The Hardest Part - Part Two

After a week as crazy as I've just had, I feel the need to get this next blog post up and resolve this "hardest part" once and for all!

I had three cake orders to complete in one week. A first for me! I had one very complicated cake due on Wednesday,

and two others due on Saturday (the day after Halloween!).

Since customized fondant cakes are time consuming, combine three cakes and a part-time nanny job with a holiday like Halloween in the mix and I am ready for a break! I feel like doing cakes could take over my life if I let it, instead of it being just a fun hobby, so I would like to make sure I am making a little income if I'm going to keep doing them on a regular basis and make it worth my while. I did these cakes this week for way less than they are worth considering all the time I put into them, and this week has showed me that it's time to step-it-up in that department.

So let's get down to the "nitty gritty" on pricing cakes. This is truly the hardest part!

I searched the internet for articles on the subject of pricing cakes. There were several from experienced bakers/cake decorators, and they all had pretty much the same advice: "New bakers: Don't undersell yourself!" I guess it's pretty common for new bakers to have this problem...

A company called "CakeBoss" that makes computer software for bakers (not to be confused with the TLC Cake Boss from New Jersey) has a great article with lots of good info on pricing cakes. http://www.cakeboss.com/Cake-Stuff/Articles/How-Much-Should-I-Charge To quote their article:

"[How much should I charge for my cakes?] This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes.  The simple but frustrating answer is that no one can tell you how much you should charge.  Setting a price structure is one of the most difficult parts of any business. As with real estate, the price of cakes varies widely by location and is largely determined by your local market.  Finding the right price point requires research of your competitors' prices, and a solid understanding of your own costs.

As artists, it is hard to know what value to place on our work.  We don't want to sell ourselves and our talents short, but neither do we want to shock our customers with high prices, leave them feeling like they paid too much, or even worse - have a customer argue with us about the price of our cake."

More from the CakeBoss article:

"How do I know what people will pay for a cake in my community?

Call other custom bakeries in your area and ask them how much they charge...for wedding, party and sheet cakes.  Set your prices close to theirs, or maybe slightly lower if you are still building your skill level.  Do NOT undercut them - this is a disservice to them, and to other decorators in your community"

Interesting! If I charge too much lower than other cake makers in my area, I am ruining it for THEM! Ugh. I don't want to be the bad guy....


So I did what they suggested, and I researched my "competitors" prices.

Stay tuned for Part 3 to find out what others in my area are charging for cakes.................