on and on….but just wanted to explain things a bit further for you and others who are interested. Figure out a certain speech per say that you will use when someone asks for a cake and then have an idea of how you plan to charge for friends and family then offer a discount that way it shows that you are trying to go the extra mile for them but your are not short changing yourself in the process by not charging for your time and expertise just for the sake of being nice. We all have many friends who provide a service but we would never think of asking our friend who builds homes to give us a deal where we only pay for the materials to build the house. That person would never say OK I will spend 6 months building your house and you don’t have to pay for my time just materials.
hello
your site is very useful. God bless you more! 
Thank you sooo much I appreciate your blessing!!!
Thanks for the valuable info!!!! it was very informative and inspiring.
Hi,
I am more than thrilled to have found your site – you really put this whole subject in to perspective, because for me the hardest part is pricing cakes for friends – but the work is still the same and my time away from my precious husband is still the same, so I shouldnt have to feel shy to charge the worth of the cake. Thank you so very much – and I am earnestly wanting to acquire a copy of your book when it comes out. God bless and keep up encouraging us bakers and cakers – your very own missionary work!
Best wishes,
Mandy Nel
aka Schweeet Mamma, South Africa (53)
Hello there Schweet Mamma…..
I am soo happy that my post was of help to you! Thanks for taking the time to leave feedback it is soo appreciated. I wish you the best in your cake world, may you be blessed.
Hi Donna thank you so much for the help you give to us all.
I am from Portugal and i start a few months ago surching the internet about cake decoration and i am in love with it.Here in Portugal we are only strarting 3 D cake decoration and is very difficult to find all the ingredients to make fondant and gumpast.
From now on your internet page will be my guide,is a ligth for everyone ho is starting just now.
Thank you
Susana
Hi susana, i am also looking to start novelty cake business in portugal (where i have been living for 4 years). I am finding it very difficult to find out the legal side of things as i have limited portuguese. I would be very interested in chatting to you about it and other aspects of the cake decorating business, making own fondants and where i buy my supplies from. email me if you too are interested . racheljgroves@yahoo.com.
Dear Donna,
THANK YOU so much for such a great article!
I’ve been baking for families and friends for a couple of years and after being told that I should start selling them, I’ve decided to start.
Reading your articles and comments made feel so glad that I’m not the only one with lack of confidence about your own capabilities and knowledge about how much to charge.
Once again THANK YOU!
Keep up the good work and would love to have a copy of your book when it’s ready.
Dear Donna: I live in Mexico and recently started my business as a baker, with excellent results I must add, but as many other bakers said here, pricing was a really hard work…my husband and her mother always tell me to higher up my prices, but I was affraid of ‘scaring customers’. Today I found your website and trully, your words opened my eyes….THANK YOU so much, you, as a baker, understand all the work, time, devotion, effort, mistakes-redo’s involved in each one of our UNIQUE, as you said, creations… Please let us know when your book is ready and thanks for all the advices….best wishes!
Thank you so much for the information you share on your website. As a novice-intermediate cake decorator I constantly scour the internet for great advice and tips. Yours is one of the only sites I have found that gives such detailed and USEFUL information. Please let me know when your book is available for purchase as I will be one of the first to order it! Thank you again
Audra
Please let me know when your book is ready. I want a copy and love all your tips and work.
I am so glad I found your site. The information on cracks in your icing and pricing cakes was so helpful! I would love to know when your book is available! Thanks again.
I would love to know when your book is coming out also. I want to be one of the first to get one. Our tips are a godsend.
Melissa I will contact you when the book is ready to go thank you my friend for your interest in my work I truly appreciate you and all of my sugar friends.
Donna
I would love a copy too. Please let me know..
Hi Donna,
Thank you so much for the really useful information you shared on your website. As I am planning to take the cake decorating as full time I constantly browse through the internet for great advice and tips. And found your site is one of the best sites I have found that gives so much of detailed and USEFUL information. Please let me know when your book is available.Thank you once again.
I wish you all the very best and May God bless you in all your endeavors!
Please inform me when your book comes out I will love to buy a copy.
I will let you know just as soon as the book is ready to go….thanks sooo much for your interest!!! I do appreciate it.
Donna
This was a great article – most valuable words. I use your words of wisdom everyday and every time I produce a homemade cake and price one. I re-read what you post and learn to live by that everyday. Thank you so much and God Bless you.
