Thank you Rose! I'm a home baker, I also sell in a local market. I'm currently renovating my cellar separate from my house into a studio, to work out of. I charge the same prices stated above, by Rose. I live in a very small town, but my work is such that it deserve the price tag, and people don't complain. There is another home baker in my town, that undercuts everyone's prices, but she doesn't have the skill to charge what I do. No one would pay that price for her work.
She still takes many orders. Just because I choose to do this from my home, doesn't mean I'm less qualified. Or that I don't practice safe, cleanly baking habits. I am a mother first, working from home allows me to raise my child and help support my family. I have found that some people will always want cheap, some people want quality, that's what I offer. A business license doesn't automaticly mean skill, I can think of 3 "real bakeries" in my area, who's work isn't half as good as mine.
I can assure you that none of my children have ever put their fingers in someone's cake. Which is just as likely to happen in a restaurant, by employees. As a home baker, I dont steal business from people, people choose me, and my work. Plain and simple. Hi rose , I am rose also is my nickname. I have read your story about your cakes and I agree with your decision making. And I am planning to put up a small business like cakes decorating but I have doubt on how to get the profit or take a charges of any kinds of cakes.
Please explain how are home bakers "taking your business? Then no one stole your customers. The customer has the right to choose between you and other bakers. And how arrogant of you to believe your cakes taste better than those that come out of a cottage industry baker's kitchen. Get over yourself or stay out of the kitchen. I agree. I can honestly say that there is a bakery here in town and their cakes SUCK! They're dry and crumble and they charge an outrageous price.
I do charge a lot less, but I'm also starting out. I'm saving for a shop that I can place behind my house, saving for the insurance and renovations. But because I work out of my house for now, doesn't mean that my cakes are subpar. I've had many compliments on my cakes and my name is now all over the midlands of my state.
I came to this article because I do feel that i need to raise my prices, but some of these comments about home bakers stealing industry bakers customers really hit a spot. The customer chooses. I've already been told by my customers to raise my prices and that they'd pay. Okay, I'm done venting lol. Rant indeed. I'm a full time school teacher and I've baked cakes for 35 years from my home to make extra money; including to put my own self through college and raise our two daughters, and I too hear from people that want a cake and they've not been happy with a big cake shop's problems; inconsistent decorators because of employee turnovers, or inexperienced decorators, etc.
Everyone knows my work. It's widely known around our small towns. I also make wedding cakes for a state park lodge and deliver them myself. The big cake shops in a town near here won't even deliver there. Their loss is my gain. I have to pay full price for all of my cake supplies; so I do NOT pay the same as you for my ingredients. I pay the same thing the public pays for my supplies. I can already tell you do NOT sell cake supplies to local bakers either; or you would not be ranting and slamming them publicly.
Again, your loss. You could be a friend to them and make even more money by selling supplies to them, like the one I buy from. She's awesome and we've even taken some classes together. I do sell supplies to home bakers.
I have to say that I do not feel that the home baker is fair, they undercut you on cake and dessert prices. They do not pay taxes, do not have liability insurance, if someone got sick, you could be sued and the place you are delivering to will be sued. The other thing is I hire people and help support the economy, do you hire people to work in your kitchen.
Do you get inspected, I get inspected every year. Cake supplies are pretty much the same for me as they are for you.
So many sell to the home baker. If it has been something you do why don't you take the leap and open a shop. I have been doing this for many years and I do not have customers who do not get what they ask for. I know that goes on, but I also know of many home cake decorators who have disappointed also. They did not deliver because someone got sick in their family.
Just my two cents. I don't understand the animosity. Life isn't "fair. Every person has to do what's right for them. You want a bakery or maybe have to have one based on the laws in your state - that's your choice and your circumstances. Personally, I love baking from home and I have no desire to run a full-time bakery. It's not about not putting my butt on the line - it's about making life choices that work for ME.
I can homeschool my kids and sell cakes from home. I couldn't homeschool my kids and run a full-scale bakery. If you want to talk about "fair", it's not FAIR to say all home bakers undercut bakeries on cake and dessert prices.
