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Price of my cake ? |
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#1 |
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Forum Member
Join Date: Jun 2009
Location: Birkenhead, Merseyside.
Posts: 9,712
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Price of my cake ?
I have been asked to supply a local tea shop with a chocolate fudge cake.
It will be a round cake, 9 and a half inches across and about 4 and a half inches high, filled and covered in chocolate ganache. They have also asked me for a price. How much do you think I should charge ? They also want a carrot cake and a Victoria Sandwich cake of the same size. They want to compare MY price with the price they are already paying for their cakes. (obviously, they haven't told me what they are paying now !) This is my cake - https://www.facebook.com/photo.php?f...type=3&theater |
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#2 |
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Join Date: May 2012
Location: Norwich, England.
Posts: 338
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Per slice, or for the whole cake Andy? It looks delicious by the way! If you ever need a tester...
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#3 |
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Join Date: Oct 2006
Location: Fort William
Posts: 22,296
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Work out the cost of ingredients, plus fuel for baking, delivery costs (petrol / diesel) and a reasonable amount for your time, then put a percentage mark-up so it's worth doing. Then maybe add a little more. If they won't pay that, then it's not worth doing. Also, look in competitors to see how much a slice costs, work out how many slices you'll get from your cake, then halve it to get your selling price.
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#4 |
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Join Date: Jun 2009
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Quote:
Per slice, or for the whole cake Andy? It looks delicious by the way! If you ever need a tester...
![]() ![]() The whole cake ![]() If I put the price too high, they'll refuse. How does £15 sound ? |
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#5 |
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Join Date: Jun 2007
Posts: 2,943
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Quote:
![]() The whole cake ![]() If I put the price too high, they'll refuse. How does £15 sound ? |
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#6 |
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Join Date: Jun 2009
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£15? It must have taken an hour to make and surely your time is worth more than that?
I don't want to frighten her off ![]() The thing is, I would like this cake to be the start of something big, so I don't want her to have a heart attack when I tell her - what she thinks - is too much.
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#7 |
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Guest
Join Date: Dec 2010
Posts: 2,305
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How much is a slice of cake these days? £2.50? If they get 10 slices out of it that makes it £22.50 for the whole cake, so you want to sell it at a price where they make a bit of profit and so do you.
Smudges dad's suggestions are the best way of working out the cost. Don't just pluck a price out of thin air - very bad business practise. Work it out. |
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#8 |
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£15? It must have taken an hour to make and surely your time is worth more than that?
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#9 |
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Join Date: Aug 2009
Location: Aberdeenshire
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You can get a very similar cake in Costco - I would say it's 10 - 12 " across, and it costs £7.99. They are the kind you would get in a restaurant for dessert, and proper chocolatey. Their carrot cakes are the same price and size. I don't know how you could price your cake to compete with those prices !
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#10 |
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Forum Member
Join Date: Jun 2009
Location: Birkenhead, Merseyside.
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Quote:
Work out the cost of ingredients, plus fuel for baking, delivery costs (petrol / diesel) and a reasonable amount for your time, then put a percentage mark-up so it's worth doing. Then maybe add a little more. If they won't pay that, then it's not worth doing. Also, look in competitors to see how much a slice costs, work out how many slices you'll get from your cake, then halve it to get your selling price.
I'll work it out tomorrow. It's getting late now and I've been up since 7am, my brain can't cope with a little simple maths at the moment !
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#11 |
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Join Date: Jun 2009
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Quote:
You can get a very similar cake in Costco - I would say it's 10 - 12 " across, and it costs £7.99. They are the kind you would get in a restaurant for dessert, and proper chocolatey. Their carrot cakes are the same price and size. I don't know how you could price your cake to compete with those prices !
My chocolate fudge cake has 8 ingredients
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#12 |
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Join Date: Aug 2009
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There is probably a list of ingredients (preservatives, E numbers etc) as long as your arm !
My chocolate fudge cake has 8 ingredients ![]()
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#13 |
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Join Date: May 2012
Location: Norwich, England.
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At work, we times whatever the cost of the product (ingredients/petrol in your case) by 1.8 on the calculator. So if your ingredients cost the same as the Costco fudge cake (£7.99), that method would make it £14.38... a cheeky round up to £15 would make it the same as what you were looking to sell it at anyway.
Hope that helps!
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#14 |
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Join Date: Jun 2009
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Quote:
At work, we times whatever the cost of the product (ingredients/petrol in your case) by 1.8 on the calculator. So if your ingredients cost the same as the Costco fudge cake (£7.99), that method would make it £14.38... a cheeky round up to £15 would make it the same as what you were looking to sell it at anyway.
Hope that helps!
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#15 |
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Join Date: Feb 2007
Location: Scotland
Posts: 990
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American but might be helpful: http://www.cakeboss.com/PricingGuideline.aspx & http://jasonkraftblog.wordpress.com/...icing-formula/
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#16 |
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Join Date: Jun 2009
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American but might be helpful: http://www.cakeboss.com/PricingGuideline.aspx & http://jasonkraftblog.wordpress.com/...icing-formula/
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#17 |
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Join Date: Aug 2009
Posts: 5,111
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Quote:
You can get a very similar cake in Costco - I would say it's 10 - 12 " across, and it costs £7.99. They are the kind you would get in a restaurant for dessert, and proper chocolatey. Their carrot cakes are the same price and size. I don't know how you could price your cake to compete with those prices !
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#18 |
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Join Date: Oct 2006
Location: Fort William
Posts: 22,296
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Quote:
Teashops, cake shops, patisseries etc. are not in direct competition with the supermarkets. Customers will pay a premium for home-made cakes
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#19 |
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Join Date: Aug 2009
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Quote:
This isn't someone selling their cakes retail, but wholesale with someone else taking a slice (sic) of the profits.
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#20 |
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Join Date: Jan 2006
Location: Jackie's World
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A tea shop will easily recoup £15 selling it by the slice. It has to be worth your while AND theirs.
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#21 |
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Join Date: Jun 2009
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Quote:
Teashops, cake shops, patisseries etc. are not in direct competition with the supermarkets. Customers will pay a premium for home-made cakes
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#22 |
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Quote:
A tea shop will easily recoup £15 selling it by the slice. It has to be worth your while AND theirs.
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#23 |
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Quote:
So £20 is a reasonable price then ?
Where is the teashop located? What is their clientele like? Get a secret shopper to go in and have tea if you don't know this information already. |
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#24 |
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Join Date: Mar 2007
Posts: 9,568
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Quote:
So £20 is a reasonable price then ?
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#25 |
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Join Date: Jun 2009
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There's no point just trying to come up with a price that 'sounds reasonable' without taking into account the cost of producing it, and equally, the sales practices of the retailer in question.
It comes to £14.12. Multiplying by 1.8 (as Imej suggested) = £25.23
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