Hello to you Jae,
I am soo happy that this article was of value to you, it is soo important to not only learn how to price cakes but also the ability to gain the confidence that we as cake decorators need to succeed, as well as knowing how to handle the objections that come with giving a customer a price. Thanks soo much for your kind words they meant soo much to me. I love hearing that my articles and such are helping those who read them.
I wish you the best my friend!!!
how can i purchase Fondant/Gumpaste Animals & people Cake Toppers
flowers etc from you? how can i get a price list. please respond
asap.
thanks
Hi Lou
At this time I do not take orders for my figurines, toppers and such sorry I could not be of more help to you!!
My gumpaste flowers look dull afte they dry. What can I do to make them shine?
Mix 1 Tbsp. vodka w/ 1/4 tsp. corn syrup.
Paint a thin coat on your flowers.
They will dry with a nice shine and they won’t be sticky.
Teresa, have you tried steaming them? Go lightly at first til you get the desired shine. (Also selts your color.) HTH
THANK YOU THANK YOU THANK YOU! Seriously it was a God sent to come across your website and read this article. I struggled with pricing A LOT, and not just for the sake of wanting people to use me, but it all stemmed with my lack of confidence. I was told things looked good, but I knew where my mistakes where and I knew that I wasn’t at the caliber of the master artists that I mentor. So I knocked my price low. REALLY LOW. After a few cakes of making hardly anything on them and when calculating the time spent on them, forget the profit… what profit, I began looking at my pricing again. I started getting more referrals and thought that I deserved to raise my price, but still feel uncomfortable telling people the price in fear that they’re going to look at me like i’m crazy. Reading your article was the exact thing I needed to re-evaluate my business, my price, and my confidence. THANK YOU!
Dina you are soo welcome my friend!!
God wants us cake decorators to succeed in business just as much as those in everyday life do….we as women have to realize we work very hard on each cake we create and NO one can understand just how much time and effort goes into making a simple cake let alone one that is much more involved. Sometimes it helps to educate the public by explaining how the cakes at walmart and local stores are mass produced…..explain what kind of ingredients you use (organic, all natural and so on) I believe it is up to us to educate the public so that we will be valued for what we do, we add a great service to the world and should be recognized as so. Your skills will get better with every cake that you create, thus your confidence should do the same, but usually it does not because of fear. We have to look fear in the face and tell it to go jump off a bridge. The most important thing is that we must believe in ourselves or no one else will. I wish you that best and know that things are going to get better and better in your business, price your cakes and don’t look back you deserve to be paid for your services and more importantly you deserve to make a profit on your cakes!!
Donna
I’m glad that I came upon your site today. It is extremely helpful! As a new home baker, pricing is something that I have struggled with. Reminding me that no one bakes cakes like me was a God sent reminder. Thank You again!
Kim
Kim thanks for taking the time to let me know that this article has been a help to you, pricing is one of the biggest issues faced by decorators. You deserve to be paid what your worth and its important that you make sure you believe in yourself so that others will as well! I wish you the best and believe things are only going to get better for you!
Dear Donna, I’m really grateful for this post. I have been selling cakes to my close friends for years and started really cheap. Then, we (me and husband) decided to do it full time. We didn’t do any research on the pricing and found out that our cake was quite below the market price. The bad this was we had already published the prices on our blog for a few months and dared not increase the price yet. When we calculated the costing of some of the cakes, we were really shocked how the price increase (of the ingredients) have affected the real cost!!! zillion thanks again, your article will definitely help us a lot!!
Love hearing that this article was able to help you that is why I do my best to share with you all the techniques that I have used in business. I agree with you on the cost of ingredients, it seems as though everything is on the rise so all my best to you my fellew cake friend!!
Thank you for the information you have aloud me to read regarding my value as a home cake decorator … so many friends have asked me to make their wedding or Birthday cakes…and on the odd occasion that I have charged…I am made to feel uncomfortable, well I wont any more….thanks once again…Gaynor
Yeah for you, I LOVED reading your email…..and love seeing people realize that they have value and should be paid for their time. We cant go to the store to purchase ingredients for our cakes and tell them well ya know I’m not getting paid for this cake so I dont feel I should have to pay for these ingredients…..they would look at us like we are out of our minds and then tell us to hand over the money!!!!
Dear Donna: I found your information on pricing cakes and other baking topics to be very helpful. I am just beginning a decorating business and am always looking useful, beneficial information. I’ve bookmarked your site so I can refer to it from time to time. Please visit my web site and feel free to give me any feedback you feel may be beneficial. Marie Ruberto