Are you a home baker trying to turn your hobby into a profitable business? Well, you're not alone! But, before you start whipping up cakes and charging top dollar, there are a few common mistakes that many home bakers make when it comes to pricing their cakes. And trust me, you don't want to make these mistakes because you'll end up with a lot of unsold cakes and a lot less dough (see what I did there?) lol
Not considering the cost of ingredients. This is like baking a cake and forgetting to add sugar – it's just not gonna be sweet! Make sure you're keeping track of how much each ingredient costs and factor that into your pricing.
Underestimating the value of your time. Just like the cost of ingredients, your time is valuable. If you spend hours upon hours baking and decorating a cake, you should be charging a fair price for your time. Remember, time is money and you're not baking cakes for free.
Not taking into account your location. Just because you're a home baker, it doesn't mean you're not subject to market forces. Are you located in a fancy part of town where cakes are selling at a premium? Or are you in a more rural area where cakes might not fetch as high of a price? Make sure you're taking into account the local market when determining the price of your cakes.
Pricing your cakes based on the cost of just your ingredients, take into account the cost of your ingredients, plus your time, your business overhead. The fact that your cakes are homemade & not mass produced makes them even more special. Don't sell yourself short by under pricing them.
Not accounting for packaging and delivery. Just because you've baked the cake, it doesn't mean your job is done. You still need to package and deliver the cake to the customer. Make sure you're accounting for the cost of packaging and delivery (to & fro) when determining the final price of your cakes.
The bottom line is, pricing your cakes is not a one size fits all approach. You have to take into account all your expenses to make sure you're pricing them correctly and profitably.
This is Chef Letty, reminding you to...
"Stay SWEET & make that $DOUGH!"
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