Cake Business


We bet you have never been in this scenario where you spend a lot of time agonizing over a quote. Then you finally name a price and press the send button whilst holding your breath and hoping it goes your way. This feeling is quite different and makes you wonder why is it that a different business in your own city that is also selling cakes manages to secure more orders and that too at a much higher price tag.

Well, the truth to this bitter reality is that pricing up your cakes is not as easy as it may sound. It is both an art and a science that requires a series of progressive steps to finally reach a point where one day, you can just raise your prices and your customers are okay with it. we shall address this issue by talking about The Right Way to Raise Your Prices. Raising your prices doesn’t only involve factors like having a brick-and-mortar storefront or having a large team (although it does play a small part). Rather it is about working on some of the key areas that we shall discuss below. So, my dear readers, buckle up as we talk about ways to enable your Cake Business to charge more for your baked creations.

Prices of different Cakes
Prices of different Cakes

Way #1

Focus on Improving Your Brand Identity

Brand association is the most important factor customers consider while buying something. There is a very good reason why people like us prefer to buy and eat from certain stores and restaurants and not all. Yes, quality matters a lot but we believe it has more to do with brand association.

To help you understand clearly, let us give an example. You will abruptly pay $10 for a cup of coffee being served in a fancy cup in a fancy restaurant. While refusing to pay even $6 for a coffee that is being sold on a street cart. Now why is the case? That is because the former has strategically branded itself as a premium product while the latter has no brand identity. So, you see the brand identity forced you to spend your hard-earned cash for a cup of coffee being served at a fancy restaurant. This is how you should start. Focus on improving your brand identity and then take it from there.

Way #2

Dig Out Your Ideal Customers

As soon as you realize there are a lot of customers out there who are willing to pay for your cakes and appreciate your work, it is time to lock those customers. This is the time to let your imagination run wild. Before all that, I am sure you had a plan in your mind about finding the right customers. Who would they be, are they rich enough to pay for your cakes, do they have kids who love to eat cakes, and more like that? The best strategy here is to find customers who have a lot of disposable income and love to host events and impress others.

Now you might think how is all this related to pricing? Well, the only way to relate this to pricing is to put yourself in the shoes of your ideal customer and then ask yourself how much you will pay for these cakes. It would be best if you thought about your competitors as well along with how much they will be paying for those willingly.

Way #3

Calculate Your Fixed Costs

A baker setting aside ingredients
A baker setting aside ingredients

This includes the prices of your fixed ingredients like flour, sugar, butter, and cream. Before you can make money, it is important to make sure you have a clear bill of the costs of all your fixed ingredients. Next comes all those things that are required for baking those beautiful cakes. For that, you need to think about these things.

  • Marketing.
  • Other ingredients.
  • Utilities.
  • Packaging.
  • Labor if you’re taking help.
  • And most of all your time. Check out the BakeBoost app to calculate your costs.

Way #4

Define Categories

The decision to price your cakes should depend on two factors. One is the cost of your raw materials and the other is your time. You need to figure out how much time it takes you to make a 1 pound cake. Start with that, then go to 2 pounds, 3 pounds, layered cake, two-tiered cake, and so on. You can follow a three-tier pricing way and then set a price accordingly.

  • Standard (offering cakes from 1 to 3 pounds in weight)
  • Bougie (offering layered cakes with frosting)
  • Exceptional. (designer cakes)
Image showing three-tier pricing way
Image showing three-tier pricing way

By defining categories of your cakes and their price range, your customers will choose what they see fit or be able to pay easily and this will also save you a lot of effort.

Way #5

Make Supply and Demand Your Friend

Those who want to run their business should make supply and demand their best friends. Any worker knows that there are only so many hours in a day and there’s only you who has to do all the work right? You have to work under the constraints of time and capacity and make money without burning yourself out. With the right pricing in place, you can make it happen. Just remember, when you reach a point where your demand is larger than your supply, then is time to raise your prices.

Way #6

Don’t make an announcement about raising your prices

Nobody makes an announcement that they are raising the prices of their products. Rather they just do it and don’t give customers the option to object. Also, you can raise the prices at any point in your business. Be it the first of the month, the mid, or the last day, just raise the prices and don’t make a big deal out of it. Even when you don’t have too many orders to handle, if the ingredient costs increase and you have improved your skills, it is best to pass the costs on to your customers. The price change doesn’t have to be a drastic one rather a small increase should be fine.


At first, it might seem daunting and you’d have a fear about how the customers will react and whether they will continue buying from you or not. You should raise your prices as it will save you time and help you earn more. By following The Right Way to Raise your Prices, you should be able to make good money out of your cake business. But remember to never compromise on the quality of your cakes and always offer your customers the best. That’s all from us for today see you next time with another amazing article till then take care and HAPPY BAKING.