How Much You Should Pay Yourself as a Beginner Baker
One of the hardest parts about how to price a cake is knowing how much to pay yourself as a home baker.
In this blog, I am going to give you a guide to figure out how much you should pay yourself when selling cakes. But to sum it all up: charge what’s fair for YOU and your home bakery business AND your customers.
If you can nail this, you will be pricing a cake like a pro in no time!
Start at Minimum Wage
As a beginner baker, it is easy to feel like you should not be paid for your cakes. This is a mental hurdle all home bakers have to get over, so be encouraged that you are not alone on this journey.
No matter how new you are to baking, if you are looking to start a home bakery business that is profitable, you HAVE to charge what is fair for your cakes.
And what is fair to you as a home bakery business owner, is charging at least minimum wage for your time.
Would you work any other job if you were paid less? No. So be a fair boss to yourself and charge at least minimum wage.
Consider your skill and experience
How much you pay yourself as a beginner bakers depends on a few factors and most home bakers pay themselves by the hour. Analyzing these factors and where you fall on the scale can help you land on a number that is appropriate for you and your business.
The first factor is your level of skill and experience.
Higher skill levels and higher experience can equal higher pay.
The more skilled you are at certain tasks can lend to you being able to pay yourself a higher amount.
Here are a few skills that can you can charge a bit more for:
Baking skills: Being able to bake up decadent mouth-watering cakes
Cake Decorating skills: Being able to decorate unique, clean, pristine, modern style cakes.
Marketing skills: The ability to market and promote your products well can play a huge factor in how much you are able to pay yourself.
Your level of experience can also drive up the amount you are able to pay yourself.
A baker who has been running their cake business from home for 10 years may be able to charge more than a baker who just started out a year ago.
But experience is not only about time. It also comes down to the quality of the experience you have gained.
For example you could have been a baker for 5 years at a storefront bakery but have 0 experience being a specialized vegan baker.
And then there is the baker who has 0 years of baking experience in a storefront bakery but two years experience of baking vegan baked goods for their family and friends.
They each have a level of experience, but they both can outweigh the other based on the experience needed.
Also keep in mind you can have a high skill level with a low amount of experience and a high amount of experience with a low level of skill.
I do not believe one can outweigh the other and it just comes down to what is more valued based on the situation.
The more skill and experience you possess, the more you can add to your hourly pay.
Consider What Makes You Special
It pays to be unique.
These are 3 examples that can increase how much you pay yourself.
Having a unique selling point like only making Taylor Swift inspired baked goods could increase your hourly pay.
Catering to special dietary needs like vegan, gluten-free, and allergy friendly baked goods may land you with a higher pay.
Being high in demand is another factor that adds to your value and ultimately a higher pay.
Now, you are worth more than just minimum wage.
Continue to work on how much you pay yourself to ensure it aligns with your needs, your business needs and meets the expectations of your customers.
If you cap out, diversify your income
It is possible to reach a cap on how much you can pay yourself when pricing a cake. This is why I highly advise to add additional revenue streams to your home bakery. Doing this can significantly increase your take home pay.
Cheat Sheet
If coming up with your own numbers still seems daunting ( I mean I get it, it’s a whole new mindset and skill) I have a cheat sheet for you!
I give you permission to look at your neighbors papers for an answer. Your neighbor being local bakeries in your area!
See how much the average baker or cake decorator is paid in your area and then apply that to you. You can then go up or down from there.
Here’s what you can search: “What is the hourly pay for a cake decorator in ‘insert your city’?”
For Lazy Bakers
And if even that seems too much (again, I get it), then take the “lazy” route and refer to our good friend AI for an answer.
Here’s a prompt you can enter to the AI of your choice and see what it gives you.
Copy, edit, and paste:
“You are an expert business manager that specializes in helping home bakers figure out their hourly pay.
I am a home baker in (your city and state) with x years experience. I would rate my skill level (1-10).
I specialize in (insert your specialties like gluten free products) and on average get x orders a week.
I cater to (insert ideal customer).
Based on this information, how much should I pay myself hourly in my home bakery?”
Conclusion
No one can tell you how much to pay yourself, but I hope these guidelines help you to come up with a number that is fair to you, your business, and your customers.
Remember to keep track of your data and analytics then make changes as necessary as you grow in your home bakery business.
