For my full pricing course, click here: HOW TO PRICE YOUR CUSTOM CAKES FOR PROFIT
The most common question anyone ever asks on cake forums is "how much should I charge for this cake?"
Thing is, that isn't a question that anyone can answer for you until you've done some homework. Most of the time people start by figuring out the cost of their ingredients. I think that you should start by figuring out the cost of your time.
Here's an article that was suggested by Katrina from Sugarland. It goes over things to take into account when setting a salary for yourself. Keep in mind that when you're self-employed you do have to take taxes, retirement, healthcare and all other expenses into account when you set your prices. It's all part of what you'll have to be responsible for if you work for yourself.
Another thing the article mentions is assessing your local market. If you already have ninety million custom bakers in your area, you might not be able to support yourself with any kind of salary that would make sense. If you look at what salary you need to make first, then compare it to what a custom cake business would bring in, it might end up being something that you don't want to do because it wouldn't be profitable.
If you're looking at cakes as a business, you need to remove the "oh I love it so much" aspect and really see whether it's feasible as a income source. If you want to make a decent income you need to set a decent salary for yourself and stick to it.
Once you figure out how much you want to make per hour, how much you have to make to cover expenses, and the cost of your ingredients, that's when you can start pricing your cakes. If you're just pulling figures out of the air you'll end up making $5 an hour. Do some homework beforehand to make sure the price of your cakes reflect the salary that you should be earning in a "real" job.
Kara Buntin owns A Cake To Remember LLC, online cake supplies at www.acaketoremember.com and www.acaketoremember.etsy.com