Veena Azmanov

Cake Artist and Food Enthusiast

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Cake Pricing – How to Price your cakes

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Cake Pricing – How much to charge for your cakes

Cake pricing or how to price your cakes and cupcakes can be the most challenging and intimidating question to most beginners in the cake decorating world. Pricing your cake is not just about adding the cost of ingredients and a markup.  In this post, I share my pricing strategy for your homemade cakes.

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing – How much to charge for your cakes. A Beginners Guide to Cake Pricing by Veena Azmanov

One of the scariest questions – how much do you charge?

  1. How much would you charge for this cake?
  2. If I don’t quote the right price I may lose the order.
  3. If I overcharge, the customer will go somewhere else,
  4. And if I quote a low price then I will not make any money.

I’ve calculated the cost of the same cake a zillion times to make sure I got it right. Also, I try so hard to reduce my costs so that I could charge less for my cakes. And as a result, get more orders.

Sometimes, I look at the price and say – I wouldn’t pay that much for a cake! How can I change that?

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Does that sound like you? I use to be that person above!!

(yup hiding face in palms here)

These are some of the most common questions I get asked from beginners. And it so resonates with me cause I’ve had the exact same questions in my head all along.

  • How should I price my cakes? How to price cakes or cupcakes?
  • Can you share your price-list with me? Please send me your cake pricing chart.
  • What is the right price for a beginner?
  • How much should I charge for this type of cake? Price of cake for this design?
  • Do you have a cake pricing guide?

As much as I’d like to say, this is what I charge and you can charge the same; that’s not possible. So I thought I’d write a little post on Cake Pricing – (well, I planned to write a little bit … it’s long lol ).

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

 

How much should you charge for your cakes?

I’ll Share with you what I do and how I go about pricing my cakes.

Now, having done two degrees and an MBA – you may find that my method sounds very geeky. And yet, trust me the books are not wrong and it’s how you apply that knowledge to practical issues that make a huge difference.

So, hang in there – I will try my best to make it as simple as I can for you all to understand. In fact, I will give you more than one option on how to price your cakes. So grab a cuppa and let’s make it a date with Cake Pricing.

Of course, I’d love to know what you think not just about this post but about cake pricing, about your concerns regarding cake pricing. Please share your thoughts, questions, and comments with me, and the other readers. I might update this post and include some of your comments and address specific questions. Just write a comment below and I’ll be happy to address those questions.

Price your cakes based on their value, not their cost

The most important point I want to make is this. Pricing for decorated cakes is not about cost +. Rather, they need to be priced based on the value they provide to your customers. It’s a luxury product. Therefore, it should be priced on value not cost. It’s like the difference between the price of a dinner in a top French restaurant, and your local fast food joint. You don’t know what is the cost of ingredients that go into your 5-course French dinner. Frankly, you don’t care. You pay for the experience, the emotional value you get from it, and of course the great taste and presentation.

The same goes for custom-designed decorated cakes.

Having said that, if you decide to make this your business, you need to make sure that you have a good business model. In other words, that you can make the profits that you would like to have from this business. Otherwise, it can be an expensive hobby, or worst, a losing business.

Therefore, it’s very important to have a very good understanding of your costs. These include more than just the direct costs of ingredients that go into your cakes. I will discuss that in detail below.

First of all, let’s start with determining the value of your cakes.

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing – How much to charge for cakes/ how to price your cakes

The main factors that determine the value of your cake (Save/Pin this article for later)

  1. Where are you located and how much are your customers willing to pay?
    For example, the price of a cake in New York is not the same as in Texas? (and New York and Texas are both in the US)
  2. What clientele are you serving? (middle-class kids birthday cakes? high-class wedding cakes?)
  3. or What is your expertise? What unique value do you offer?
  4. What is your reputation and demand for your product?

Let’s explore these factors – How to price cakes and cupcakes

1 & 2 – Where are you located and how much is your customers are willing to pay?  What clientele are you serving?

I’m going to use myself as an example so it’s not so geeky.. (wink wink).

When I first relocated from the US (in 2005),  I regularly made cupcakes, cake balls, and cake pops. And yet, it wasn’t very popular here in Israel and to some, it was something new and fascinating.
I grew up with a decorated cake for every birthday, weddings and holidays. But, in Israel custom decorated cake was a luxury item and very rare to find. It was not one a must-have item for a birthday party. A birthday cake was not even in the budget!  I was surprised that some weddings I attended did not have a wedding cake and no one seemed to miss it.

