I have been struggling with our cake pricing. So let me give an example and ask my questions.
My ingrediant cost for our 1/2 sheet cake (cake made with butter and a real Italian buttercream) is $18.06.
This number is just the ingrediant cost, there is no labor included or overhead.
Question is there a percentage that I should maintain from what I charge to what the ingrediants cost is.
For example if I price the cake at 50 dollars am I high enough.
Question 2: If I cost it by figuring out all my costs labor, overhead, paper ingredianets etc and then apply my expected profit percentage top of all of my costs, what is a reasonable percentage in the baking industry.
I have a bakery in an area that appreciates great food, but I really have to watch what I charge. I have no compeditors near me that makes baked goods using the ingrediants that we do. We make our cakes from good local products, no shortening or margerine all butter and no preservatives. After doing my yearly books, I am suspecting that we are not charging enough for some of our products as the ingrediant costs seem a little high.
Question 3 what is a good ratio of cost of ingrediants vs gross sales at the register.
I really would appreciate some advice here from bakers and pastry chefs with their own buisness or have run them. This is causing me to loose sleep and I really could use some advice here.
Thank you very much