"When’s my next paycheck?" I asked myself.
Are You Paying Yourself in Your Cake Business?
If not, WHY NOT?!
You put in so much effort designing beautiful cakes, pouring your heart and soul into every detail. You deserve to pay yourself for all the hard work you're putting into your cake business. Running a successful cake business isn’t just about creating stunning cakes; it’s about making sure you’re financially secure and stable so that you can keep doing what you love! And it’s imperative because you need to continue to grow your business.
I remember when I first started my cake business, Aspen Charm Cakes & Pastries. I was constantly busy, booking orders, designing cakes, and making customers happy. But at the end of the month, I was shocked to find that I had no money left! It was frustrating because I needed my cake sales to support myself financially, and yet, somehow, I wasn’t seeing the profits.
Throughout the years of helping cake designers with their businesses, I see so many talented cake designers practically giving their cakes away. and I can immediately tell they are undercharging for their products and, most importantly, not paying themselves. The is a major problem because a successful cake business isn’t just about making cakes - it’s about making a living and financially supporting yourself. Even if you have a hobby cake business, you still need to make a profit in your business and pay yourself. This is a business after all.
If you’re in this situation, it’s time to shift your mindset and start prioritizing your financial well-being. Your business should support you, not drain you. You have permission to be 100% selfish (although, really, it’s about taking care of yourself).
After getting tired of being broke, I decided to take control. I got clear on how to price my cakes, how much to pay myself, and how to make my business profitable. Today, I want to share the exact strategies I used so you can finally start paying yourself from your cake business!
1. Determine How Long It Takes You to Design Your Cakes
One of the biggest mistakes cake designers make is not factoring in the time it takes to create their cakes. Pricing isn’t just about ingredients—it’s also about your labor. You are an artist, and your time is valuable.
Start by timing yourself while you work on cakes. Keep track of how long each step takes, from baking to decorating to packaging. Once you have a solid understanding of your work speed, assign an hourly rate to yourself. For example, if you want to earn $25 per hour and a cake takes you 6 hours to complete, you should charge at least $150 for labor alone, before factoring in ingredients and overhead costs.
I cover this exact strategy inside my FREE Cake Pricing Checklist, which you can grab below!
2. Pay Yourself Like an Employee
If you don’t have a separate business account, it’s time to get one! One of the best ways to make sure you’re paying yourself consistently is by treating yourself like an employee. This means setting a salary or percentage-based paycheck and transferring it into a separate personal account.
Here’s how to do it:
Decide how much you will pay yourself per cake (based on your pricing strategy).
After each order, move that amount from your business banking account into your personal banking account.
Keep the remaining funds in your business account to cover expenses, ingredients, and growth opportunities.
This method ensures that you’re always compensated for your hard work while also maintaining a sustainable business. The remaining money from the cake order should stay in your business banking account to keep your cake business running.
3. Stop Undercharging—You Deserve to Make a Profit
A lot of cake designers struggle with undercharging, often because they fear they’ll lose customers. But let’s be real—if you aren’t making enough money to sustain yourself, what’s the point of running a business? If you are not making a profit on each cake you are selling, you have a hobby
You are offering a premium service, and your work is valuable. You are not a Costco, Walmart, or big-name grocery store where people can order their cakes from. People are willing to pay for quality, and if you price yourself correctly, you will attract customers who respect and value your work.
If you’re struggling with pricing your cakes for profit, I’ve got something for you! I’ve created an awesome Cake Pricing Checklist that will help you break down your pricing structure and ensure you’re charging what your cakes are worth. Grab it for FREE below!
4. Set a Minimum Order Price
One of the best ways to ensure you’re always getting paid fairly is by establishing a minimum order price. This means you won’t take any orders below a certain amount.
For example, if you determine that your base price for a small custom cake should be $500, don’t accept orders below that. If someone wants a cake for $350, they are not your target customer. Stand firm in your pricing, and you will attract the right clients who respect your time and skill.
5. Build a Profitable Pricing Structure
Your cake pricing should cover:
Ingredients and materials
Overhead costs (rent, utilities, tools, marketing, etc.)
