You have laid out those formulas really clearly. Thank you. There is one more cost and that is 'what the market will pay'. If you are really good at what you do you can charge more for your skill, if you're still developing a skill then you won't be able to charge top-end. One of the ways to work this out is, if you are very busy and are asked to quote for a cake, set a price higher than normal. If the customer values you they will pay for the cake. It probably means you're not charging enough for the rest of your cakes and people are coming to you because your product is cheaper than the competition. Really useful post. Thanks
God bless you! Your video is going to help me out a lot! 🙏💙 I am a self taught home baker and been making cakes for many occasions and selling them but I have been selling myself short every time. I feel like for the amount of time, money, ingredients bought I have not been making any profits, I’m losing more than anything! So I’ve stopped for a couple of years. Watching your video has just bought me so much happiness and joy! Your formulas and clear explanations will definitely help me out a lot! I am feeling confident now to be able to go back into baking and do what I enjoy! But this time actually making something rather than nothing! 🙏💙THANK YOU
Thank you so very much for this amazing video ! I have struggled for years asking different bakers to help me learn how to price but they just weren’t willing to hold my hand and take me step by step. I have gone on and off my small baking business due to pricing struggles. I believe the flavours of my baked goods is amazing however I am not the best at icing and decorating yet, especially cakes; I used to own a strictly cupcake business before. I used to think people were coming back to me for preference but I realise it could also be for cheap prices. I am going to try this and come with feedback, thank you
I can't wait to heat how it goes for you! If you're looking for help with cake decorating, check out my channel for hundreds of free tutorials on different techniques and designs :)
As always, you give such practical and useful advice. I know I undercharge for my cakes because I simply guess at how much they should sell for. All of what you said is applicable to by sewing business, too, so I am going to apply the same principles to pricing my goods. Thanks so much, Emily!
I own a cakery but we don’t make any profit at all. It’s so hard to charge the right price when people are not spending as much anymore. I’m a Brit, living in Canada where we currently have very high ingredient prices. Your latest video is the best yet and I’ll try your methods to check whether I am pricing cakes too high or too low. Thanks Emily 🩷
I hope it’s useful for assessing and maybe adjusting your prices. Owning a cakery is so challenging - I had one in Costa Rica for 3 years and I loved it but also could probably never do it again. Hats off to you! Would love to swap stories one day - where is Canada are you? I studied in Montreal and loved it!
Thank you, Emily! I use a spreadsheet for each cake. With prices going up frequently, I'm constantly changing my table. But it's still the best way to go in my opinion.
Hello, Thank you for this informative video. I am a beginner home baker. I bake cakes and sell them to a café, but my cakes don't have a lot of decoration. Therefore, to align with café pricing, I sell them at bakery cake prices. However, I use the highest quality ingredients and make delicious cakes. At the end of the month, I’m left with an amount equal to the cost of the ingredients (e.g., if the total is $100, $50 goes to ingredients and $50 is profit). It seems insufficient to me, but I’m also struggling to compete with the market. I don’t account for any other costs. People around me say it’s a good profit, but I’m not sure.
There are a few ways you could adjust this for wedding cakes. You could increase your profit percentage or if you consider the time taken to consult and design a wedding cake then your time spent would be higher for wedding cakes, too. Materials might be more expensive like support for a tier cake, special presentation items, etc. And you might choose to allocate more of your insurance costs to wedding cakes than cakes for other occasions.
Hi, this is very clearly explained. I'm learning so much from your cake school. But all the maths side of it gives me anxiety. I have no qualifications in maths it's my weakness. I also struggle with knowing how to devide the batter too. So at the moment I'm just making what I specifically need.
Im just figuring out how to do this. Ive had a couple of commissioned cakes but they have been for people close to me and i still feel quite inexperienced so some cakes for people close to me i charge less on as im using it as a chance to push myself (like my first sculpted character cake for my nephew's birthday last month)
Wow, congratulations on your first sculpted cake! When I started making cakes for friends and family I wasn’t comfortable charging for my time yet so I would only ask them to cover the cost of my ingredients. I found that charging higher prices increase the stress and pressure too much! But with practice and as your skills improve I’m sure you’ll get more confident and be able to use these 4 steps to increase your prices to cover all of your costs + profit 😊
@@BritishGirlBakes definitely increases the stress. Thankfully the cakes are my side hustle and not my primary job 😅 my main job is as a swimming teacher
It's very important to know your costs. I once donated a homemade creation to be sold at a bake sale for charity. The woman running the sale told me the price she wanted to charge for it. I had to inform her that the price she had come up with was less than the cost of the ingredients. It deserved a higher price. She priced it higher and it sold.
