Pricing is the number one question I hear from new business owners. I hear you, it's always really tough trying to put a price against your own products. For all of my strategies check out the two blog posts below...or just skip straight to the Cake Pricing Formula at the bottom of the page!
My super simple cake pricing formula!
Armed with all of the knowledge you’ve build up by following my recommendations above, you should be able to fill in the following blanks: an hourly rate, the time it takes to complete a cake order, your overheads, and the cost per order. Overheads is a tricky one to totally pin down so I like to take it as a percentage. The longer you’ve been in business the more accurate you can make this percentage but, from experience, 5% of your hourly rate multiplied by order time gives you a sensible number.
(HOURLY RATE X TIME) + COSTS + OVERHEADS = CAKE PRICE
So, for an 8 inch 3 layer cake, filled with jam and buttercream, decorated with fondant, taking 5 hours to complete...
(12 X 5) + 10 + 5% (= 3.50) = 73.50)
Cake Price £73.50 (if you want to be exact, feel free to round up or down as you see fit!)
If the thought of more maths is making your head hurt, don’t worry! I have a FREE DOWNLOAD that will do all of the heavy work for you.