Most birthdays that my son attends have no fancy birthday cakes. Rather, what they often had was a simple cake that grandma made in a baking foil, poured some chocolate sauce over it and sprinkled some sprinkles around.

So in 2005, there was very little awareness or demand for custom decorated cakes in Israel.

Much has changed since then. However, the market here is still lagging behind the rest of the world.  And yet, this is where I chose to start my business. So as you can understand, the level of awareness, and as a result, the demand for, and value of decorative cakes has a direct effect on how much I can charge for my cakes. Hence, I had to find and focus on those customer segments where there is demand for decorated cakes. For example the expat community, and people who immigrated to Israel from the US or the UK.

You need to do the same in your location. Find out what are the trends. What types of cakes are more popular. What are people willing to pay for those cakes? In some places, sheet cakes are very popular, while in other places no one cares much about them.

Decorated cakes take a long time to make. There are some customers who view them as a waste of money. And yet, there are those who value the work and effort put into it and are ready to pay for that.

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing How to Price your cakes a beginners guide – how much to charge for cakes

3. What is your expertise? Or what unique value do you offer?

It is important that you be honest with yourself when answering this question.
Also, almost anyone who starts a business wants to make money. However, your success is largely dependent on your expertise and the value you offer customers.
Most cake decorators will tell you they provide a unique value. Some examples include: doing something new, personal consultation, design expertise, modeling expertise, etc.  But is that enough to create a differentiated value?
First of all, you need to ask yourself what makes your product better than others? Do you bake the cake from scratch? Are you offering free delivery? Are you a unique artist? Do you have creative and unique designs? Are you offering any extra frills? How are your skills compared to your competitors?
These are important questions to answer in order to develop the right value proposition and business model for your business. So spend as much time as you need on it, and most of all, be honest with yourself when answering.
Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing – how much to charge for cake, how to price cakes – Mushroom inspired Birthday cake

Supermarkets cakes vs Homemade cakes (cake pricing)

One of my mom’s friends used to take the price-list of a local bakery, mark it up by 30% and use it as her price list. As a kid, I was amazed at how easy pricing was, but after doing my MBA  – ah not so impressed.

Never ever compare your product to a supermarket product, not even if you are at a basic level of cake decorating. This is not a good price guideline. Why? Because supermarkets have a very different business model than ours.

  • Supermarkets business model is based on low-profit margins, backed by a cost-driven, highly efficient operation.
  • A bakery sells about 300 to 600 cakes a week.
  • They purchase ingredients in bulk and at a fraction of the price that we buy them from the supermarket!! So the same flour that you pay two dollars for probably cost a few cents for them.
  • In addition, they work on a large scale, which puts quantity before quality. We deal in quality and custom orders.  There is no comparison – right?

As a home baker, you try to use top quality ingredients as compared to generic supermarket brands, and you customize each and every cake. While supermarket cakes are flash-frozen; you offer freshness, consultation, designing and much more.

Competitors 

There has got to be another home baker not far from you. Check out her cakes, see the value she provides – compare those to your skills and values.
What would get a customer to choose your cakes over hers? You definitely do not want people coming to you just because your prices are low? Do you?

Unique expertise and value

Identify your unique skills and expertise. Try to use them to create value for your customers.
While cake decorating was a new venture for me, baking, on the other hand, is my expertise. I have been baking for more than 20 years and take pride in the fact that I make the best tasting cakes from scratch.

Since in my present market baking a cake from scratch is considered unique and valuable, I use it as my competitive advantage.

4. What are your reputation and the demand for your product?

To get cake orders you first need to create awareness and generate demand for your product.
  • Do people know you?
  • Have you built a good reputation?
  • Does your product have a market presence?
  • If you have a good reputation, your cakes will be in high demand and you will be able to charge a higher price.

Personal example – Most of my business comes from word of mouth. I do not advertise. As such every client that comes to me, comes thru someone I know or has tasted my cakes at some event.
Because I work in a price sensitive market this is the best way for me to build my business and reputation.

Once people hear about you and your skills from a reliable source their attitude to pricing changes. I have seen that with my customers. There is real tangible value to a good reputation.

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Read more about this cake in How to find cake inspiration for your cakes

All the above factors are important factors in determining what is the value of your cakes in the eye of your customers. How much are they willing to pay for them? What price will your specific market bear?

Is your business model profitable?

