18/11/2020
Pricing your cake!
Why is it so important?
Because you need to stop yourself from denial of your benefits and make your cake business profitable so you can have your Independence at nobody's cost! !
Many of the breakthrough you prayed for is tied to you costing it right in your business!
If you can not differentiate your business from business for profit and non profit business by knowing every number in cost, being able to differentiate between profit and your total costing .
You have a business running a business!!!!
And if you refused to take your costing serious, you are simply robbing your children from having quality education , yourself personal growth and your business expansion.
Everyone who started a business , had in mind to make profit and grow.
Knowing your numbers using the right calculation formula suitable for your business is as important than accepting a job .
A lot of times many cake business owners feel no matter how much they cost , the definitely will make a profit! That's a lie! Very deceitful!
You are simply going to become a car with flat tyres always that cannot move to anywhere!
Considering costing your cake for profitability , this 8 guide lines to follow. Never assume profit , take down your cost to know to know your net profit!
1✅ Know you total cost of baking ingredients, flour, flavours, eggs, parchment paper, raisins etc !
2✅ Total cost of decorating supplies, like toppers, printable stickers, food coloring, gold dust, flowers, Sweets, fondant, sprinkles, chocolate chips, butter icing, fresh fruit like strawberry etc.
3✅ Total Cost of packaging materials, cake board, wrapper, cake boxes, domes, ribbon, stickers etc.
4✅ Total Cost of Cleaning supplies, you are going to clean up , if you use water, soap and detergent and bleach worth #200 daily monthly #6000!
5✅Cost of ultilities , like gas, electricity, rent, fuel .there is no stable electricity in our country so cost electricity with your daily generator running cost.
For rent ,even if you bake from home. You need to pay rent to still have a place to run your business.
6✅ know your cost of Equipment and tools because you will need to replace it after years and maintain over time . Cost of your oven, cake mixer, eddible printing machine,moulds etc.
7✅ Total cost of time which is direct labour. Time you put in with others to achieve your customer's desired results.
Taking the orders from the customer, shopping for bakery ingredients, mixing, decorating, cleaning, delivering etc.
This is where you get money to pay yourself and your workers. The cost for your craft and expertise lies here!
8✅ Then here add your profits.
Remember to add Value Added taxes where necessary and obtain right from FIRS to collect it.
Coach Victoria.