by Sharon Wee

In a world of mass produced consumer goods and outsourcing, I think we have all come to expect things to be better, faster and cheaper.

Which is true when manufacturing gets done offshore in countries with a lower cost of living and people improve machines to work more efficiently. But in an industry like custom cake decorating, let’s not forget that everything is made with these –

Hands. Sure, there are certain elements that can be bought to place on cakes but it is not always possible to get the right size, shape and colour the client wants. Plus, good artists pride themselves in making all the elements themselves. I think it’s true for me to say that with most decorators, the cake and decorations are not made more than one week in advance and every element in the cake is made by hand and totally customisable – from the colours, to the size of the flowers and even how the stripes and dots are laid out.

It took just about 6 hours to pipe all the detailed print on this cake.

So based on the above it is to be expected that we don’t just have machines or stock on hand to take advantage of economies of scale. Each project is always different from start to finish and unlike a printer (for example) just because a client orders more does not mean it takes a decorator any less time to do the work.

Like everyone else, our work is based on an hourly rate. What a decorator decides to charge as their hourly rate is dependent on their skill level and is their choice. The number of decorators have certainly grown over the last couple of years which is fantastic for the consumer because it offers choice. Choice of different design styles and choice for different budgets. But what concerns me is the growing number of decorating businesses who are not doing the industry and most importantly themselves any justice.

A custom designed cake is not like a printer where you can just turn the machine on and leave it running overnight and when you come back the next day, the job is done.

The skyline on this cake was all hand cut and took over 4 hours to trace, cut and assemble on the cake.

If someone does not physically have their hands busy working on a cake, nothing gets done. Unlike a commercial bakery we are not working on volume and turning over 2,000 generic cupcakes a day (and these still get charged at $5.50 per cupcake). The cupcakes ordered from a custom decorator has been carefully thought out and designed just for each client. And when a client orders 24 or even 100, how is it right that the decorator is charging less then the amount a mass produced bakery would charge?

And when the only thing a decorator has going for their business is the price tag, I believe it won’t be very sustainable at all. When clients come back and tell me they are able to get a cake somewhere else significantly cheaper, it really baffles me. I’m not talking about 5- 10% cheaper, I’m talking about 40 – 50% cheaper. It’s great that the client got a deal, but what really baffles me is that the decorator will end up working for less than $5 an hour. 15 year olds working at McDonalds get more then that and they just operate the cash register – not liase with the clients, send sketches, bake and decorate.

So think about that and be fair to yourself, if I was averaging $5 an hour I’d much rather be spending the time with my family instead. I’ll admit that when I first started I was clueless about how to charge. I assumed that because the bakery is charging $5.50 for a cupcake, I should too. Well… we all learn from our mistakes and I hope this post inspires those decorators out there not to make the same mistakes and to be fair to themselves.

The many flowers on this cake took 3 days to create and dust.

At the end of the day, I understand that everyone has different costs to factor in (some have a shop and employees, others work from home, and some may just do it for a little spare income). But don’t sell yourself short – As everything is made by hand, no two cakes are the same even if it’s the same decorator replicating his/ her own design so comparing it just based on price is not right.

Some of Sharon's favourite tools

34 Comments on Custom Cakes and Economies of Scale

  1. Anonymous
    May 8, 2012 at 11:48 pm (5 years ago)

    Well said! I am going to print this and show it to my clients the next time they complain about pricing. It will save me time to explain exactly what you just said.

    Reply
  2. faithy
    May 9, 2012 at 1:29 am (5 years ago)

    I totally agree with you Sharon! I rather spend my time watching TV than charging less than i think it should!

    Reply
  3. Ladybird
    May 9, 2012 at 1:43 am (5 years ago)

    Great post, Sharon. Custom cakes are edible pieces of art and should be priced accordingly… those who don’t like it should perhaps go to Michael’s Patisserie instead! :p

    Reply
  4. LBB
    May 9, 2012 at 3:52 am (5 years ago)

    Very well said, thank you πŸ™‚

    Reply
  5. Wokingham Cakes
    May 9, 2012 at 8:18 am (5 years ago)

    Could not agree with you more, love your blog

    Reply
  6. Anonymous
    May 9, 2012 at 1:00 pm (5 years ago)

    You are absolutely amazing. I could browse through your cake photos all day!!!!

    Reply
  7. The Baked Equation
    May 9, 2012 at 1:59 pm (5 years ago)

    Well said. It’s amazing what people are coming to expect for so little. Thank you for this post, very encouraging.

    Reply
  8. cupcakeclaire
    May 9, 2012 at 2:12 pm (5 years ago)

    I totally agree… people always think our pricing is steep and let me tell you its not, as you say we hand make everything and it takes time to do so why should we work for nothing.

    Reply
  9. Lina
    May 9, 2012 at 3:52 pm (5 years ago)

    Spot on! I’d love to share this (thanks!)

