What Goes into Pricing a Cake
It may surprise you to learn about all of the costs that go into making a custom cake. My cakes are not mass produced. Each cake I make is given my undivided attention. I offer flavors and textures that cannot generally be found in local grocery stores. I also use top quality ingredients such as Plugra European butter, King Arthur flour, Callebaut chocolate, Nielsen Massey vanilla bean paste, Philadelphia cream cheese, and organic eggs and cream... just to name a few.
Remember...you are not ordering an ordinary cake, you are ordering art.
1. Shopping. The first step in preparing your cake is shopping for ingredients. Some items have to be special ordered. Although I already own loads of cake pans, baking utensils, and tools, your order may require special equipment. Other items used in cake baking include parchment paper, wax paper, foil, plastic wrap, toothpicks, wafer paper, cake boards, acetate, and piping bags.
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2. Prepping/Baking. The next step is prepping all of the ingredients and baking the cake. In addition to baking the cake, fillings and frostings have to be prepared. Some have to be made a day in advance for stabilization. Decorations for a designer cake often have to be started a week or two in advance.
3. Torting/Frosting. Torting a cake is the process of cutting and leveling each cake into layers. These layers are filled with a variety of delicious fillings., sometimes fruity, sometimes creamy, sometimes crunchy. From here the cake needs to be coated and decorated. |
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5. Packaging. In addition to the cost of your cake ingredients, there is packaging. This includes cake boards, boxes, brand name stickers, and bags.
6. Labor. A standard bakery-style cake can take up to six hours (active time) from beginning to end to complete. A designer cake can take 12-15 hours to complete. 7. Profit. In addition to the cost of labor, there is profit. Like any business, making a profit is key to sustaining a business. 8. Utilities. Although utilities (gas, electricity, and water) make up a small percentage of the cost of an individual cake, they are none-the-less a part of the cost of baking. |
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9. Public Relations. This includes the cost of operating a website, social media ads, Google ads, business cards, etc.
10. Payment Processing. Paying by credit card incurs an additional cost in interest. Average interest rates are 2.6% to 3.5%. 11. Delivery Fee. You can save money by picking up your cake. However, if time is not permitting, someone has to deliver your cake. It requires time and gas money to do so. 12. Continuing Education. Staying up to date in the baking profession requires continuing education courses. Keeping up with current trends, learning new techniques, and finding new inspiration is important in keeping your business relevant. |