How do y'all figure out your pricing?

[MimzyWhimzy]

so... ive got spreadsheets w/the cost of all my ingredients, and I've priced out all the local similar businesses, so I know what range I'm safe in.
....but how do you all price your man-hours? and what about stuff like lawyers fees and accountant fees, rental fees.....
how can i possibly price my cakes without bankrupting myself or scaring away my clients???

[Amanda]

Find out what other bakeries and home bakers charge in your area. That will be your best idea of how much to charge. I charge smack dab in the middle, because that's what I feel my talent is worth. I don't figure out how much ingredients cost or any of that. I did one time figure it all out, plus added minimum wage for myself for the decorating, and let's just say I don't think Donald Trump would have paid that price...
Hope that helps!

[cakebaker]

I don't have the kind of costs you're talking about...lawyers, accountants and rental fees.

I price just like Amanda does..based on the prevailing rates.

[MimzyWhimzy]

Originally Posted by cakebaker

I don't have the kind of costs you're talking about...lawyers, accountants and rental fees.

I price just like Amanda does..based on the prevailing rates.

I live and work in New Jersey - it is totally illegal to do any kind of food related business here without liability insurance, a registered business name, and a commercial kitchen. We can not, under any circumstances bake or prepare anything for public consumption out of our homes. We have to be licensed, inspected and registered w/the health department, we need food handler's licences (the courses cost a pretty penny), and a whole slew of other things.... hence all the fees.

I have done my market-research. The average celebration cake begins at $250 w/a minimum order of 40servings, and wedding cakes start at $500. It sounds a little shocking, but we're right outside of NYC, and compared to their prices (STARTING at $16per SERVING), we're quite reasonable!