This is invaluable! As a former tax collector, I have seen people write off cost of lights, gas/electric and square footage used in a certain room. Very detailed!
It's saved as a google doc and when you open it, within the webpage you'll see a top menu (not your browser's menu - it's immediately above the spreadsheet). Click on File and then Download and you can choose to download as a file for Excel or Numbers or whatever program you like to use. Hope that helps!
You have laid out those formulas really clearly. Thank you. There is one more cost and that is 'what the market will pay'. If you are really good at what you do you can charge more for your skill, if you're still developing a skill then you won't be able to charge top-end. One of the ways to work this out is, if you are very busy and are asked to quote for a cake, set a price higher than normal. If the customer values you they will pay for the cake. It probably means you're not charging enough for the rest of your cakes and people are coming to you because your product is cheaper than the competition. Really useful post. Thanks
That’s a great point! Thank you for sharing it!
God bless you! Your video is going to help me out a lot! 🙏💙
I am a self taught home baker and been making cakes for many occasions and selling them but I have been selling myself short every time. I feel like for the amount of time, money, ingredients bought I have not been making any profits, I’m losing more than anything! So I’ve stopped for a couple of years.
Watching your video has just bought me so much happiness and joy!
Your formulas and clear explanations will definitely help me out a lot! I am feeling confident now to be able to go back into baking and do what I enjoy! But this time actually making something rather than nothing! 🙏💙THANK YOU
Your comment made the hours of preparing this video worthwhile! Thank you!
OMG!!! Thank you so much. You made this very user friendly. Explained very well. You took the fear of pricing my cakes away! Thank you so much.
Yay!! Thanks for your lovely comment!
Thank you so very much for this amazing video ! I have struggled for years asking different bakers to help me learn how to price but they just weren’t willing to hold my hand and take me step by step. I have gone on and off my small baking business due to pricing struggles. I believe the flavours of my baked goods is amazing however I am not the best at icing and decorating yet, especially cakes; I used to own a strictly cupcake business before. I used to think people were coming back to me for preference but I realise it could also be for cheap prices. I am going to try this and come with feedback, thank you
I can't wait to heat how it goes for you! If you're looking for help with cake decorating, check out my channel for hundreds of free tutorials on different techniques and designs :)
Absolutely incredible! What an excellent easy to follow tutorial. Thank you so much.
Thank you!!
This video was so timely for me. God bless you. I'm a beginner homebaker ❤
I’m so glad it came at the right time!
As always, you give such practical and useful advice. I know I undercharge for my cakes because I simply guess at how much they should sell for. All of what you said is applicable to by sewing business, too, so I am going to apply the same principles to pricing my goods. Thanks so much, Emily!
I’m so happy this was useful and that it will benefit your sewing business, too!
I own a cakery but we don’t make any profit at all. It’s so hard to charge the right price when people are not spending as much anymore. I’m a Brit, living in Canada where we currently have very high ingredient prices. Your latest video is the best yet and I’ll try your methods to check whether I am pricing cakes too high or too low. Thanks Emily 🩷
I hope it’s useful for assessing and maybe adjusting your prices. Owning a cakery is so challenging - I had one in Costa Rica for 3 years and I loved it but also could probably never do it again. Hats off to you! Would love to swap stories one day - where is Canada are you? I studied in Montreal and loved it!
Thank you so much for mking this extremely useful video. This task was quite intimidating for me. Your efforts are highly appreciated ❤
I'm so glad it was helpful!
Excellent information! Thank you so much!!!😍😍
I’m happy it’s useful!
Thank u soooo much for explaining it so well ❤❤❤
I’m happy it’s helpful!
You have explained very well thanks
Glad it was helpful!
Another absolutely amazing video from the British Queen of Cakes! Thank you for this very detailed and helpful video Emily!
I’m so happy you found it useful!!