    Reply
  10. LaDue & Crew
    May 9, 2012 at 5:01 pm (5 years ago)

    Thank you for posting this. I struggle with such comments daily. So very few people, in other professions, would do as much as we do for so little. I pride myself not only in the art that I create, but that my ingredients are simply, flour, sugar, butter, eggs. I don’t compromise. Oh, btw, Mayen sent me here πŸ˜‰

    Reply
  11. Anonymous
    May 9, 2012 at 8:34 pm (5 years ago)

    Thanks Sharon! Well said! I am only new to the cake decorating and custom cakes. Im probably under charging people for the custom cakes I make them. Could u pls give me some pointers on how to work it out? Check out my page http://www.Facebook.com/BrenDelights

    Reply
  12. Lena
    May 9, 2012 at 8:35 pm (5 years ago)

    well said, Sharon. thank you for describing them perfectly & thank you for sharing.

    Reply
  13. Cutiedoki
    May 9, 2012 at 9:01 pm (5 years ago)

    Very well said! Bravo!

    Reply
  14. Anonymous
    May 9, 2012 at 10:11 pm (5 years ago)

    How true this is!! Think i will be printing this also…. saves time explaining costs so thankyou for posting

    Reply
  15. Louisa
    May 10, 2012 at 4:50 am (5 years ago)

    Thank you so much for this post! It has taken me so long to become confident enough to start charging more for my cakes! It really makes it hard when people expect them to be the same price as a bakery or chain shop – or even cheaper! And I find that now I am charging more I am only getting customers who are happy to pay because they appreciate my work. I love seeing your posts because they inspire me to become better cake by cake! πŸ™‚

    Reply
  16. Lesley
    May 10, 2012 at 11:30 am (5 years ago)

    Well said and it applies to all handmade business’ People sell themselves short all the time and it’s hard to charge what you are worth and getting people to realise that you really are worth it.

    Your cakes are spectacular!

    Reply
  17. lyn
    May 10, 2012 at 2:55 pm (5 years ago)

    thanks for putting this out online. πŸ™‚

    Reply
  18. CondraCakes
    May 10, 2012 at 5:58 pm (5 years ago)

    Bravo! So may times you wish your could really go into this when a client says, “How much??”

    Reply
  19. Amber
    May 10, 2012 at 6:02 pm (5 years ago)

    Love this post!! everyone in need of a custom cake should read this before they complain about the prices!

    Reply
  20. Lynda
    May 11, 2012 at 9:36 pm (5 years ago)

    WELL SAID!!!!!!!!! Your heart, soul, love, time, energy and talents are reflected in the fine works of art you create. If I am not getting paid at least a decent amount, I’d rather relax…..or make something as a gift to brighten someone else’s week!!!!!

    Reply
  21. Mighty Morgan
    May 15, 2012 at 3:28 pm (5 years ago)

    Amen!!!! Well said…and said much nicer than the way I would say it πŸ™‚

    Reply
  22. My_Pride&Passion
    May 17, 2012 at 5:33 am (5 years ago)

    How true….very well said. With your blessing am going to re-post this.

    Reply
  23. Anonymous
    May 21, 2012 at 3:41 am (5 years ago)

    Excellent…well done.

    Reply
  24. Danielle
    May 21, 2012 at 4:00 am (5 years ago)

    Another fabulous post Sharon!
    There’s a business in Port Melbourne selling cupcakes for just $3.50! I had a rather rude customer lately say ‘Im getting them from (wont say the business name) instead – they’re waaay cheaper than you’
    I just wished her luck. They’re more than entitled and welcome to order from whomever they choose. BUt I sell quality, and they pay fairly, for that quality.

    Reply
  25. ArtsyCraftsy Me
    May 23, 2012 at 3:35 am (5 years ago)

    Thanks for this tip. My friend and I are a bit unsure about pricing our products accordingly. Some people don’t understand that these cakes require a lot of time and effort. I am still a beginner though, but I think it is just fair that my price should increase as my skill increases too.

    Reply
  26. SamCyn
    May 31, 2012 at 2:43 pm (5 years ago)

    You’re a true inspiration! Thanks for the post πŸ˜‰

    Reply
  27. Anonymous
    June 6, 2012 at 11:08 pm (5 years ago)

    perfect reason… tq so much!

    Reply
  28. Helenna Mannila
    February 9, 2013 at 7:09 pm (5 years ago)

    I think the problem lies with the fact that there are so many more cake decorators out there now. All competing for customers (in my local 2-mile area alone there are 5 of us). When a cake decorator is new and they want to build their customer base and portfolio, they often undercharge. However, this then means they are in a difficult position when they eventually have to raise their prices to stay in business.

    Reply
  29. All About Cake
    April 17, 2013 at 8:13 am (4 years ago)

    Thanks for the post Sharon – very well said

    Reply
  30. Anonymous
    April 18, 2013 at 3:53 am (4 years ago)

    Totally agreed.

    Reply
  31. fusion cakes
    July 27, 2013 at 2:49 pm (4 years ago)

    Very true..customers should totally understand the difference between hand crafted customized work and machine prints..nice post !!

    Reply

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