How do I figure out how much to charge for a cake?
Ingredients are straightforward to consider in pricing, as you can find the price you paid for all the ingredients. Overheads should ideally include electricity, gas and water. You should also be factoring in prices of special tools, such as a star-shaped pan that you had to buy for this order specifically.
How do you price homemade baked goods?
Your prices should cover your cost of goods sold, or COGS, at the very minimum. The formula to calculate your COGS is: Cost per serving + Labor cost per item + Variable Costs + Fixed costs + Startup costs.
How much does a 10 inch round cake cost?
How do you calculate cake servings?
To find the cake serving size area, multiply the length and width of the cake slice. Now you know that you have a 468″2 pan area and a 4″2 serving size area. To find the number of servings, divide the pan area by the serving size area.
How much should I mark up my baked goods?
For example, if the total overhead and production costs of the baked goods you project you will sell, discard or donate each day is $1,000, and you want to make a profit of $300 per day, you will need to mark up your product 30 percent.
How much should I charge for labor?
Calculate Your Hourly Rate
Business schools teach a standard formula for determining an hourly rate: Add up your labor and overhead costs, add the profit you want to earn, then divide the total by your hours worked. This is the minimum you must charge to pay your expenses, pay yourself a salary, and earn a profit.
How many people does a 10 inch cake feed?
10 in cakes can be sensibly served to up to 25 people with each slice measuring about 1 1⁄4 inches across the back or about the width of a teaspoon. As with the 8 inch cakes, 10 inch cakes can be served event style. Cut event style, a 10 inch cake can be served to as many as 39 people.