This is so informative!! Thank youu
You're welcome! I'm glad you found it helpful.
This was so helpful, thank you! ❤
Glad it was helpful!
Thank you, Emily! I use a spreadsheet for each cake. With prices going up frequently, I'm constantly changing my table. But it's still the best way to go in my opinion.
Agreed! And the price increases are insane!
One of the best tutorials I’ve seen for this purpose! Many thanks for all your dedication! 😊❤🎉
Wow, thank you!
This has been very helpful.....😊
I’m so glad! Thank you for the comment!
This is a great video. Thank you for sharing. You're awesome!! 🥰
Thank you so much!
Hello, Thank you for this informative video. I am a beginner home baker. I bake cakes and sell them to a café, but my cakes don't have a lot of decoration. Therefore, to align with café pricing, I sell them at bakery cake prices. However, I use the highest quality ingredients and make delicious cakes. At the end of the month, I’m left with an amount equal to the cost of the ingredients (e.g., if the total is $100, $50 goes to ingredients and $50 is profit). It seems insufficient to me, but I’m also struggling to compete with the market.
I don’t account for any other costs. People around me say it’s a good profit, but I’m not sure.
Greetings from Costa Rica! Thanks for sharing this, very helpful.
Hello! My cake shop (shown in this video at 8:14) was in Costa Rica :)
Thank you. This is really helpful.
I'm so happy it is!
Thank so much
My pleasure! 😊
thank you so much. it really helps. For me i need to digest the met first.🤪
For me it's definitely something to dive into after a cup of coffee!!
This is a wonderful video! ❤
Thank you so much!
Thank you
You're welcome
Hi Emily, very detailed explanation. I am wondering how would you calculate the price for a wedding cake.. will the profit be higher??
There are a few ways you could adjust this for wedding cakes. You could increase your profit percentage or if you consider the time taken to consult and design a wedding cake then your time spent would be higher for wedding cakes, too. Materials might be more expensive like support for a tier cake, special presentation items, etc. And you might choose to allocate more of your insurance costs to wedding cakes than cakes for other occasions.
Hi, this is very clearly explained. I'm learning so much from your cake school. But all the maths side of it gives me anxiety. I have no qualifications in maths it's my weakness. I also struggle with knowing how to devide the batter too. So at the moment I'm just making what I specifically need.
It does seem intimidating at the beginning, but you'll get the hang of it with practice!
Im just figuring out how to do this. Ive had a couple of commissioned cakes but they have been for people close to me and i still feel quite inexperienced so some cakes for people close to me i charge less on as im using it as a chance to push myself (like my first sculpted character cake for my nephew's birthday last month)
Wow, congratulations on your first sculpted cake! When I started making cakes for friends and family I wasn’t comfortable charging for my time yet so I would only ask them to cover the cost of my ingredients. I found that charging higher prices increase the stress and pressure too much! But with practice and as your skills improve I’m sure you’ll get more confident and be able to use these 4 steps to increase your prices to cover all of your costs + profit 😊
@@BritishGirlBakes definitely increases the stress. Thankfully the cakes are my side hustle and not my primary job 😅 my main job is as a swimming teacher
It's very important to know your costs. I once donated a homemade creation to be sold at a bake sale for charity. The woman running the sale told me the price she wanted to charge for it. I had to inform her that the price she had come up with was less than the cost of the ingredients. It deserved a higher price. She priced it higher and it sold.
That's a great story and a good reminder of how important pricing is!
This is invaluable! As a former tax collector, I have seen people write off cost of lights, gas/electric and square footage used in a certain room. Very detailed!
Thank you! The laws in different countries vary but where I am, you can do that if a space is used exclusively for business purposes.
I am having hard time figuring out how to download the spreadsheet, it only opens up as a web page, any suggestions please?
It's saved as a google doc and when you open it, within the webpage you'll see a top menu (not your browser's menu - it's immediately above the spreadsheet). Click on File and then Download and you can choose to download as a file for Excel or Numbers or whatever program you like to use. Hope that helps!
Today's cake prices
You forgot public and product liability insurance.
That would be an indirect cost, like rent
@@BritishGirlBakes yes, I know. But given that your video is all about pricing cakes for business purposes, insurance should have been mentioned.
You have explained very well thanks
So nice of you. Thank you!