As I mentioned above, unless you’re doing this as a hobby, the purpose of your cake business is to generate a profit. The more the better.
Therefore, it’s crucial that you understand both sides of the business. How to create demand for your product, reach your customers, price your cakes correctly, and deliver them. And at the same time, what are the real costs of making your cakes, and running your business. Of course, your goal is that your income from selling your cakes will be higher than what it costs you to make and deliver them to your customers.
Hence, understanding what are your total costs, and calculating them correctly is critical to your long-term success.
Here’s what I did when I started, and it has been working well for me. So I’ll share it with you.

  • Calculate your direct cake cost

    You do not need to do this for every cake recipe. Pick some that are representatives of your most common cakes. Since we tend to use the same ingredients in almost all of our cakes. For example, flour, butter, eggs, milk, buttercream, and fondant cost you – 20 dollars to make an 8-inch cake. Also, keep these costs for your reference.

    Other direct costs include delivery (taxi or fuel costs), set-up costs (boards, poles, boxes).

    My Practice – I divide my cakes into three groups, A B & C, depending on the cost.  Also, I calculate the cost of the key ingredients per cup. Then, I calculate the total cost of a batter for each cake group. For example, for group A, I might need 5 cups batter for an 8″cake plus 2 cups buttercream plus 500 grams fondant. I can just change the amounts based on the size of the cake. As a result, when I charge a client I can just refer to my basic pricing and can give a quote instantly.

  • Calculate the indirect cake cost (this helps determine how much to charge for your cakes)

    These would include what you pay for electricity, gas, water, phone, etc. It also includes any tools or accessories that you purchase in order to make and decorate your cakes. Any cost that is associated with your business but not a direct ingredient in each cake, is considered an indirect cost.

    It’s simpler to calculate these types of expenses on a monthly basis, rather than on a cake by cake basis.

    For example, you can use a rough estimate that 25% of your utility costs are related to your business. Then calculate that total for a particular month and divide it by the number of cakes you’ve made that month. This will provide you an estimated indirect cost per cake.
    For example in an average month, your indirect cost is about 10 dollars per cake.

    Furthermore, marketing expenses, such as advertising, building and maintaining a website for your business, even your business cards are part of your business expenses.

  • Other business expenses

    These include annual expense such as accountant fees, office equipment (PC, camera, phone, etc.).

Now you can calculate your total costs (Save/Pin)

Using the above guidelines, you can now calculate both your cost per cake, as well as your total costs of running your cake business (on a monthly and annual basis).
Example: the cost of an 8-inch cake
Direct cost – 20 .00
Indirect cost – 10.00
Total Cost of your cake = 30 dollars.
So the cost per slice is 1.25  (30 divides by 24 servings)
Hence, if you price your this 8-inch cake below 30 dollars you will lose money on each cake.
Also, keep in mind that this cost doesn’t include your general business expenses that we outlined above.
And yet, as I emphasized earlier in this post, your price should be set according to the value you provide your customers, and NOT based on the cost of your cake.

Don’t forget to save this tutorial on Pinterest for later.
You can find a collection of my tutorials and recipes here on Pinterest.

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing How to price your cake Cake Pricing a Beginners Guide

 

Cake pricing or how to price your cakes can be the most challenging and intimidating question to most beginners in the cake decorating world. In this post I have shared how to analyze, the methods I use as well as how to calculate the final price.

Cake Pricing – Learn about cake consultations on the blog

See post on cake consultation Tips and how to here

What’s most important is that you have to charge what feels comfortable to you and what makes it worth your time and effort. When you value what you do and price it accordingly; others will do the same too.

A few points to note when pricing based on market value – Cake Pricing

My personal experience

When I began my business I priced my cakes lower than the market value, not because I wanted to get more business. No!

Unlike most professionals that go to courses and learn by practice, my practice was on the job.
While I was very confident in my baking skills, I still had to prove my decorating skills not only to my customers but myself too.

So I made a lot of cakes by just charging for the cost and was very happy about it. I let friends pay me the cost of the cake so I could learn and it was a win-win situation for us all. I considered it as if these customers are funding my education.

But as my level of skill and expertise grew so did my prices.

We all have to start somewhere. And sometimes we have to make compromises along the way to reach our goals. What’s important is what works for you. Which customers are you’re aiming to serve, and what are they willing to pay the value you provide.

The Price Tag vs the Name Tag (Cake Pricing)

To me, it doesn’t matter if the cake has a price tag on it or is for FREE. Once it leaves my hands it’s a work of art made by Veena Azmanov.

