What would you charge for this cake?!


Question: What would you charge for this cake?
This is the cake I made for my daughters first birthday, I've had many people requesting me to make cakes for them.. just trying to get a ballpark idea of what a cake like this is worth! Thanks
http://www.facebook.com/#!/photo.php?fbid=1629687664955&set=a.1519917640773.2067660.1319506769&pid=31674188&id=1319506769

Answers:

Depends on the ingredients you use plus misc expenses plus profit margin. For example, ingredients for the cake are cake mix $1.95 + 2 eggs (.99) + 1 Cup Oil (1.05), thats 3.99. Add that to miscellaneous cost like packaging materials which is anything for foil, plastic wrap, cake boxes also shipping cost or transportation cost. Some of those cost are estimates, some are exact. Lets say that materials and shipping cost were $7.00. Now Profit margin.. lets say 25%.... So ($3.99+$7.00)x .25 = $13.74

And that is how I would figure out how to price a cake. And you can get really specific in figuring out the cost of your ingredient and materials expenses. for example if you buy a dozen eggs for 2.00, you know that you paid about .17 cents for one egg, .34 cents for two eggs etc. You can estimate with cost like energy expense or gas for transportation. And of course profit margin can be anything you wish...



Cost your ingredients (all of them, exactly) and multiply by 4 times to reach a reasonable selling price.




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