How to Properly Price Your Cakes for a Profitable Business: Tips from Cake Mamas | Janelle Copeland
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- เผยแพร่เมื่อ 21 ส.ค. 2017
- Welcome to this video by Janelle & Eddie Copeland from The Cake Mamas, where they guide you on how to properly price your cakes. As a surprising fact, our industry is the only one that doesn't factor in profit. That's why it's crucial to determine the cost and price of your cakes accurately. Don't be afraid of the numbers; they are what they are. As the saying goes, "the cost is the cost." Even high-end brands like Louis Vuitton don't care if you can't afford their products.
Ask yourself, are you running a profitable business, or is it just an expensive hobby? Share your thoughts with us, and let's discuss how to turn your passion for baking into a thriving business.
If you enjoyed this video and want to see more, hit the like and subscribe button. If you're a passionate baker looking for a community that shares best practices and tips on starting or running a cake business, join us on Facebook in our free private group, CAKE CENTS. Here, we teach bakers from all over the world how to go from HOMEFRONT to STOREFRONT and how to turn their passions into profitable businesses. Share this invite with your business bestie and let's grow together!
Get our FREE PRICING TOOLS HERE: www.pricing.janellecopeland.com
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I have sat behind a desk for 40 years. Unappreciated. I plan to retire and finally do what I like and enjoy. I want to start with my blue ribbon fudge and work into selling cakes. Love your videos. Thank you.
so glad it resonated with you!
I wish more bakers/cake decorators saw this. We need this knowledge to get out there. I have realized I undercharge and people think I'm expensive. We and people don't see the worth in our work
Thank you so much for the love! Definitely share! The more we can educate the better our industry will be!
i just watched this and i want to say i had no clue about all that u talked about so i listened and i watch cake boss so i went to there website and went to see what they charge now what i seen on his website you are totally right about the price ..so i looked at a 10 inch Rosette Bouquet - GB509A
10 inches | serves 25-30 people
12 inches | serves 35-40 people
14 inches | serves 45-50 people
the 10 inch cake alone is 115.00 not counting what frosting you would like or if you want choc or red velvet and all the other things thank you for this ..im just starting out
PTP here! ;-) LOVE THIS Janelle: Louis Vuitton doesn't CARE if you can't afford their handbags, because they're not for everyone! AMEN!!!
I just want to thank you for all the information. I know that I under charge for my services but after watching and listening to you I realize all the time i spend on creating one cake. And moving forward I realize it is okay to let the order go and work toward to increasing my customer base with people who are willing to pay for my skill set and creativity. Again I say thank you and I am looking forward to moving my business forward with the knowledge I gain from your organization.
I wish that everyone that creates custom cakes would watch this!! It’s SO HARD to compete with pricing of other people that are cake “hobbyists”- meaning that they do it on the side and aren’t concerned about paying bills or supporting a family.
If every caker charged what they should and people could choose a cake artist based on their specific talents it would make things so much easier! We wouldn’t have to educate every single potential customer on what “custom” means. Customers would just know that they can’t get a Kardashian cake for a Von’s price.
Thank you so much for taking your valuable time to share this knowledge.
Omg! Where was this video when I started!?!?! It was here all along 😫. This was such an eye opener. I have an accounting degree and I knew better. But I kept hearing "people won't pay for that". Lies, lies I tell you! People pay $20 for 1 plate of food at a restaurant for 1 person. These cakes will feed 20 people and we are charging what, $2 per slice!?!?. Thank you soooooooo much! Even restaurants charge like $6 for there frozen cake slices. I have a new mind about business now.
Yess! We hope you took what we said and used it with your business! If you haven't make sure to join our free facebook group- link in description or you can visit www.janellecopeland.com for more tools & resources
You expel confidence in those who are just getting started.
Your last sentence in the description box made me think that it's time to ask for higher price and go to the next level because till this moment I'm just running an expensive hobby
You have to value your time and worth! Your business and yourself deserves that!
