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- Joined Sep 13, 2009
Over the last few months (a year actually) I've been getting suggestions and requests to start selling my baked goods. I've been hesitant, for a number of reasons, but I'm kind of in a position right now to where I may be able to start doing so on a limited basis. However, I don't know where to begin. I've already got 2 orders for Thanksgiving (a pie and a cake) and just did a birthday cake. I know these are very early stages here, but it's a start, and I'd rather start small to "see where this goes"! I also anticipate more for Christmas, but we'll see. Anyways I have no idea how to price anything. I mean I've read some of the threads here and saw anywhere between 50% and 70% mark-up but I'm still lost. Please help.
First, for the time being I'm baking in a commercial kitchen (my Church has one) and for right now it's free of charge, as I've only done 2 things...but obviously if I start using it regularly that will be a cost for me right there. (sorry I don't know the cost as it hasn't come up yet...any idea what a fair price to rent a commercial kitchen say for 8 hours would be????) Second, right now I'm not using bulk ingredients (like 100 lb bags of flour or anything)....but smaller retail bags of flour etc...
And I'm not selling through a store, but basically word of mouth...(like the orders for thanksgiving, people just want a cake) with the potential to sell in a local coffee shop and a local deli/store. But again, what do I charge? Do different types of baked goods have different mark-ups? Cookies, versus pies, and cakes?
I don't want to "under" charge and then when I start renting the kitchen (if that happens) have to all of a sudden mark-up my prices to compensate. And of course buying commercial ingredients as opposed to bulk supplier ingredients probably makes a difference too, but my orders are just too small right now to order 30 pounds of powdered sugar...
Anyways, I don't want to bog down the question with too many variables, but just wanted to paint a half way clear picture here....any ideas suggestions on pricing? One order I have for Thanksgiving is a 3 layer, chocolate torte styled cake with a butter cream frosting...since I would never buy a cake like myself, (as I would just make it myself) so I have no idea what to charge. My ingredients cost came to (I think) around $10 for that cake....but if I add labor, etc...(and take into consideration a future kitchen rental) it seems like it would end up into the mid $20 range....that seems high, but again, I haven't bought a cake in ages, so maybe it's not.
Anyways any help would be greatly appreciated
First, for the time being I'm baking in a commercial kitchen (my Church has one) and for right now it's free of charge, as I've only done 2 things...but obviously if I start using it regularly that will be a cost for me right there. (sorry I don't know the cost as it hasn't come up yet...any idea what a fair price to rent a commercial kitchen say for 8 hours would be????) Second, right now I'm not using bulk ingredients (like 100 lb bags of flour or anything)....but smaller retail bags of flour etc...
And I'm not selling through a store, but basically word of mouth...(like the orders for thanksgiving, people just want a cake) with the potential to sell in a local coffee shop and a local deli/store. But again, what do I charge? Do different types of baked goods have different mark-ups? Cookies, versus pies, and cakes?
I don't want to "under" charge and then when I start renting the kitchen (if that happens) have to all of a sudden mark-up my prices to compensate. And of course buying commercial ingredients as opposed to bulk supplier ingredients probably makes a difference too, but my orders are just too small right now to order 30 pounds of powdered sugar...
Anyways, I don't want to bog down the question with too many variables, but just wanted to paint a half way clear picture here....any ideas suggestions on pricing? One order I have for Thanksgiving is a 3 layer, chocolate torte styled cake with a butter cream frosting...since I would never buy a cake like myself, (as I would just make it myself) so I have no idea what to charge. My ingredients cost came to (I think) around $10 for that cake....but if I add labor, etc...(and take into consideration a future kitchen rental) it seems like it would end up into the mid $20 range....that seems high, but again, I haven't bought a cake in ages, so maybe it's not.
Anyways any help would be greatly appreciated