Your labor (hourly wage)
Profit margin (so your business can grow!)
If you’re only charging enough to cover ingredients and a small hourly wage, you won’t be able to grow your business. Add a profit margin to your pricing so you can invest in better tools, marketing costs, more supplies and possibly, a business expansion!
Additionally, if you have a pricing structure you can follow consistently, you can predict your income.
6. Offer Premium Services for Higher Profits
If you want to increase your income without taking on more orders, consider offering premium services such as:
Custom cake toppers
Luxury wedding cakes
Dessert table setups
Private cake decorating classes to hobby cake decorators in your area, children’s parties, etc.
These services allow you to increase your cake orders without reaching more customers. Find ways to upsell your current cake customers
7. Get Comfortable Talking About Your Prices
Many cake designers struggle with pricing conversations because they fear rejection. But confidence is key! When a potential customer asks about your pricing, say it with assurance. You don’t need to justify your prices—state them with confidence and let the quality of your work speak for itself.
For example: Customer: “How much is a cake like this?”
You: “This design would start at $850. All of my cakes are custom-made with high-quality ingredients and intricate designs to match your vision.”
Stand firm! The right customers will respect and pay your price.
8. Offer Different Payment Options
If you’re offering high-end cakes but some clients struggle with large payments upfront, consider offering payment plans. A 50% deposit upfront and the remaining balance due a week before the event is a great way to ensure you’re paid without overwhelming your customers. Additionally, you will expect when you will get paid in the future for the upcoming orders.
If you feel called to, incentivize your customers if they decide to pay for their entire cake order when they book with you. Who doesn’t love a large deposit? Whatever you do, it’s helpful to offer different payment options for your customers so they can properly pay you.
9. Track Your Finances and Adjust Accordingly
If you’re not tracking your income and expenses, it’s easy to overlook how much you’re actually making (or not making). Use an accounting tool like QuickBooks or a simple spreadsheet to monitor your revenue, expenses, and personal paycheck. Having a system in place to track all of your finances will give you extreme clarity on what’s coming in, inside your cake business. And, what’s going out. You will see how much you are paying yourself each month, you will see how much your supplies are really costing you, and you will see possibly adjustments you can make to save money in your cake business. Without the awareness of your finances, you will never know what is truly happening behind the scenes in your cake business.
10. Believe You Deserve to Get Paid
Many cake artists don’t feel like they “deserve” to charge appropriately for their cakes. I have seen this mindset with a lot of creatives and artists who believe they should not charge what their product is really worth and that mindset is extremely common inside creative industries. Society has taught us that creative entrepreneurs should not charge for their work. Society has also taught us that creative jobs are “worthless” “a waste of time” “a hobby” “not a real job.” But, who said that’s actually true?
If that sounds like you, it’s time to release yourself from that mindset and change the way you believe about yourself when it comes to charging properly for cakes.
Throughout my journey of working in corporate sales for many years to running multiple businesses to charging for cakes, my mindset always determined how much money I received. If I didn’t believe in the product I was selling and believe in myself, it was always reflected in my sales and ultimately, in my bank account.
When my mindset and confidence grew, my income grew. No matter if you are a talented cake designer or not, if you don’t believe you deserve to charge enough money to financially support yourself, you will never receive the money you want. That’s a fact.
Now, How much WILL you pay yourself in your Cake Business?
At the end of the day, your cake business should be as rewarding financially as it is creatively. Paying yourself isn’t just a luxury—it’s a necessity for long-term success.
By setting fair prices, tracking your finances, and confidently valuing your work, you can build a sustainable business that supports you and your passion. Remember, your talent and time are worth it! Take control of your pricing today and start seeing the financial rewards you deserve.
If you’re still unsure whether you’re charging enough for your cakes, you’re probably not! Guessing your way through pricing isn’t sustainable. You need a clear strategy to make sure you’re making a profit and paying yourself properly.
To help you with this, I’ve created a FREE Cake Pricing Checklist that walks you through everything you need to know about pricing your cakes for profit. Download it now and start making money in your cake business!
I’d love to hear from you! How do you pay yourself in your cake business? Do you use a different strategy? Let’s chat in the comments below!