YAAASSS! i have to re-watch this every 6 months until im ready to start my business, lol. this is my 2nd or third time watching it now. i get pumped every time, haha
Glad we can give you the motivation to continue to push yourself!
wow thank you for talking about the profit vs my salary. i thought my profit WAS my salary.
thank you so much for this video!!! im sure yall might be tired of reading comments like these, lol, but i am SO READY to start my business. after 3 years of decorating cakes i only now have the confidence in myself and am learning my worth. im excited for the future :). this video is right on time for me :)
OMG!!! Thank you very much you guys. This video is such a big help for me. I am literally just starting my bakeshop at home and I didn’t have any idea how to price my goodies. And so, for me to be able to price them I decided to search on youtube on how to properly price cake. Then I saw your page and videos. Now I don’t have to hesitate to price my goodies and cakes because of what you taught to us bakers. Bless you and thank you very much! Hope to see more about baking business. 🙏🏻
This is the best cake pricing info that I have received! And you’re right: people will pay. If not they aren’t your customer. So eye opening when it’s physically broken down into dollars and cents. Thank you!
Thank you so much for your wisdom, understanding on pricing. you have given me so much clarity and understanding....here i thought i was charging to much for my homemade from scratch cakes and i haven't been charging enough. Thank you and I definitely will be looking out for more insight. Be Blessed and continue to do what you do.and most of all for keeping it real.
I love this video and the breakdown of each topic which is hard to find. Thank you so much!!
Just stumbled onto this video. Outstanding and invaluable information. Thank you!
This is so confusing to me! For something like a spatula (that maybe I had before I even started baking and that lasts for years)...how do you charge for that? Seems like each cake would START at $300 even for a 6inch. It’s exploding my mind a little bit lol
Also, how do you plan when you own a business that sells something that’s so “unnecessary”? I mean, cake is vital to my life, but anyone can bake a boxed cake for a birthday if they REALLY want a cake so how do you plan when you maybe have a few orders one week and more than you can handle the next week?
Also, I have hairdresser friends and their overhead is pricey (if you own it)...the space, their equipment (hair washing stations, foils, stuff for the bathroom facilities, air freshener, a computer for bookings, etc), their stalls etc. They have a lot of expenses we don’t think about because that’s not what we do.
If everyone thought about the time and effort and overhead, we’d all think twice about bellyaching about prices (or we’d learn to do it ourselves lol). That said, everyone’s on a budget and I can’t fault people for not wanting to blow $500 on a cake if that’s not the centerpiece of their event.
P.S. I love you guys ❤️
Thank you very much for the training. Everything is much clearer now.
Wow! You hit us bakers on point!!! Thank you
Thank you for the great lesson, just what I needed to hear!
I am a man that loves baking and would love open my own bakery. Just love love what you have said , brings tiers to my eyes we are artists and we must know our value. O yes thank you for your most valuable time nothing is ever in vain, bless you two.
Thank you for sharing Marc! Hopefully you've joined our Private Facebook Group, Cake Cents. If not, the link is in the description above! ;)
I loved this! Thank you so much!!!!!!!!!!
Unbelievably enlightening!!! Thank you both.
Im scared to not get customers if they think I’m charging to much when reality it’s what my work is worth 😭
How happy I am I found your life changing inspiring video. Blessings to you and your husband for your knowledge and thoughtfulness. Breaking it down in simple form; making it easy for someone like me. This helps with my decor/staging business I desire to get off the ground in near future. Blessings to you. New subscriber
LOVE THIS!! Thanks for the motivation
GREAT job!! Thank you!! This is the best video on cake pricing!!
WOO HOO! Glad to have added value! Are you in Cake Cents? If not, here is the link: m.facebook.com/groups/133781940554938
Watching from Guyana in South America, enjoying u guys
Thank you so much for this video!! It made some clarity and sense! Now I know what to actually charge! 😊
Thank you so much, this video very informative. God bless
Thank you for this!
Thank you for this it's so informative! People always say no to me when I price it like this because they can go to the supermarket or a bakery n get something for $30🤦🏻♀️ and your story about your friend getting the cake from someone else, lol that's my life!! I get no support from mine!🤦🏻♀️ You guys are a powerhouse.👍🏼 I've watched you on FoodNetwork Janelle and you're so awesome!! 💕💕
Thanks for watching! Make sure to get into our Free Facebook group-link in bio!
This is beyond excellent..You guys covered things I didn't think of ❤❤❤
Thanks for loving it! Make sure to join our FREE facebook group, link in the description!
Thank you so much for this
Preach sister! Such a great video!!