People who see the cake don’t ask how much you paid for it. They ask who made the cake. So I take pride in what I do and the value I offer.

Here’s another post that speaks on pricing cakes. I think you’ll find it a good read too.  – I bet most of you are underpricing your cakes 

New to cake decorating?

You will find more Cake Basic Tutorials,  Tip Thursdays, Cake Business articles on this blog. You will find a large collection of recipes to help you get started too.

I hope you find them useful. Feel free to share your thoughts in the comments below – I love to hear from you be it a recommendation or a compliment.

Click here to see some of my Index of all cake tutorials from basic to advance.
A Collection of cake decorating tutorials by Veena Azmanov

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Comments

  1. I’m looking for price ranges for a fruit cake I’ve been asked to make as I’ve never made one before.

    I’ve liked your site before but felt a little out of place as I just bake simple bundts with a glaze. Nothing nearly as beautiful as yours.

    A potential new customer has asked for one and I’m new to the area and hoping to get a recommendation from him.

    Any advice? Thanks for your time. I really do hope to find a customer base with my bundts. I only use clean fresh ingredients but people expect to pay $15 or so for a 10” glazed bundt made from-scratch.

    Reply

    • Hey Tena. As I explained in the post the pricing depends on the place where you are as well as the ingredients. A fruitcake has a high-cost price so I highly recommend calculating how much you will spend and then moving forward with the price you quote. Remember local shops buy ingredients in bulk so their cost price is lower. You are not selling a product. You have a luxury item so the price is based on the value you provide not the cost of the ingredients. Also you can check with local businesses for a price reference if necessary

      Reply

  2. I made a tres leches cake infused with alcohol. 2 8 inch cakes with whipped cream, strawberries. I can send you a pic. I just wanted to see how much I should charge at reasonable price.

    Reply

    • Lili, I am not able to tell you what you should charge. I can only guide you with how to price your cakes. If you read the post carefully you will be able to make your own calculations. Thanks

      Reply

  3. Veena thank you so much for sharing such a detailed post on this topic. Very honest and still never straightforward. Such a sensitive topic my nerves never get to do this right.

    Reply

    • Thank you Leo. So happy to hear you found this article useful. Yes, it is a very sensitive topic but one that needs to be addressed. Thanks so much for coming back to write this feedback. Have a wonderful week.

      Reply

  5. I love how simple and easy you have explained this Veena. I really need to work on my pricing. It’s my number one frustration

    Reply

  6. This is the best article of cake pricing I have come across. You are so right – I cannot just use someone else’s prices. I need to do my own market research. Love your cake decorating blog Veena. Always my go to when I’m searching something cake

    Reply

    • Thank you, Davis. So happy you hear you find my tutorials and articles helpful. Thank you so much for coming back to write this feedback. Appreciate it very much. Have a wonderful week.Da

      Reply

  7. Such a detailed post. I loved reading it because it’s always been my pet peeve. I had pricing and every time I have to re-do pricing this post keeps me on track. It’s one of my bookmarks on the pc. Thanks Veena

    Reply

    • Thank you, Cynthia. So happy you hear you find my tutorials and articles helpful. Thank you so much for coming back to write this feedback. Appreciate it very much. Have a wonderful week.

      Reply

    • Thank you, Bradly. Such a lovely thing to say. So happy you hear you find my tutorials and articles helpful. Thank you so much for coming back to write this feedback. Appreciate it very much. Have a wonderful week.

      Reply

  9. Thank you for this detailed post Veena. I really found it so useful. I am glad you did not give us prices, but encouraged us to find our own prices. This will be helpful in understanding my business too.

    Reply

    • Thank you, Roweena. So happy you hear you find my tutorials and articles helpful. Thank you so much for coming back to write this feedback. Appreciate it very much. Have a wonderful week.

      Reply

  10. Such a detailed post. I love your take on pricing. I know what you mean about pricing properly. Sometimes I feel like I overcharged but then when I go calculate it kinda feels just right.

    Reply

    • Thank you, Karina. So happy you hear you found this articles helpful. Thank you so much for coming back to write this feedback. Appreciate it very much. Have a wonderful week.

      Reply

  11. Thank you so much for this detailed post. I love how simple and easy you make it sound. I think your explanation of getting the price organically rather than copying others is priceless. I’m going to try it.

