How to STOP Undercharging and Raise Your Baking Prices

How to STOP Undercharging and Raise Your Baking Prices

How to STOP Undercharging and Raise Your Baking Prices

Have you been thinking about raising the prices of your delicious home baked goods?

Maybe you’re here because you’ve been struggling to make a profit in your home baking business.

You’re working SUPER hard and you’re baking practically every day of the week.

You say no to 9/10 social gatherings because you always have baking that needs to get done.

You’re up early every morning and working late every other night.

While your family is barbequing outside, you’re in the kitchen baking orders for tomorrow.

Then you look at your financials at the end of the month and see that you’re STILL earning small change. Despite all that effort and sacrifice! 😒 How is this possible?! 

My friend, I know exactly how you feel because I’ve been there.

If your Home Bakery has enough clients and orders to keep you this busy in your baking, that’s awesome! Congrats to you!

But for a business to succeed and be sustainable, you’re going to need more than just heaps of orders.

You’re going to need each order to be as profitable as it can be.


“Why Should I Raise My Prices When Customers Prefer Cheap Products?”

Be very careful how you think about pricing and customers. If it were true that all clients prefer cheap products, then companies with super expensive products (like Ferrari, Prada and Rolex) wouldn’t exist.

Truth is that all customers are NOT the same!

YOU are not your ideal client. Just because YOU wouldn’t spend a certain amount of money on baked goods, doesn’t mean all other people won’t.

All people don’t want the same things. All of them don’t have the same spending priorities as you.

People spend money on fascinating things!

My in-laws, for example, never ever eat out at a restaurant. BUT they’ve spent thousands on collecting drawers upon drawers full of DVD’s. Home entertainment is a priority for them, so that’s where they spend their money.

My husband and I were quite poor when we just got married. We slept on single mattresses on the floor during the first year of our marriage. BUT, we ate out at least once every 2 weeks – because eating delicious food is a priority for us!

All clients don’t prefer cheap products with cheap quality. Don’t fall for the assumption your mind is making.

There are thousands upon thousands of people out there who will gladly pay good money for superior products like yours.

RELATED: 6 Steps to Pricing Your Home Baking With Confidence

Have you been struggling to turn a profit in your home baking business? You’re working super hard, saying no to most social events and you’re baking practically every day of the week! Then you look at your financials at the end of the month and see that your home bakery is STILL earning small change! My friend, I know exactly how you feel because I’ve been there. You need to RAISE your home bakery's prices! Here's how to do it... #homebaking #baking #cakepricing #homebakery #bakingbusiness


“Isn’t it Greedy to Charge Higher Prices?”

In short, not at all. Just like plants need water to survive, businesses need money to survive.

If you want to bake as a hobby, that’s fine. But if you want to turn your baking into a business that actually gets you a salary every month, you need to charge properly.

Charging your clients decent prices is not about being “obsessed with money” or “greedy” or “milking clients” for crazy profits.

It’s just a basic fact of business. Businesses need to make money or else they die. It’s just that simple.


The Hamster Wheel that Doesn’t Get Your Home Bakery More Profit

Deep down we KNOW our baking business needs to make more money so we try to fix this. But we try to fix it the wrong way!

1. We so easily assume that our businesses aren’t growing because we “need more Instagram followers” for example. But it’s 100% possible to have a huge Instagram following and still not make enough money to even bake part-time!

In fact I know bakers with a following of like twenty thousand people but they are not making enough money from their baking business to do it full-time. “Popularity doesn’t pay the bills.” Jasmine Star

2. Another super popular misconception most home bakers have is that they just need MORE clients and MORE orders for their business to do well. And they think the way to achieve that is MORE advertising – resonate with this one?

But it’s a flawed and dangerous approach.

Even if you advertise and market your business and bring in more clients, your business will STILL struggle.

It doesn’t help if you have a heap of clients but you still undercharge ALL of them. That’s not a recipe for success, that’s just a recipe for burn-out.

The answer to your problems of burn-out and lack of profit isn’t getting more and more clients.

Here’s a metaphor to explain my point better…

Let’s say your success is this water tank on the right. When it’s full you’ve reached your profit goals. But YOU have to fill your success tank with water from this river on the left – which represents your potential clients & profit. The only tool you can use is a water bucket to carry profit from the river to the tank.

How to raise your home bakery's prices

When you’re undercharging your clients it’s like your water bucket has a hole in the bottom. So no matter how hard you try, loads and loads of water won’t make it to your profit tank.

And now you’ve got 2 options:

1. Run faster and faster from the river to the tank and scoop larger and larger amounts of water that you can barely carry.

