What You’re Really Making

Pricing questions, answered

How do I know if I'm undercharging for my baked goods?

Add up your ingredient cost, packaging, overhead, and the time you spend per batch. Divide your profit by your hours. If the number is below minimum wage, you're paying yourself less than a fast food job. Most home bakers are shocked by this number.

What hourly rate should I target as a home baker?

At minimum, $15/hr. Many experienced home bakers target $20 to $35/hr. Remember: you're skilled labor. You spent time learning recipes, building a following, and managing orders. Price like it.

Should I include overhead in my pricing?

Yes. Packaging, electricity, gas for your oven, labels, and waste all add up. A common starting point is $50 to $100/month for a small home bakery. Skipping overhead means every sale costs you more than you think.

How do I raise my prices without losing customers?

Most home bakers lose fewer customers than they expect. Start by raising prices on new orders, not existing ones. Show the value: fresh, local, made-to-order. The customers who leave over a dollar were never your best customers.

What costs do home bakers forget to include?

The big ones: your time (prep, baking, cooling, decorating, cleaning, packaging, delivery), packaging materials, gas and electricity, food waste from failed batches, and the time you spend on messages and social media.