    Reply

    • Thank you, Ashley. Yes, I do love making things simple for myself and then sharing it on the blog too! Glad to hear you found this article useful. Thanks for such a lovely comment. Have a wonderful day.

      Reply

  12. Veena, You are my cake angel and your blog is my cake heaven. Every time I need any cake information whether it’s a recipe or a tutorial I come to see if your blog has it first. Because your recipes are 100% they always work and your tutorials make it seem so easy that it gives me the confidence to try. I’m now venturing into taking orders, so this post again is priceless. Thank you.

    Reply

    • Aww, thank you so much, Carley. What a lovely thing to say. Thank you! I am so happy to hear that you love my blog and find my recipes and tutorials helpful. It’s sentiments like these that make all the efforts worth it. Thank you for such a lovely comment. Wish you a wonderful day. Happy Baking/caking.

      Reply

  14. Hello,

    I’m having a sort of dilemma and wanted to ask you a question after reading this blog post.

    I decided to try a local small pastry shop in my city and the cakes were good but the slice size is tiny or smaller than my perception. I wrote a review on Facebook that the place is great but portions are tiny and the owner decided to invite me so I can share my opinion about there cakes in person.
    All is good but I wanted to ask are there any standard weight or size measurements for cake slices?

    I only find info for cutting cakes. 8″ cake – 8-10 or 12 slices. But what if the slice is just too small or too light as of weight?
    Is there any industry standard that a cheesecake slice must be “x” inches tall or must weight some precise value as 140-180 grams?

    I want to give them the best feedback and since I’m going to say their cake slices are small I want to know if there is any standard I can base my opinion on?
    Everyone cuts cakes differently but we chatted a bit on Facebook about the appointment date and time and they mentioned that they did research and feel that the devil chocolate cake slice for example must be 140 grams. Is there any standard?

    Thanks for your time and sorry for the broad question. After the blog post it seemed like you could give me some direction. 😀

    Reply

    • Mirobg – There are industry standards for everything these days. Dessert cakes have their own size charts and wedding cakes have a different chart. Here we price per serving but in some places they price per weight. Not sure what the guidelines for these weights are in India. Perhaps check with a cake shop close to you, one that has cake slices with a size that you like. Ask them how much the weight is and what is the guideline. Sorry I’m not much help on the weight part.

      Reply

  15. Hi Veena

    Thank you very much for such a wonderful and detailed article on pricing of cakes. This is something i was really looking for.

    Veena, could you please tell me how to weigh a cake. Is a cake weighed by adding up the weight of all ingredients or is it done post baking. Could you please enlighten me about the same.

    Thank You

    Reply

    • Thank you Marina. Happy to hear that this post has been useful to you. Here I don’t sell cakes by weight but by servings.
      I think in India and some other places they sell by weight so I’m not very familiar with that. I know you have to weigh it after it’s baked so you can sell based on that cake weight.
      For example an 8′ inch cake weighs between 1 to 1.3 kgs depending on what cake it is. A chocolate cake is lighter but a vanilla pound is heavier and a fruit cake is every heavier so I think it would be difficult to set a standard price based on just weight.
      I highly recommend calling a local cake shop and checking their prices, size guide and weights. Sorry could not help much

      Reply

  16. Thank you for this detailed post. It really answered all my questions. I still have to figure out how to do my own pricing but at least now I know how to go about it. I love your blog and have learned so much from you. God Bless

    Reply

    • Thank you Fellen. Yes this post is so you can figure out how to use it for your own business. Happy to hear that my blog is helpful and that it has helped you learn. Enjoy cake decorating.

      Reply

  17. Thank you for explaining it all so well in detail Veena. I really love the way you write your blog tutorials and recipes. It really is helpful for newbies like me.

    Reply

  18. Thank you so much for this article. I love how detailed it is. You really have addressed it for a beginner. Thank you so much.

    Reply

  19. Thank you for this wonderful post. This so helpful to new cake decorators who have no clue where to start. Thank you. Appreciate you sharing your knowledge

    Reply

  20. Hi, I’m trying to find out what would be a reasonable price to ask my cousin’s cousin to make a cake. A 6inch (or even smaller since I want a cake for just one person) chocolate mousse that says Welcome Home. She’s not a professional but she’s made cakes and cupcakes for family functions and I think she’d do a good job. I don’t know want to offer her too low of a price but I am kinda tight on funds. Should I go with her or through like Safeway?