Hello, thank you so much!! I agree with you, we need to stop lowballing our cakes from scratch, or revamped custom speacialty cakes...what I learned!!# familyNotmy cakes!! When a relative asks for that custom bday cake (Free) I ask them for the budget for the cake they have from least to highest, then i shop around and BUY it from a business and have THEM pick it up! I do not give my work away for free to no one. I'm not non for profit. and next time, I host a party and showcase cakes at my party, they can taste the difference and I yell them this is business not personal.
I just watched ur very very informative video and I jus want to say thank u guys much for ur honest info I did charge way too little for my cakes in the pass I used to hav an at home cake business so no overhead cost I jus charged for ingredients and labor not even for equipment cost and I spent hours on the designs and cost way below the price and I had lots of customers and they all thanked me because I was so cheap and did great work and my cakes tasted good I had many returns I'm opening my new cake shop next month God spare life and now I hav to charge for over cost and all the other stuff u guys mentioned I would not hav charged that much for that size red velvet cake thinking no one would pay for it but like u said and what I hav been telling friends lately that cake is a luxury if u can't afford then don't get it so u guys jus reassured that for me and I'm hiring a help even tho I'm now opening and don't know if the business wil do well enough to afford help but I want to b prepared in case at my opening week I get a rediculous huge order I won't want to b looking for help then again thank u guys a million God Bless
Hi Melisa! Thanks for sharing your thoughts! It's absolutely our pleasure to help! Are you in Cake Cents? If not, here is the link: m.facebook.com/groups/133781940554938
I Cribb my job a year and a half ago and I started working from home doing macaroons and I want to open my store now and I need all the devices that you are doing. Thank you so much your videos are wonderful.
Thank you so much for teaching me my work value I learn so much and I also realize that is so...........much true what you guys are saying, LOVE YOU GUYS!!!!!!!!!!!!
Yay! Glad to help!
Thank you for your advice and support
You're so welcome!
Hi just posted this link on cake central!! its very empowering!!!
Great explanation between salary and profits. I am glad i landed on this video which l really needed. I have been under charging in my home bases business and im grateful for your trainings. Would love to join yout group to kearn and grow
Thank you!! Thank you!
You're welcome! We're so glad it served you.
They should give you guys a show! 👍🏽👌🏾
hahaha Thanks!
wow i seriously cant believe this information!! why dont cake designers know this? we need to get this information out there! this is so motivational!
Thanks for being here! Yes we do! The more we educate the more consistent our industry will become!
Very very helpful! Thank you.
You're welcome!
I've been meaning to take that step and start a cake business from home but whenever I speak to people about pricing they all expect an 8inch 4 tier cake to cost no more than £40. Sadly, looking at other bakers in the community that seems to be the average pricing!
Wal-Mart is charging is $64 for a 3 tier cake and people are comparing the price but I have learn that you can miss what you didn't have before. I price my cake(s) base by the time, difficulties and cost of the both ingredients and equipments. Some people may thing that I am to expensive but they will go to Lulu is Scarsdale N.Y and paid $10/$12 per slice for a simple buttercream cake
Which you should be! Always charge for your time, difficulty and ingredients going into your product!
Awesome! I know what I'm worth and everything it takes to make a cake & edible art cookies!
I just wish customers would appreciate it or understand it.
