How Bakers Set The Cake Price

First, they calculate the time how much time consume to ready the cake,
After that estimate the cost of ingredients,
Next discover the labor cost,
Include the service cost ,
Add small cost,
Delivery charges may include..
At Last they calculate they set Cake Price.

It is good to calculate your all cost, but do not forget to value your time and skill. Commonly bakers make 8-9 inches cake but there is wide ranges of sizes, which can be used to make of different tiers or size.

The most gainful bakeries have a profit margin of 9%, at the time average profit is lower at 4%. Against this, the profit goes as high as 20% over a year.

In this large amount of bakeries never reached this profit, only few can reach at 12% as their gross profit.