    Reply

    • Hey Chloe, This is a very small cake but also a personalized cake. You may bot want to offer her the safeway price but perhaps what a custom cake decorator would charge. I suggest look at custom cake business price list around you and use that as a guide. Thanks

      Reply

  21. Hi Veena, Thanjs for sharing all the information
    It’s very helpful
    I am a bit confused about how many eggs, flour, butter etc I should use for a 1 lb cake with butter cream
    Or cream
    Also Does a 2 lb cake mean It should weigh 2 LBS for example? How many ingredients would I require
    Please explain the ratio thanks

    Reply

    • Rifka.. I think in India you guys sell cakes by weight.. here we sell cakes by servings.. that’s how we price cakes. So Not sure how it works. I’d highly recommend asking this advise from a local cake decorator. Thanks

      Reply

  22. Thank you for sharing your experience. I am not a decorator, but do enjoy making carrot cake to share with friends and coworkers. For the first time someome asked to make a cake and asked about price. I decided just to make the cake for free since, at the moment, I did not know how to go about pricing the cake (not even cost), and because I considered it a one-off. I treat cake baking as an occasional treat, both for the exlerience and the praise. However, thanks to this post I now have a starting point if I ever decided to take orders regularly. Thank you again for your post. I must say: your cakes look beautiful, and, from your description of raw material quality, I am sure that they taste delicious too! Happy baking and may your business continue to grow.

    Reply

    • Thank you so much for your lovely comment Saul. I do believe that no matter how your cake looks – the ultimate test is the taste. To me it starts with quality of ingredients. Glad to know this post was helpful. Happy Baking .

      Reply

  23. Thnks for this post.. It is very useful for a people like me who willing to start cake making business. But i m confused regarding cake business in India, especially Mumbai Suburban Area where I stay..?? Can u please guide me

    Reply

    • I know Alisha.. the beginning cake be tough but it’s a phase we all have to get thru. Every place is different I know there are many cake decorators in Mumbai – I bet if you contacted them and introduced yourself they’d be happy to share some advice that is local. In fact I would suggest joining a Facebook group that has local CD.

      Reply

  24. Thanks for another very important post, Veena.

    I took a lot away from this. One point I particularly liked – charge cost until you are confident you’ve got the experience, and can consistently produce the quality to charge more. It’s as though I’m paying to go to school for baking and decorating. Great point. Up to now, I’ve been doing cakes for free. (Shame on me, right?)
    Thanks again.

    Reply

    • Don’t be hard on yourself Marcia.. We all are like this.. We doubt our self and our talent which is a shame. I’m sure now that you realize it you will start charging your worth. Glad you found this post useful <3 Thanks for commenting

      Reply

  25. I have my first customer for a tres leches cake I made for a birthday party. They actually want the cake for this 4th of July. I don’t really know yet what to charge the person. I know I’m not a professional but when I bake I put my heart into baking. Also I don’t use cheap products I like using quality products, like organic. I recently spent about $50 in products. Any suggestions.

    Reply

  26. I always had a love for baking and always intrigued about these beautiful cakes. I only tried my hand at it very recently for my dads surprise 60th party. Ever since I caught the bug and never pass the chance to learn new things on everything cake and cake decorating. Thank you for sharing your wealth of knowledge.

    Reply

  27. Thanks Veena for throwing more light on this topic. Actually my problem I can say is based on recipes for cupcakes and Sponge cakes. At the onset you mention doing cupcakes, cake balls and cakes pops and all that. I am an upcoming baker anyway and a self learning baker too. I would love it if you would help me out with cupcakes and Sponge cakes recipes for vanilla, red velvet, strawberry, chocolate if you wouldn’t mind. My mail addy: [email protected]. Thank you and God bless. Do have a blessed week ahead.

    Reply

    • Hi Lizzy – I have lots of recipes on my blog. Some in the FREE section – look under recipes – cakes or cupcakes. And some in my online shop. Most of the recipes in my online shop are calculated for you for many sizes so you have less hassle when baking. I hope you find what you looking for.
      All the best. I know the beginning is tough but hang in there – things will get better as you move ahead
      have fun <3

      Reply

  29. hello my name is Hope not speak English use the Google translate. I liked the Turorial the Fondant. where I live it is a very hot climate and I liked how it handles see your Fondant: I have doubts you say 900 to 1 kg. Glass sugar and 700 grams then you say that ?. Whipping Cream you say what function the Fondant? Meringue powder is in the Fondant function? I did and I loved it very much. a question cream can be replaced by water? I thank you very much for your help.