Im in southern part of Africa and finding yoir training excellent . Im learning a lot
HI, I just found you guys and I am glad I did. Thank you for all the info I find it very valuable. I have a question though... some people have told me that if I buy a 2 pounds of flour and the recipe calls just for 6 tablespoons of flour, I should factor the entire 2 pounds price anyways because if the 6 tablespoons (for example) comes down to cents at the end of the day I wouldnt be making any profit. What are your two cents on this one? their rational is that most of us dont buy in bulk but retail so it wouldnt make any sense to brake it down. Whereas if we bought the ingredients in bulk of course that would be totally different and that is how restaurants and bakeries do not home bakers that we probably dont have that many orders. Thank you
I would say you should BE AWARE of what the costs are of EACH ingredient... Example: If a customer wants to order a German Chocolate cake, which has lots of coconut in it (something you wouldn't normally have, or buy in bulk), then yes, add that in. Because you are going out of your way to add things to your pantry that you wouldn't normally need/have. That wouldn't be that significant of a cost though, we're literally talking a few dollars.. Make sense? If it IS something you use often, then no, I wouldn't factor in 5 lbs of flour if you only used 5 tablespoons. But what I DO TEACH is that you should always convert the costs down the pinch! Example: If 5 lbs of flour costs $3, and 4 cups of flour equal 1 lb., there are 20 cups of flour in a 5 lb. bag. 20 divided by $3 is $0.15 per cup. There are approx 16 tablespoons in a cup, so then each tablespoon would be about $0.01. (Most cake recipes call for cups, so I would just stick to adding $0.15 per cup to the cost. (Now I'm not sure what the actual cost of a 5 lb bag of flour costs, but that's just an example so you can understand the thinking behind it.) Hope that helps! ;)
thank you guys. yes, I had been told if I buy a 12 egg carton and use only 4 in a recipe I should factor in the entire price of the 12 eggs in that order. thanks for clarifying
Basically, we are figuring out how to break down each part of the business to come to an average 'base price/starting point' to each order. Right?
Think about a Happy Meal, I can get more nuggets and fries if I order differently but my son wants that red box with the Golden Arches and cheap toy. Those prices are offset onto me-hope that makes sense lol !
Whether you bake from home or a storefront you still have many of the same things to consider when it comes to pricing; overhead, labor, ingredients, etc. I'm a home based baker, and breaking down each section ensures that a portion of the these costs are 'offset' towards the customer so I can turn a profit...and that's just the business' profit not what goes into my pocket. I think the simplest way to figure out much of these costs is to think to myself, 'This is just like the minimum cost to turn on my oven,' if I'm charging anything lower it's not worth it-I'm losing money before I've even considered my hourly rate, any profit, etc.
Am I understanding correctly?
And on the opposite side, running a storefront, yes my overhead expenses (utilities, advertising, insurance, rent, taxes, telephone) are going to be higher. Plus the Direct Costs; but having employees, commercial equipment (that can bake more items at once/faster) you can generate more product, sales, etc.
I have been so motivated watching your videos, listening to your advice, resources and so much more! I just ran across Cake Cents 3/4 days ago and I can't look away 😊
You and Eddy work so well together, it's obvious that you share the same passions and I really love that about you guys-you compliment each other so completely it's refreshing to watch. You are (both) an incredible teacher, you have a wonderful way of keeping viewers engaged, being incredibly detailed without putting me to sleep (most do I'm sad to admit)! Your passion is evident and your excitement is contagious and inspiring. Forgive my babbling, but I can only imagine the time & energy these videos/posts take-thank you for your generosity it means so much to so many of us 👏🏻
Sharon M
I love, love, love the passion!! Your passion and seriousness is admiring💜 and thank you for your wisdom and your time. 🙏
Thank you for being here!
I recently made a cake in NYC an 8 inch unicorn cake without the horn, and 28 cupcakes and my friend decided that bc she bought the ingredients, she doesn't have to pay.
Hi I am from Australia Tank you so much for explaining so much to me it now makes sense of just how much the costs are and what I am worth
Sorry it has come up my husband lol my name is Christine
Watching from south africa
Fantastic this is great,all true,what you say, thank you l am doing this not charging what l am worth,l live in Australia and our average wage, is $22 an hour so it's hard to get someone to pay that much they are really stingy here, in perth,any tips would be wonderful thank you.
Perhaps you aren't marketing your product to the right audience! The right client will always pay for something they see value in.
Cakes is a luxury. It should be meant for lucrative people. Charge accordingly..
Hi. Would you recommend purchasing a cake pricing program something like the cake boss?
We offer a program, Passion To Profit, you can find out more information at www.janellecopeland.com
This was amazing!
Question.... Would you trade service's with another Entrepreneur if the final cost is the same?
Like $150 worth of pictures for $150 worth of cookies or cupcakes??
Great Q! I'm gonna do a video to answer this! I have SO many examples of when I've traded for something more or less valuable!
Your audio is very low, even when I put my speakers on maximum, I am still finding it hard to hear everything that you are saying
HI I just seen you, you guys are too cute, its so funny, the XBOX cake i did. im new to pricing and I was nerves to quote a price. I know I under charged. I know I did. My thing is that the person said why wont you give me a price just make a square cake or even out of a box. I thought to myself WHATTTTTT! and she wanted an EXBOB cake with a controller, that kind of disturbed me. LOL they really don't know what goes into making a custom cake.
