Cake Making Business: Costs, Pricing, and Your First Sale

On this page

1. What does it cost to run a cake making business?
2. How do you price a cake so you get paid?
3. What mistakes cost cake makers money?
4. How do you take orders and get paid?
5. What should you do before your first paid order?
6. What numbers should you track every week?

You already bake well. The hard part is turning that into a cake making business that pays you. This guide walks through the numbers, the pricing, and the first steps to get paid.

What does it cost to run a cake making business?

Every cake has three costs: ingredients, your labor, and overhead. Ingredients are the flour, eggs, butter, and flavoring. Labor is the hours you spend mixing, baking, decorating, and cleaning. Overhead is the monthly cost of tools and selling.

Brevl costs $20 a month flat and takes 0% commission. You take card payments through your own Stripe or Square account, plus Venmo, Cash App, Zelle, and cash. That keeps your overhead low and predictable.

Packaging is a cost. Boxes, cake boards, and labels add up. Add them to your ingredient cost before you set a price. Delivery is also a cost. If you drive to drop off a cake, add the miles and the time to your price.

Track every cost for one month. Keep receipts for ingredients, packaging, and any fees. At the end of the month, add them up and divide by the number of cakes you sold. That is your true cost per cake.

How do you price a cake so you get paid?

Price is not cost plus a guess. Start with the full cost of one cake, then add your margin. The margin is what pays you beyond your hourly labor.

1. 1

   Cost one recipe

   Add up every ingredient in the recipe. Divide by the number of cakes or slices it makes.

2. 2

   Add your labor

   Decide an hourly rate for yourself. Multiply by the hours one cake takes, including cleanup.

3. 3

   Add overhead per cake

   Take your monthly overhead, like the $20 Brevl fee, and divide by the cakes you sell in a month.

4. 4

   Set your price

   Add ingredient cost, labor, and overhead. Then add a margin, usually a percentage of the total cost.

5. 5

   Check the market

   Look at what local bakeries and home bakers charge for a similar cake. Adjust your size or design, not your pay.

A price that ends in 0 or 5 is easy to pay. But do not round down so far that you lose your margin. Round up to the next dollar if you are unsure.

What mistakes cost cake makers money?

The biggest money leaks are not charging for your time, forgetting overhead, and guessing at ingredient costs. Each one shrinks your margin until you are busy but broke.

Another mistake is not raising prices when costs go up. Butter and eggs change price. If you never update your price, your margin shrinks. Check your ingredient costs every month.

Another mistake is taking orders without a deposit. A deposit covers your ingredients if the order falls through. Brevl lets you take card payments through your own Stripe or Square account, so you can collect a deposit when the order is placed.

How do you take orders and get paid?

You need a way for customers to order and pay that does not eat your margin. A shop that is yours, with your photos and your web address, makes it easy for repeat buyers to find you.

Brevl gives you a shop you customize. It works on a computer and on a phone. You can take orders, track ingredients, and plan your week. We set it up with you, and we move your old shop over: products, photos, reviews, and dates.

You can try Brevl free for 14 days. That is enough time to set up your shop, add a few cakes, and take a test order. If it does not fit, you can walk away.

A deposit of 50% is common. It covers your ingredients and shows the customer is serious. Brevl lets you take card payments through your own Stripe or Square account, so you can collect the deposit online.

What should you do before your first paid order?

Before you take money, check your state’s cottage food rules. They tell you what you can sell, where you can sell it, and what label you need. The cake business registration guide walks through the steps.

Then set up a simple way to track orders and costs. A notebook works at first. When you are ready to grow, a tool like Brevl keeps your recipes, inventory, and orders in one place.

What numbers should you track every week?

Track four numbers every week: orders, average price, ingredient cost, and hours worked. Orders tell you demand. Average price tells you what people pay. Ingredient cost tells you if your recipes are getting more expensive. Hours worked tells you if you are paying yourself.

When you are ready to stop using a notebook, Brevl keeps your recipes with real costing, ingredient inventory, and a weekly planner. That means you can see your numbers without adding them up by hand.

For example, write down three numbers for one cake. Ingredients: your total ingredient cost for the recipe. Labor: your hourly rate times the hours you spend. Overhead: your monthly Brevl cost of $20 divided by the cakes you sell in a month. Add the three. Subtract that total from your price. The result is your margin. If the margin is too small, raise the price or lower the cost.

For more craft guides, see the craft hub. It collects the pages on costing, pricing, and selling from home.

• Cake Business Guide: Cost, Price, and Your First Paid Order
• Cake Business Is Profitable: Cost, Margin, and Pay
• Cake Business Management: 5 Numbers That Keep You Paid

Common questions

How do I start a cake making business from home?

Start with one recipe you can make well. Cost it fully, including ingredients, labor, and overhead. Check your state's cottage food rules. Then set a price that leaves a margin. Take one paid order and track every cost and minute.

How much should I charge for a cake?

Charge your full cost plus a margin. Full cost is ingredients, your labor at an hourly rate, and overhead per cake. Overhead includes your monthly tools, like the $20 Brevl fee. Add a margin on top. Check local prices for a similar cake before you finalize.

Do I need a website to sell cakes?

You do not need a website to start. A phone and a notebook can work for your first orders. But a shop that is yours, with your photos and your web address, makes it easier for repeat buyers to find you. Brevl gives you that shop.

What is the biggest mistake in a cake making business?

The biggest mistake is not paying yourself for your time. If you only charge for ingredients, you can sell every cake and still lose money. Add your labor as a cost, then add a margin on top of the full cost.

General information, not legal or tax advice.