I charge MORE than the local bakery - sometimes times per serving more. Also, I abide by every law in the state where I live. We have a cottage food law that allows me to bake from home without inspection. I do pay taxes and I do have a business license.
I could have liability insurance but I choose not to. That doesn't mean I'm not liable for lawsuits - I could be sued and I'd pay the price. That's a risk I choose to take. I pay my children to work for me and I pay other local people for edible images, cake delivery services, cake stand rentals, custom cake toppers, etc. I don't need to hire full-time help because I don't take that many orders.
It's a simple matter of my home bakery is not that big by choice. It doesn't mean I don't support the local economy - I buy ingredients locally when I can, and the taxes I pay to go to my local economy. As far as canceling because of a family illness. I did cancel when I had to have surgery but that was a major medical event that even a bakery owner couldn't have avoided and I gave my customers weeks notice so they could find another source for their cake.
I'm sure there are just as many cases of bakeries failing to satisfy or follow-through with a customer as there are home bakeries doing the same. Just because you have a bakery not from home doesn't make you incapable of mistakes or disappointments, nor does having a home bakery naturally make you a flaky business owner. Hi Rose, My now 17 year old son started a baking business 2 years ago in FL where we live.
It is a lot of work and when he is in school I have to kick in and do all the baking. While at times he undersells he still gets paid fairly well for our area and always the price of the supermarket chain here. I applaud you for doing what you do and you really shouldn't have to explain what you do to others. I just hope my son take that energy to college -- he is also starting a clothing line. Always something. But i do have one question - where did you get your fondant training?
Were you self taught. I am getting ready to youtube myself to death with the fondant animals. I usually tell customers I would do the fondant but charge 3 x's the regular amount because I really dislike fondant.
I can see that might be a problem with some home bakers. I, on the other hand, take a commitment seriously when I am asked to make a cake for someone. Especially since they may live out of state and know no one else to ask.
I had 2 cakes to do one weekend five years ago and my daughter went into labor at 5 months and her first child and her daughter did not live. My grandfather also died 3 days later while I was with my daughter trying to get through this, taking down a baby crib and ultrasound photos.
But, I would never balk on a deal with someone that is about to experience their happiest day. So, I did the first cakes Friday and delivered them, buried my first grandchild Saturday morning, and my husband helped me and we finished and delivered the second cakes Sunday afternoon. We buried my grandfather 2 days later. I don't even remember decorating the cakes to this day. Not everyone bails out as you stated, when someone is "sick". Those people that do should already have a reputation and word of mouth should stop people from using them.
It's sad they are still doing this to people. If public school teachers were paid as they should be, I more than likely would not do this for extra money either.
I've also told many people to go to several cakes shops in another town when I was unable to do a cake for them. I enjoy doing cakes. I never intended to open a shop; I took lessons to bake cakes for friends and family. I only started doing them for other people because they kept demanding them. Greediness is very unbecoming. So let me take back some of my comments and not lump everybody into the same category. In NY there is no cottage laws.
People still make cakes out of their homes. I understand there are customers out there looking for a better deal. Will they get it? Maybe a better price but not a better cake. We have a Costco near us, I see the cakes they produce and I know that the cakes are not the same quality but people buy them.
There are different customers with different tastes and different budgets, I understand that. I am happy to hear that you are running your cake business as a business and not entering it looking for the business and not the least expensive cakes you can sell. You are right about liability, all it takes is one person to get sick not even on your cake and they sue everyone. Your response Susan that greediness is unbecoming, you should think about what you are saying until you walk in someone else's shoes.
I have to meet the rent for my location plus utilities every month. I have to pay withholding tax for employees every month, pay for supplies every week. Try to be fair to everyone and still stay in business. I don't think there is a night that I have gone home and not thought about my business and how I can make it better or is something going to break or whatever other things could go wrong that may effect my business. I am not greedy, far from it, I have helped more people then I can count, starting business, needing a job or sharing my knowledge with other business owners.