Okay so I get how we need to
Charge more to get a profit so my question to you is if someone asked you to make them a red velvet cake you charge them $200 and something (I forgot the amount). I don’t sell per slice so I’m just trying to get an understanding here
We have a full breakdown of how you should be charging from cost to ingredients to charging for your time. Ultimately it's going to vary based on location.
❤️❤️❤️
Great preswntation, I do however think you should have a video that looks at equipment, marketing & profit in more detail. For those who are interested like myself. I belive if you are going to do something, try to get it done right.
Can you increase the volume, please?
Can you give me advice with charging prices for me ,when the wages here are double almost thank you
Make sure to check out our free facebook group- link in the description, we touch on this often!
you also mention that there is a scarcity of the craft we do ( the type of decorations on a cake, design, technique , etc) is that correct? did I understand correctly? because I can tell you that the industry is highly saturated with sugar artists and genius cake decorators nowadays and you can even find "custom" cakes out of a regular bakery; and because there is a lot of competition, then some would charge little for their creations in order to win...cheap always wins... some say
I don't recall saying there was a "scarcity" of decorators... (What minute was that?) Especially because yes, there are TONS of decorators in this saturated industry... However, what is SCARCE is people that actually take the time to price out their cakes properly...Most are just throwing prices out there, and THAT is what's hurting our industry and the value we can command. Make sense?
yes !thank you, sorry I meant a scarcity of a specific skill that people cant get out of a grocery store. thank you so much guys for the info it is key.
rutgenesis I
How about cookie pricing?
So If I accidentally under priced out my treats by $100 do I go back and tell the customer?
I wouldn't. You just learn from there. But you could also explain to the customer that you should have charged a certain amount since doing the math so you explain to them what the product is worth.
Hi I'm Robert from Trinidad
Nova Scotia
Lake city fl.
Not sure how to break down the cost of eggs, since I have chickens
Hello! It is very hard to hear what's being said. I even used my headphones, still could barely hear what's being said.
Thanks for the feedback! We'll make sure our volume is high next time we record!
Trinidad
I have been robbing my own self , wow , thanks a lot
They def don't mind charging and most ballon artists use certain balloons and won't use the cheap balloons
Honolulu
Can't hear you
England hi
I couldn't hear what you two were saying.
Thanks for the feedback! We'll make sure to check it out.
Wow... you guys must charge a ton of money for your baked goods.
We would charge according to our cost of ingredients, labor, and area. Everyone is going to charge differently depending on their cost of ingredients, how much they want to pay themselves and employees, plus what state they live in, the cost of living is different everywhere.
I can't hear you I see your mouth moving but no words are coming out loud enough to hear you
your comments about mass production and luxury brands.. . .. everyone can afford that walmart cake.. no fancy name, no fancy decor.. no demand for respect.. or they can come to me and get a 100 percent quality cake.. made with real butter, made with vanilla paste or beans.. be decorated exactly the way they want.. yes pay the price.. my quality demands respect.. box cake full of chemicals does not..does a plumber or furnace guy drop his price for you?? noooooooo his tools, his education and his time demand those prices.. and yes some will quote you cheaper, but then I wonder is his workmanship the best?? is his reputation all that good?? has he done so much shoddy work that noone wants to hire him so he has to lower his price significantly just to get the business.. in the world of construction.. when a big job comes up the companies have to put bids in.. alot of times the lowest bid with the most promises gets the job..( well they use to) then the finish date ends up delayed , the construction company runs into issues cuz they dont have the funds to fix their equipment that broke down..ect ect ect.. then down the road you hear that company claimed bankruptcy.. so now its not so much the cheaper guy getting the bid.. its the one who performs and exceeds over and above his promises...alittle more money to hire his company??? you bet.. but hes not costing you money to redo the job.. hes not going way over the allotted time and charging you.. and your gonna get exactly what you wanted..and not only that .. before you know it.. that construction companys name is all you ever hear.. and Guess what.. at no time during the bid did he cut his throat and take way less to run his business just to get that job..