Week 3 - Pricing Cakes - Cake Business Tutorial

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Week 3 – Pricing
with David Brice
HD Lessons: 2
Now Playing
01:41:39

1. Week 3 - Pricing

Business Boot Camp Week 3 of 8

Getting your pricing correct is often the difference between success and failure.

Follow David and create a systemtic approach to your pricing and also ensure that you are pricing to make a profit.

This lesson will challenge a number of issues so be prepared to let go of any systems or pricing approaches that are no longer fit for purpose as you plan to achieve your key business objective and goals.

Extra Learning:

Martin Robertson – Chartered Accountant and Business Coach – Knowing Your Numbers – PART 1 & Part 2

Nicholas Lodge – Pricing Sugar Flowers – See Lesson 2 below

Homework 

Complete the following spreadsheets (links below)

Course Notes – Word – Pdf

Downloads

  1. Set up Costs – EXCEL  Pdf    Open Doc Format 
  2. Running Costs – EXCEL  Pdf    Open Doc Format
  3. Accounts Summary – EXCEL  Pdf    Open Doc Format
  4. Capacity Planner – EXCEL  Pdf    Open Doc Format
  5. Wedding Cake Price Guide – EXCEL  Pdf    Open Doc Format
  6. Novelty Cake Price Guide – EXCEL  Pdf    Open Doc Format
  7. CashFlow Forecasting – EXCEL  Pdf    Open Doc Format

Wedding Price Guide explanation:

The price is made up from the size of tier (4″,6″,8″ etc) and the time taken to complete that tier, which is the Band rating. The Band rating will be determind by how much time or extra cost you decide that tier will take. In our example Band C are the quickest and easiet cakes to make, then B, then A being the most time consuming. You need to identify your prices based on your business and the mumbers discussed in the earlier spreadsheets. Note that the price was the same regardless of the type of cake or filling chosen with our wedding cakes.

Novelty Price Guide explanation:

The row showing 1.5, 2 etc relates to the number of hours estimated to decorate the cake. The designer should add the price against the size of cake from the columns above with the price given below the estimated time to get the total price for the cake. We had a separate fruit cake and sponge cake guide for Novelty cakes du eto smaller profit margins.

Pricing Summary

Know your:

  • Running costs
  • How many hours are you willing to work
  • Gross profit per hour (cost of cake minus ingredients, divided by hours taken)

How to make more Profit:

  • Reduce costs
  • Improve speed
  • Create faster designs
  • Increase your prices
Now Playing
30:46

2. Pricing Sugar Flowers with Nicholas Lodge

Join Chef Nicholas Lodge as he gives some great examples of how to price flowers, but also some amazing business hints and tips.

Flower Pricing DOWNLOAD NOTES 

David Brice

David Brice

David Brice is the lead business tutor with CakeFlix, which has won Cake Masters awards Best Learning Experience in 2014, 2016, 2017, 2018 & 2019.
David´s career started in the Army then he moved over to become a civil servant with the MOD then latterly the Scottish Government.  His job prior to leaving was as a speech writer for the Transport Minister, which came with huge kudos, good salary and great pension. However, he wasn´t fulfilled, he knew that there was more to life than the role that he found himself in.
David knew Paul for a couple of years before Paul started his Cake Business in 2002, helping with some of the paperwork and admin required to set up a business. As Paul´s success grew it was clear that his business needed more support so in 2005 David left the security of his job and joined Paul in the cake business. That was a leap of faith as David had not, and still hasn´t, decorated a cake. However, he could see the potential and they grew the business to seven outlets with 35 staff. It wasn´t all plain sailing and its the highs and lows of that journey along with a lot of studying on business best practice that he shares in his Cake Business tutorials.
Paul and David sold the cake business to concentrate on teaching and are passionate about sharing their knowledge and experiences to help others.