Three tips to better Cake Pricing

02 May 2019

"How much should I charge?" No matter where you go in the Sweet Community or what group you are in on social media, these words are something that you are bound to hear. Sometimes it's amazing to think of how many people struggle with pricing their sweet treats and cakes. However, I can understand why this topic is so popular.

For starters, when we talk about pricing our cakes we are trying to place a monetary value on our final work product. However, from a caker or baker's point of view it really isn’t work. It is our art. Hence the reason why they call us creatives.

We stay up all night researching, and we watch a ton of crafty videos. The bottom line problem for most creatives is that a lot of us are uncomfortable with putting a price tag on our art or work.

Pricing cakes can sometimes feel like one of the hardest things to do in your business. Do you charge per slice or not? How do you determine your labor? What formula should you use? There are also other variables to take into account such as overhead, delivery charges and on and on.

Honestly, there is no right or wrong way to set a price for your menu items. From long time bakers to culinary professionals, we all have a different way of computing our prices. The great part about being the business owner is that setting a price is really under your complete control. The only thing that matters is that you make sure you are pricing correctly and in a way that you can STAY in business and MAKE a profit. After all, who doesn’t want to get paid??

Below are 3 tips to help you understand some of the most important factors to consider when pricing your cakes.

#3 Believe in yourself.

This may seem small but honestly one of the biggest reasons people do not charge what they should is because they don’t feel like they deserve it. Comparison really does kill. It kills confidence, hope and expectation.

If you find yourself ever doubting yourself or getting into your own head and filling it with negative talk such as.” Her buttercream edges are way sharper than mine” or “My cakes are not as pretty.” Cut that noise out in your head.

If you have a gift and people have been chasing you down to buy your products, then know that you are worth it. Don't project those inner negative thoughts about your worth on to your actually products. Everyone deserves to get paid for their time and creative energy. Think about the lifestyle that you want to come from the sales you generate. Everyone has a reason as to why they started. Once you set your prices stand firm, do not let customers bully you and DO NOT ever compare yourself to a grocery store brand, You make custom work and you deserve a custom price.

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There's more to growing a baking/sweets business than making a delicious & beautiful product. You also need to know how to design a profitable menu, win new clients, price appropriately, and cover yourself with a contract when something goes wrong. You won't learn everything overnight, but you definitely need to connect yourself with the right resources that will help you get there one step at a time.

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