I am a firm believer in helping whomever I can. Thanks Rose, very helpful indeed. For example a 8inch cake round cake that serves people, how tall would it be? Just trying to see what are the common portion sizes are as i tend to do them slightly bigger. Thanks , Veronica. This was my question too! How would you adjust prices for layer cakes? Or do you only do two-layer cakes? Overall, I charge per serving.
So if you add layers, you add servings and therefore, you'd charge more. Thank you so much Rose for your advices, you are very kind to share your experience with us, and an admirable women. I do baking in my home on fort Lauderdale, Fl since 2 years ago, doing catering. So now I want to start adding more custom cakes. But my fears don't let me progress.
I am married and mother of twins and always dream about showing what I can do with my art. I would like to ask, what do you do about the city's regulations or permits?
This is one of my concerns. I really appreciate your posting, it help me very much. The laws and permits vary from state to state and even within some cities. Hello, I was wanting to start doing this for a little extra cash, I already love to bake.
I'm a stay at home mom so I have the time, I was just curious if you could help me with a few pointers, if you could email me [email protected] That way I can ask you questions personally now and in the future, thank you so much!
Hi Amy, I actually get asked so many questions, I don't have time to reply to them all. I do offer one-on-one coaching services if you'd like some personal help. Hi rose, first you're very kind and helpful to let us understand how does it work when you think to sell cake, because of the passion for sure you had.
I have the same passion, I've learn by my self and after I worked as a icream maker in Italy, I started to think maybe I can sell my cakes. Everyone always appreciated even because I don't use only frosting or icing sugar.
Those I use only for decorations. I met people that told me I do able to do cake and loved the taste too. So because I always made cake for friends and my family I started to think maybe I can do it. But how? Here food is so expensive and if you're not careful you loose money instead to earning.
Where to go? Where I can buy things that we need for cakes. And other worries are where is possible to by gluten free food? Because I cook for allergies and I've made gluten free cakes. I hope you've can give me more advices. Thanks a lot. I have recently had a cake decorated10 b 10 square How much per hour should I pay She has not charged me but she has spent five hours of her time decoratingI made the cake. This has helped me so very much! Thank you for all the information. Now I know how to go forward!
Thank you for the information, I have been making cakes 30 plus years. I more from my home town 9 years ago, and had stopped bake due to not knowing anyone. So thank you it will help me. You are so right Absolutely thrilled to help! I think undercharging is an epidemic among home bakers! I do lots of fondant and handmade flowers.
I really need to give myself at least a bit more credit for my own time. Hi Rose Thanks so much for this, my only question is how tall are your round cakes? I also started out too low and have now got to a place where I think the work I produce has improved greatly and most people seem happy to pay it. I generally don't deliver as I am either baking or have the kids.
I also believe if they can't afford it go and get a supermarket cake but don't compare them to mine. You need to target market your business. Cheers Jenny. My tiers are generally around 4" tall, so each of the 2 layers of cake are just under 2" plus I do a "dam" of frosting and then filling in between.
Does that make sense? Rose, You are just so awesome! In my area, bakers don't share anything with each other! You share so much that you have learned with us all, and you are to be commended for that! Pricing is still a big struggle for me. I wind up quoting each cake I do individually Hardly ever get the same order twice. I tack on alot more for detailed work.
I've lost many customers because of my pricing, but they were wanting a specialty cake for Wal Mart pricing and I just can't do that anymore. I must say, though, since I've learned to stick with my pricing and not feel back about what I charge, I've been blessed with some awesome repeat customers! You always encourage me so much!
God bless! Love you Renee!! You have NO idea how your recipes and tutorials have helped me! I live by your fondant recipe!!!! Always nice to see that the pros struggled in the beginning as well. Thank you so much for sharing all of this with us! Thank you so much for taking the time to share this with all of us. When I first started I know I struggled with telling people the amount I charged. Why do we do this to ourselves? Many of us home bakers are better than bakers with brick and mortar stores!!