OR option 2 which is to…

2. Plug the hole in your bucket!

Which option do you think is more logical? Which option is more sustainable? 

It’s to plug the hole in your bucket, right?

In the exact same way the answer to your combination of burn-out and low profit won’t be solved by working faster and scooping up more clients.

The solution to home bakery burn-out lies in charging enough for the clients that you DO have right now so that all the water you carry and all the work you do goes into your success tank and contributes to your profit & success.

Does this make sense?

How much income is your home bakery missing out on every month because you keep undercharging for your baking? It shouldn't be this way! You deserve to be paid well for your hard work! In this post you'll learn how to stop feeling guilty for charging customers full price. Then you'll get step-by-step tips for raising your prices so you can start earning more income from your home baking :) #homebakery #homebakerypricing #cakebusiness #homebakingbusiness


How to Charge Higher Prices: Step-by-Step

1. Spell out for yourself what makes you valuable as a human being.

It’s not your work (because babies are valuable even though they do zero work). It’s not people’s praise (because people are biased, flawed and lie regularly). It took me a long time to see it, but eventually God helped me realize that I’m valuable because HE loves me. Not because a client loves me.

Really take time to think about what it is that makes you valuable as a person. Once you establish this, you’ll feel way more liberty to charge the prices you’re supposed to.

2. Download the Pricing Calculator that calculates your recommended selling prices FOR you!

No need to do complicated math!

🌟 You can download the Pricing Calculator in the Free Resource Library >> click here to join the Library. If you’ve already joined the library, then open the last email I sent you and click the blue link to the Library right at the bottom of my email.

3. Read the instructions for how to use the Pricing Calculator. Then calculate the selling prices of your baked goods.

4. Update your prices! Simple as that! If the price increase is quite drastic, then you can increase your prices halfway now and the rest of the way 3 months from now. You never need to apologize or explain to customers when you raise your home bakery’s prices. Does any store you know do this? Probably not. Just raise your prices and move on with your life.

5. How OFTEN to raise your prices: You should re-calculate and consequently raise your prices at least once a year. Ingredient costs are constantly going up, so you need to keep raising your prices every year.


“What if I Feel the Recommended Selling Price is too High?”

The most important thing you need to know about home bakery pricing is that it’s not about your feelings! I know this sounds harsh, but let me explain.

Pricing is a mathematical, LOGICAL thing. If you build a business according to your feelings, you won’t make sound business decisions.

Logically, you need to charge the prices the Pricing Calculator recommends if you have any hope of CARRYING ON with your Home Bakery. I know it’s hard! But I’ve come to understand that a successful business is built on logical decisions, not emotional ones.

If you keep undercharging and giving discounts because of your feelings, you’ll burn out OR your business will.


>> Be honest: are you pretty much working all the time? Weekends? After hours?

>> Does you take in every order you get because you feel you NEED this money for your business to survive?

>> Are you undercharging because you’re so scared that if you raise your prices, your customers will get upset and leave?

>> Are you close to burning out? Are your relationships suffering because you’re maxed out and can’t keep up with everything?

All these are symptoms of not pricing correctly.

If you raised your hand to any of these symptoms, then the “Confident Pricing & Profit Kit” is the perfect fit for you! The Confident Pricing & Profit Kit is an online course for home bakers that takes the stress out of Home Bakery Pricing & Bookkeeping with done-for-you templates and systems.

👉 Click here to check out the Confident Pricing & Profit Kit

Frustrated that you're baking 24/7 and still not earning enough money in your home bakery? I know exactly how you feel! The solution is to raise your prices. I know you might feel too guilty or awkward to charge higher prices for your baking, so let me show you how to raise your prices step-by-step! Click through to learn how... #baking #homebaking #cakepricing #homebakery #bakingbusiness


What if a Client Complains About Your Prices?

If a client complains about your prices, then they are simply NOT your ideal client.

Truth is there will absolutely be clients who aren’t a good fit for your home bakery – and that’s ok! You don’t need everyone to like your business in order to be successful!

Handmade, homemade baked goods are luxury items and extremely valuable. Clients get something that’s made FRESH, just for them with top quality ingredients. It’s not a week old and with cheap ingredients like in the grocery store! 

Even though there’s a huge market for this HIGH QUALITY type of home baking, it’s not for everyone – especially not “budget clients”. I’m sure you’ve encountered budget clients before!

If someone complains about your prices, you can politely refer them to the cheap, semi-stale stuff you find in the grocery store’s baking section.

How you determine your prices is none of your client’s business.

Do these clients do the same thing when they go to restaurants?… “Excuse me KFC cashier, but that cook of yours back there has a trainee badge and is new to the cooking scene. So, I’m only going to pay half for my order.”

