How to price your cakes for a home bakery

Many talented bakers in Sri Lanka undercharge. Here is the formula we teach.

Price = ingredients + packaging + time + overheads + profit

• Ingredients: cost each recipe exactly — butter, eggs, flour and chocolate prices change monthly.
• Packaging: boards, boxes, ribbons and toppers easily add Rs. 600–1,200 per cake.
• Your time: decide an hourly rate (for example Rs. 750/hour) and count baking, decorating, shopping and messaging time.
• Overheads: gas or electricity, equipment wear and delivery.
• Profit: add 20–30% on top. This is what grows your business.

Example: 1 kg buttercream birthday cake

| Item | Cost | |---|---| | Ingredients | Rs. 2,400 | | Packaging | Rs. 700 | | Time (3 hours) | Rs. 2,250 | | Overheads | Rs. 400 | | Subtotal | Rs. 5,750 | | Profit (25%) | Rs. 1,440 | | Price | Rs. 7,200 |

Our business module also covers packaging, photography and Instagram promotion.