How to Price Cakes for Higher Profits
Where there is cake, there is hope. And there is always cake. ~ Dean Koontz
A party without cake is just like a meeting. You cannot imagine your special day without cake. Today there are so many customization options available for cakes, you just think of one and you will get it in reality.
A baker goes the extra mile to bring your crazy imagination on a delicious cake. But there is always a confusion among bakers regarding what should be the ideal price for a cake. How do you know the right price for the cake?
There is no hard and fast rule for calculating a perfect price of the cake. It depends on various parameters such as cake ingredients list, used, time, overhead and a lot more.
So, the very first thing you have to do is to decide a base price for the cakes in all categories based on the above parameters and then add on the price considering the following factors.
Location is one of the important things to keep in mind when you are deciding the price of your cake.
Is the location far or crowded or is it a remote area?
You must carefully study your delivery locations and should know how much profit you can make in those areas.
You have to keep these things into account when you come up with the prices.
- Competition in category
There are different varieties of cakes and you must focus on the cake categories that you bake. For example, you make cartoon cakes, wedding cakes or adult cakes, you should know the competition in your category.
If there is a high competition, you may have to lower down the price. You should see what is the price that other bakers are charging for the same. This helps you to understand the pricing system better.
So mostly this time the price becomes a little higher for some of the cakes. You should charge for your cakes accordingly.
One of the major factors in considering a cake’s price is the deadline. If the client wants the cake to be delivered in lesser time than usual then obviously he has to pay more.
The baker has to engage more resources in less time to complete the order. So, definitely the overall delivery of the cake will be a little expensive.
The reputation of bakers plays an important role in calculating a cake’s price. Anything that is reputed comes with a trust of the audience.
If you order a cake from such a place, then you will experience better quality and services but then the charges will be a bit higher.
So, do consider this thing while coming up with the price of the cake.