No! It’s not even an option at ANY restaurant.

YOUR PRICES ARE YOUR PRICES. It’s not your job to “convince” clients that your prices are fair. Don’t take the bait! If they doubt your prices or complain, politely refer them to the grocery store’s baking section.

You can use this script:

“Hi NAME 🙂 I would have loved to bake for you, but unfortunately my prices are my prices. Every item is handmade with high quality ingredients and care. These things are very important in my business and cost a lot to keep going. If you’d like something more affordable, I highly recommend [local commercial bakery/grocery store]. I hope your event is wonderful! Best regards.”


A Bonus Tip on “Budget-Clients”

On this note, be careful not to market your baking as “for everyone and every occasion” because then you WILL attract budget clients who complain and ask for discounts!

Instead, focus on the fact that your bakes are a full on luxury, HIGH QUALITY, gourmet experience.

RELATED: 4 Essential Tips for Marketing Your Home Bakery Business


Closing Thoughts on Raising Your Home Bakery Prices

I know first-hand how scary it is to raise your prices! I get it.

But your business NEEDS you to raise your prices. Because if you don’t, it won’t survive.

Clients that aren’t willing to pay more for your high-quality, homemade baked goods, probably weren’t your ideal clients in the first place!

But take heart because there are PLENTY more clients for you out there!

If you’re feeling overwhelmed or anxious about your pricing & business finances, why don’t you get my financial templates so you can easily do your finances in just 10 minutes a week?

I’ve put together an online course with everything you need to confidently price your bakes and handle your finances. 

👉 Click here to check out the Confident Pricing & Profit Kit

I trust that this post has FINALLY given you everything you needed to settle the issues of raising your prices in your home bakery!

If you have any further questions, share them with me in the comments below and I’ll get back to you as soon as I can! 😉

Chat soon


Got a question? Something to add? Let’s chat in the comments section down below! (I respond to every single comment)

6 Steps to Pricing your Home Baking with Confidence

6 Steps to Pricing your Home Baking with Confidence

6 Steps to Pricing your Home Baking with Confidence

Pricing your home baking can be (and should be) simple.

But how do you know if you’re doing it right?
How do you know if you’re undercharging or overcharging?
What if you charge too much and no one orders?
What if you charge too little and do yourself in? 

I understand completely how you feel right now…. When I started my home bakery, I also struggled with pricing and customers took advantage of that all the time! I don’t want that for you.

So, this post is here to make pricing quick & simple for you.

When you price the RIGHT way, you’ll earn more income from your baking and you’ll be able to make home baking your career.

This post will clear up home bakery pricing for you once and for all!

And the biggest help I can offer you is my Baked Goods Pricing Calculator that does all the complicated math FOR you.

Yup, I’m serious.

This is no joke – you can get my Baked Goods Pricing Calculator for FREE. You can download it in the Home Bakery Resource Library >> Join the Library HERE.

How do you price home baking? What if you charge too little for your home baking and don't make enough income? What if your home baking's prices are too high and no customers want to buy from you? In this post you'll learn how to do your baked goods pricing the RIGHT way, so you can make more profit and even turn home baking into your career! #homebakery #bakerypricing #bakingbusiness #cakebusiness

But before we dive into the practical side of pricing, let’s quickly talk about the emotional side of pricing.

Because if you don’t understand the emotional side of home bakery pricing, you’ll always feel too guilty or awkward to charge your customers full price.

Let’s lay the foundation right so that you NEVER have to struggle or feel awkward when you’re pricing your baked goods, sound good??


1. Understand WHY Home Bakers Feel Awkward & Guilty with Pricing

If you consider the typical prices of baked goods, they’re not exactly “expensive” compared to all the other things people buy for enjoyment…

Every day people spend thousands of dollars around the world on restaurant meals, watching movies, weekend getaways, etc.!

People easily and willingly PAY GOOD MONEY for products that make their lives better. Why should it be any different with homemade products – like home baking?

Home Baking is SUPER labour intensive, yet we feel too awkward & guilty to charge what our bakes are TRULY WORTH.

I am convinced that the reason why cake pricing remains an issue, is because we are confronted with adding a VALUE TAB to what we do… AND a value tab on what we feel WE are worth.

A lack of confidence is the REAL reason why we overwork ourselves, STRUGGLE WITH PRICING, end up bowing to every whim of demanding clients and get stuck baking things we don’t even enjoy making for cheaper prices!

There’s this constant analysis going on in our minds “If only I had 1000 likes on my Facebook page, THEN I would know that I’m good enough to charge full price for my bakes!