    Reply

  32. I was having this problem and reading your advice has really helped. Thank you so much.
    I just quoted a cake and the fur just told me I was wayyyyy out of her price range, the problem is people want their cakes for nothing!

    Reply

  35. Veena,

    Thank you so much for this post and for sharing your insight! It really helped me decide how to start pricing my cakes. It's still a battle, as sometimes I give a quote before I realize how much work I'm putting into a new cake. I am still learning, but your post really gave me a better handle on things!

    Reply

  39. Thank you so very much for this post. I was trying to figure out just how to come up with prices now that I’ve got clients coming to me for cakes and this was so very insightful. Again thank you

    Reply

  40. I found this article and IT’S SO ME!!

    I always think that i better charge cheap just to do a lot of cake then i can gain experience, learn new skill from different cakes and after i feel confident i also did my prices.

    Thanks for share. Its really help me 🙂

    Reply

  44. One man's meat, another man's poison. There will always be people either finding your cake cheap or expensive. To me, the most important thing is, the satisfaction one get when a cake is done. We are paid with smiles, which is priceless….

    Reply

  45. Veena, this was so helpful and very interesting! I have been baking for well over 20 years but I would only do it as a hobby and would only charge the bare minimum such a $15 or $20 and people love my cakes and pies, so I have built an awesome reputation and clientele for my products. I am now at a crossroad as to whether or not I really want to pursue it as a business. You have really answered all of the questions that I had and I appreciate you for all of the information that you have shared. Than you again Veena!!

    Reply

  47. I want to start a small home-based cake business such as the one described. I’ve always loved baking, and in the past two years, I’ve gotten much better at it. The problem is, I’m only 16, have not taken any classes for this, and have no clue if people will feel comfortable buying my products. That is why I was thinking of charging very little, until I realized the cost of making the cake might break even with the price I’ve set. Should I still try?

    Reply

  52. Very well sais Veena. Thanks for generously sharing this. I’m a newbie and designing cakes is for now just a hobby as I still want to gain experience. This is exactly what i need.

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  53. [* WordPress Simple Firewall plugin marked this comment as “trash” because: Failed GASP Bot Filter Test (comment token failure). *]
    [* WordPress Simple Firewall plugin marked this comment as “trash” because: Failed GASP Bot Filter Test (comment token failure). *]
    Great advice for those just starting out! It can be very tricky but never under value your worth as a cake maker and decorator. Thanks Veena 🙂

    Reply

  58. Excellent blog, I love baking and I am a fanatic at trying to find the best cake recipe! Have not found it yet 🙁 I do not have time to go back to school and get another degree in baking or cake decorating. I am a counselor who loves to bake and make sweet creations. I google a lot to find information to help me be a better baker and this blog already gave me so much information without going

    Reply

  59. I suck at cake decorating, I am new to baking, and have no plans whatsoever to sell my cakes or start any kind of bakery. But I came across your blog today and have been reading one post after another. I love how you explain, detailed and helpful, yet straightforward and to the point.
    I can imagine how useful this post is for those really looking for this topic. Great work 🙂

    Reply

  61. very enlightening blog! ive been baking for years now and just started making cakes for profit recently, while ive had lots of likes on my cake page and lots of inquiries, ive had many would be customers go with walmart for their cakes, im assuming because of price, but i specialize in fondant and i am a perfectionist, so while it make take me a long time to do the cakes, the attention to detail

    Reply

  62. That was an eye-opener. What I do is take the cost of my ingredients, and then multiply that figure by 3. So I guess it pretty much covers the cost of overheads, electricity, boxes,labor, etc., and gives me a little profit as well. What do u think about that….?

    Reply

  63. Thanks Veena! I'm a twelve year old cake prodigy, my dad says we could charge like 45-50 dollars for my cakes!!! That's insane. I look forward to using fondant, so my cakes look even more professional. I spent more than an hour decorating a cake I was just baking for my family. I do flowers, roses, piping, ribbons, and 2 layer 8in. Cakes from scratch. 🙂


    Reply

  64. Hi Veena….Thank You so much for this article! It helps us first time bakers a lot. If someone could please clarify this for me i would be grateful….when you say its a 1 kg cake, should the cake weigh 1 kg with icing or without?

