Wondering How To Price Your Cakes? Let Me Show You How

I decided to repost this article that i posted some time back on how to price your cakes. You have to realize that once you get your pricing sorted you can now move and pay attention to other important aspects of your cake business like marketing.

Another reason why you need to price and cost properly is that you will determine the profit your business makes and you can now know where to reduce costs and when you can give discounts without you losing money

Here are the basics so you can make a start on pricing your cakes for profit.


pricing masterclass 3.jpg

In this Masterclass you will learn:

  • How to gain confidence in pricing and selling;
  • How to market to the right customers;
  • How to price cakes easily without stress;
  • Customers relations: How to deal with customers so they accept your price always;
  • Systems you should put in place to grow your cake business



1: Labour costs

Step 1 is labour, often the undercharged part of the cake pricing formula. However, when you know you are being paid a decent salary then you making a cake becomes more enjoyable.

But if you aren’t getting any good wage, then it can be like a chore or a job and you will feel demotivated. You do not want to work for nothing.

To help you gain a control on the labour aspect, make a note of what you honestly want your hourly rate to be. This can be anywhere from N500 – N5,000 an hour. It all depends on you, your skill level, years of experience.

If you are just starting out, you may charge N400- N1,000 an hour, When you start getting better in your skill level, you can increase your hourly rate to maybe N1,500 or N3,000 an hour.

So now that you know your hourly rate. Next start to monitor how long each type of cake takes to create. Record everything, from the initial enquiry, shopping to the mixing, baking, cooling, cleaning, decorating, delivery, set up, etc.

So if it takes you 3 hours to do a vanilla cake and your hourly rate is N1,000 an hour, then your labour wage/salary is N3,000.

Do this for every cake you do and make a note of it, then you will have a record of what to charge for the cakes you sell.




2: Cost of Ingredients

I know this can be quite time consuming part.  If you are making cupcakes or small individual cakes it is important to know the price of one so make sure you calculate every batch.

So when you are shopping for ingredients, take note how much the eggs, flour, butter, margarine, etc costs.


pricing comic.jpg


3: Sundry Costs or Extra Costs

Similar to step 3 this is fairly simple to cost, and again. Sundry costs, are things like cakeboards, boxes, ribbons, dowels, etc 




4: Utility Costs

I know calculating Utility costs are a little trickier to calculate as you have to look at your bills or think of an estimate or figure to cover your utility.

But how many of us have time for this, again if this is too much trouble, just come up with an estimate amount.




5: Profit

The profit is money that you can invest back into your business. So that you can afford that shop you want, buy new cake equipment, create a website, buy flyers, generally market your business, and outsource your bookkeeping, admin, etc.

How much profit you add to your cake price is your choice. But aim for at least somewhere between 15% – 60% profit.





6: The Total Price

The final step is calculating steps 1 – 6

(Labour + Cost of Ingredients + Sundry Costs + Utility

Costs) x Profit = Total Cake Price


Practical Example,

Bose of Bose Cakes and Bakes has an order for a 10 inch fondant vanilla birthday cake with small piping detail and a few fondant roses on an iced cake board and packaged in a box.

Bose starts calculating:

Labour – N1,000 x 5 hours = N5000

 Ingredients Costs = N2000

Sundry Costs = N600

Utility Costs = N450

Profit x 30%

The Formula (N5000+ N2000+ N600+ N450) x 30% = N10,465

Therefore, the total price Bose will quote to the customer is N10,465.

So this is a simple method I recommend you use to price your cakes. Once you have mastered this Formula, you can change and adapt it from time to time.

Will love to hear from you. How do you currently price your cakes? How has it worked for you s far? Comment below please.


pricing masterclass 2.jpg


Registration for the   Pricing your Cakes Right to Build a Money Making Cake Business Masterclass is officially now OPEN.

Enrol for the ‘Pricing your Cakes Right to Build a Money Making Cake Business’ Masterclass here.

This Masterclass is an absolute must for those bakers that want to build a sustaining business, that is, you want your business to continue making money, and I mean profits year after year.

You need to know how to run a business, and I mean a profitable one.


You can be the best baker in the world, but this business is an overcrowded market and if you are not able to stand out. You will just be lost in the crowd and just continue to be a small business making just enough money.


I know you want more than that.


Don’t you want to be extraordinary?


You too can be like them and even surpass them. But you’ve got to know what to do. And I am doing this in this Masterclasss.


Don’t you want to have a regular inflow of profit coming in each month in your cake business?




About Me:

Hello, my name is Rotimicakelady and I am a cake business coach that teaches cake business owners how to grow and have a profitable cake business so that they have a constant stream of customers buying their delicious treats.

I have been running my own successful home based cake business for some years now. I have also been teaching bakers through my online courses who are struggling with low sales, with strategies on how to market, and price their cakes for profit.

In addition I am also run a Facebook Group where I coach, offer support and help bakers in their businesses.

I have helped over 50 bakers through my online course A comprehensive guide to starting your cake business in 30 days’ with much needed information on how to start a cake business in Nigeria. I also teach close to 4000 cake enthusiasts through my Facebook Group how to run a money making cake business.

I have been featured in ‘Naija Top Baker’ magazine, one of Nigeria’s foremost cake magazines and also been a Guest Speaker at the Bakery World Convention.

If you are struggling with getting customers for their cakes, I can help you solve this problem by showing you how to market, sell, price, plan, structure and brand your business so you are constantly selling to the right people who want your cakes.