What really clinched it for me was not wanting to be known as "the cheap cake lady. If you want a cake from me, it will be custom and you will pay for it! Thanks again!!! Thanks for the advice very helpfull as im just trying to turn this from a hobby to a small business.
Admire your honesty. Rose, I hope to some day be more like you! My cakes are by no means bad. I'm still a little inexperienced, but I've been doing this on and off for about 5 years, and actually selling them for 6 months now. I charge similar pricing, so I can refer back to that bakery and say, hey, they charged the same!
Unfortunately, this is what most of the local bakers charge I've checked them all out the best I can! I always feel like I'm over charging, and underselling myself. But I suppose I really need to build a client base before I can start raising my prices! I was doing the same thing 2 yrs ago charging cheap until one costumer send me one of her friends and she said that i work really nice and charge so cheap. A friend told me once that if your are far too busy and nobody ever balks at your prices, then you're undercharging.
I definitely need to raise my prices but I think I have confidence issues. I don't feel like the cakes are perfect yet, so I'm hesitant to charge more.
This was a helpful article--now I just need to act on it. How do you deal with the issue of referrals from friends and family? I charge less for immediate friends and family, but most of the business I get is from referrals. How do I tactfully increase the price for the friend? I'm so sorry I missed your question! I would quote her a price and if she mentions that so-and-so paid less, just tell her that you give discounts to family and close friends but you can't extend that to everyone.
Most people will understand. You can also tell your family and friends that you are giving them a discount and ask them to not share that price when doing referrals, or tell them what you would charge someone else so they can pass along the full price.
People need to understand that this is a job and we need to get paid for, if they are looking for a cheap cake, there are plenty at the grocery store. When I get an inquiry that starts with how much I am looking for something simple and plain Either they book with me right away, or I never hear from them again. People tend to want custom one of a kind cakes for the price of Sam"s cakes. Great post!!! You're so right Kathia!
I know I'm probably in for a doozy when they start with, "I just want something simple, it shouldn't take much time Very good article. I just started my business but will not back down on my prices.
Baked from scratch each recipe is tasted by me and others , I know not everyone is going to like all the flavors but if I can eat it and others clean off their plates then it is a recipe I use. Lucky come January I can sell outside of my county.
My prices are close to other counties. Thank you, thank you! I remember how much I appreciated it when you shared with me your spreadsheet for calculating cakes a year or two ago!
When I started cakeing a year and a half ago, your blog helped me tremendously! I still go back and look at things when I need help figuring something out! As a home baker, I can totally relay to the "underselling" of my work! I work a full time job as a radiologic technologist during the day and 4 days out of 7, come home and bake and decorate, along with being a mom to two boys and a wife! I live in a small rural town, where the nearest "big" town is 30 miles away!
But you can also spend as little as three figures. Part of it has to do with the complexity of the design. But part of it also has to do with whom you hire to make it. There are affordable alternatives to big-name cake designers, say culinary professionals and event planners. Pros also say there are even cheaper ways to go: A plain sheet cake can be gussied up with a few design elements, such as gumpaste flowers which can often be purchased from cake designers or online through craft outlets like Etsy.
The result? And the truly adventurous can always go the do-it-yourself route. He is married to Lisa Valastro on 14 October and has been blessed with four children. However, how much you pay will ultimately depend on where you live and the complexity of the job. High Cakes The figures for 2 in.
Determine the cost of each ingredient in total whether it be a 10lb bag or not List how many grams of each ingredient you have in a recipe. You would be surprised how these things can add up! CakeBoss also tracks profit for each cake, contains a photo record of all your orders, lets you print customized invoices and reports, has a calendar feature to assure that you never forget an order again, and much, much more! Your satisfaction is absolutely guaranteed with our Day Money-Back Offer!
If CakeBoss does not completely change the way you run your home cake business, we will refund the full purchase price within 30 days, no questions asked. Terms and Conditions - Privacy Policy. Skip to content This is one of the most frequently asked questions by cake decorators when they begin to sell their cakes. Am I charging too much for my cakes? I have read that a good way to price cakes is to charge for the cost of ingredients times 2 or 3.
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