Prices of Homemade cakes...

Rainbow_Bright

Hello,

A friend has asked me to provide two cakes for a party - a chocolate cake and a Victoria sponge with strawberries and fresh cream. I would gladly only charge ingredients but she wants me to look at it from a business perspective i.e. charge for time, creativity etc. The thing is that I don't want to over charge but I would like to be fair. I am making a decorated 8 inch chocolate fudge cake and a 6 inch Victoria sponge. I have contacted a few bakeries to get an idea - the chocolate fudge ranges from €6.99 - €40 and the Victoria sponge from €9.75 - €25... not much help as there is such a vast difference. Ingredients and decorations for the chocolate cake will estimate €23 whilst the Victoria sponge just under €9. Boxes come to €5.84.

Would €40 be too much ?

Any suggestions?

Thanks

Mince Pie

Good article to give you an overview on how to figure costings. Just as an aside, you shouldn't be charging if you don't have relevant insurances etc.

http://www.cakeboss.com/PricingGuideline.aspx

Cathmandooo

Mince Pie wrote: »

Good article to give you an overview on how to figure costings. Just as an aside, you shouldn't be charging if you don't have relevant insurances etc.

http://www.cakeboss.com/PricingGuideline.aspx

Regarding the bolded part, why's that?

For example, if I asked a friend, who enjoys painting, to help me paint my house, do you think I should let them pay for the paint and for the tools? Absolutely no way would I do that, the paint and tools along with refreshments and perhaps dinner would all come out of my pocket. It's unlikely they're insured or running a professional business but I ask them because I know they're good at it.


To answer the op, personally in that situation I'd suggest covering the cost of ingredients, cake boards, icing, decorations and boxes and give that total figure to your friend stating that it covers all your costs. It's up to your friend if they want to add in cash for labour.

Mince Pie

I totally agree, get your friend to cover the cost of ingredients etc but if you are doing it as a business then insurances should be in place. More as a protection for yourself. There are some right horror stories of people making stuff then getting sued.
I make cakes myself as favours to friends and family but I've also done it as a business when I lived in the UK.
Its a case of finding the balance between a hobbyist and doing it as a means to make money.
i.e, if you are charging then its a business. If you are getting a donation towards cost its a favour.

phormium

Mince pie is 100% correct re the insurance.

A friend helping you paint the house does not have the potential to make people ill. Fresh cream cakes are actually considered higher risk by EHO's than others and there are fairly onerous conditions re prep, storage etc. The last thing you want is someone trying to make a claim against you.

Now of course nothing will probably happen, you would be very unlucky if it did but that's the whole point of insurance, and of course you should do your friend a favour but be clear it is a favour, if she wants to give you an extra gift other than the cost of ingredients then that is up to her.

Cathmandooo

I completely agree about having insurance for a business of selling cakes, but that's a whole different kettle of fish to making a cake for a friend. I realise the friend suggested billing her like from a business but that was her just being kind and appreciating the work involved, that's not to say the op is setting up a business.

I do think the painting comparison is valid, someone making a claim against you for being ill from a cake is as likely as someone making a claim against you from them falling off a ladder in your house while painting. I don't see the difference. Personally I'd hope to not meet the type of person that would make these claims though, I'd like to think they're few and far between.

BTW I took 'charging' to mean any money exchanging hands. In this case I'd 'charge' for the incurred costs given the cake was requested rather than offered.

Ms.Sunshine

I dont think 40 would be to much. 20 euro per cake is a good price for a cake for a friend. Realisticly if you were charging a customer you could charge 20 Euro for the sponge if it was not decorated in any way (ie . No Icing etc.
The fudge cake you said has decorations on it. You could charge around 30 euro for that.