    Reply

  65. Hi Veena
    What a great and honest topic in relation to us newbies in the busines….I feel my cakes are a little over cost at the moment but as my orders come in I do say to my potential customers…due to me never having done this type or particular style etc ie: car cakes(grrrr) I'm willing to offer you a first time design price of such n such….my delivery fee is free within a radius

    Reply

  66. Hi,
    Very interesting and informative artile. I am going to start my homemade cake business. You have nicely explained not only pricing strategy but how to start from scratch.
    I am working on some eggless recipes. If youncan help me out some good recipes.
    Thanks for sparring time for us.

    Reply

  67. I just want to thank you for taking the time to share your experise. I really learned a lot by reading all your wonderful tips. I have been learning as I go as you did. I've been baking and decorating cakes for about 21 years now. Of course, my skills have gotten a lot better over the years. I have been building my portfolio and my confidence at the same time. I've made so many

    Reply

  68. Hi Veena,

    I found your article very helpful. I am also new in baking and I found it really hard pricing my cake. My old friend just gave me the recipe few months ago, it was her personal recipe. The other day, I celebrated my birthday and some of my classmates had tasted my cake. Then last night, somebody was placing an order for my home made cake.

    Thanks a lot for the

    Reply

  69. Dear Veena,finding your blog was an answer to my prayers! I recently decided that I should pursue what I love and learn on the job like you did. So here's what I thought I'd share with you and your readers about pricing my cakes.I'll tell my family and very close friends plus some colleagues in the office that I'll be happy to make their cakes and they pay what a bakery shop in

    Reply

  71. Excellent article.I just wanted to know what if u get a phone call and ur customer says i think the price is too much why is it so.While outside u get a few dollars less and not even a decent cake with all chemicals possible.Do u think that u would come down ur price .Have u faced any similar problems?

    Reply

    • No matter how low you price your cakes, there will always be people in the market who will find your cakes expensive.
      Some customers will value your cake with the list of ingredients in mind, while others will value your cake decorating skills.

      You price your cakes based on the time, effort and skills you deem fit; not based on the cost. The cost is only a guideline. You can also

      Reply

    • Hi Veena,
      I am from Australia. Your website is lovely and it is good that you have your You Tube demonstrations, too. I am not confident enough to do demonstrations, so I admire you for what you have done. I find with wedding cake clients, that many of them refer to their "budget" and can I make the cake cheaper? I have reduced my price for them and effectively made the cake at a

      Reply

    • Barbara, Thank you for your compliments.
      Do not take this the wrong way, but it sounds like you need to convince your self that you are charging a fair price first.
      It is very important that you believe in the prices you quote to your customers only then you will be able to assure people that you find your prices fair. That is why it is very important to do the pricing exercise.

      Reply

  74. Thanks Veena, thanks for replying so quickly. I think i'll be upfront with this lady. Tell her that i give no guarantees other than she will get a cake like the one i made for the wedding. If she feels its dry oh well, i will do everything i can to prevent a dry cake :-/, i dont think anyone sets out to bake a dry cake. I did add meringue powder which gives a cake body to withstand all the

    Reply

  75. Thanks for the help. My problem is i'm an artist and not a baker. Never ever have the intentions of being a baker. But, for my sons wedding, i made the grooms cake. Its unique, custom and took hours to make. Its a work of art and not really a cake you'd make ever again. At the wedding, i had several people wanting me to make the cake for them. Time went on and i hoped they'd forgotten

    Reply

    • Cowgirl8,
      Thank you for your comment. It took me time to reply because I could not find the right words to say to you.
      As I said in my post it is up to you to decide what you think is a fare price. Some people charge the cost price and are happy with it because it gives them the opportunity to explore their creativity. Some people need to make money as it is their business. And some

      Reply

  77. Thanks for taking the time to share this with us. I was wondering how to go about it. You explained everything so well. I kind of wanted to do the multiply by 2 option but I see the things that you mentioned and now I realised that I would have underpriced my cakes. I will add my business cards and delivery pricing too. Thanks for this post. Really helpful.
    Ruth

    Reply

  78. This is the best post on the topice. I've read a lot of articles out that speak of charging high prices for your work but for the first time I feel that someone understands how I feel. Now I do not feeel guilty about charging less, you are right I need the prcatise and so I'm not doing anything wrong. Thank you so muhc. I love your blog.

    Reply

  79. This is so ture…
    For the first dozen cakes I too charged around 25% less than I would have liked, until i was happy that the finish of my cakes. Still in the process of establishing my brand Perseverance does pay off!

    Reply

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