And with Reality TV Shows about baking it’s the EXACT same story. All home bakers have these thoughts crossing their minds on a regular basis:

“If I win this competition, I will finally know that I’m good enough.” “If I win this competition, it will prove to my father that I’m talented enough to make a living from dessert making.”

Here’s the secret: “If you are not enough WITHOUT it, you will never be enough WITH it.


The hard truth is that the “stamp of approval” you feel you need from customers to classify you as a LEGIT Baker, won’t be enough to convince you that you’re valuable.

What YOU believe about your value is what matters here.

So, who do you truly BELIEVE you are?
And is that person valuable?
What makes that person valuable?

The price tabs you put on your work will always reflect how valuable you believe you are.

I had to get to a point where I stopped looking to my clients for validation that I’m okay.

I had to fully embrace that MY value comes from the Lord Jesus Christ (for you it can be your own spiritual beliefs).

RELATED: How to Overcome Self-Doubt in Your Home Bakery

In the past I undercharged for my baking because I felt a need to OVER-please my customers so that the odds of them liking me are higher… I was deceived in thinking that the more customers liked & praised me, the more valuable I’d feel.

But if you’re not enough without that praise of people, you’ll never be enough with it.

“The reason we ‘people please’ is not because we care about other people. It’s because we want to control what other people think of us.” – Courtney Chaal

When YOU stop looking to people for your validation and settle it in your heart that YOU ARE VALUABLE, it becomes so much easier to acknowledge that your baked goods are valuable too!

Now let’s Cover the Home Baking Pricing ESSENTIALS…


2. The VALUE of Home Baked Goods

You may have believed until now that Home Baking is in some way “inferior” to the baking of storefront bakeries.

But you actually have it backwards!

It’s important to realize that you’re offering a VERY UNIQUE and VALUABLE service here. You are baking SPECIALLY for ONE client with all the LOVE and QUALITY they would get from their OWN MOTHER’S baking.

They’ll also get their baked goods FRESH – not 1 week old as in the grocery store and large, mainstream bakeries.

So, on every level, small batch home baking is of HIGHER VALUE than mass-produced commercial baking.

You offer them the sentimental, high quality benefits of homemade, HAND MADE baked goods without them needing to spend ANY time or effort on it.

Home Baking has an incredibly high QUALITY, NOVELTY and CONVENIENCE value. That’s worth A LOT my friend.


3. Cheap Prices Attract Cheap Clients

If you’ve been charging too little for your baked goods, you’ve probably run into some pretty darn demanding, unrealistic, bartering sort of clients. Am I right?

Chances are, that’s what drove you to start looking for cake pricing answers! The type of clients you have are just becoming unbearable and you’re constantly second guessing yourself as a baker and business owner.

So here’s the deal. Cheap prices will attract budget clients who enjoy nothing more than saving money wherever they can.

They unfortunately are the type of clients who take advantage of you. They’ll get you baking things you hate, on short notice for less money.

The way you get ideal, committed clients with better character is by CHARGING MORE. This separates the cheapskates from the true cake appreciators.


Pricing - ugh! How do you know if you're charging too much or too little? What if you charger too much and no one orders? Or what if you charge too little and don't make enough profit to survive? In this post you'll get everything you need to settle your home baking pricing issues - forever! Get a free pricing calculator (pricing chart) download to do all the fancy math for you in your Home Bakery Business! Click through to get started :D #homebakery #cakepricing #cakebusiness #bakingbusiness


4. Cheap prices “for the love”?

When I started my Home Bakery I kept all my bakes SUPER cheap because I wanted them to be affordable for everyone.

I was buying the best ingredients, investing hours of my time and barely turning ANY profit.

There are so many bakers on Instagram that say: “You should do it for love, not for money.”

But this is FLAWED LOGIC. Let me explain why.

Let’s look at doctors for example. They fill an amazing role in society and bless so many people with their gifts and talents. Keeping people alive is their heart’s desire.

Medicine is a SUPER demanding career and there’s no doubt that doctors choose to STAY in this career for love and not money… The convenience & excitement of money wears off pretty fast when you need to work 36 hour shifts – repeatedly.

Yet we GLADLY pay them generous sums of money SO THAT THEY CAN KEEP ON HELPING US.

Charging DECENT prices for your bakes (charging what they are worth) will enable you TO KEEP ON BAKING DELICIOUS BAKES FOR PEOPLE.

If they don’t pay you WELL, you’ll need to end your Home Bakery and get a desk job somewhere… It’s pretty hard to “love people with your baking” then, isn’t it??


On this point we also need to talk about pricing your bakes for close friends & family.

Baking for family and friends is a tough one; because we love them and feel guilty to accept and ask for payment.

But, here’s another perspective: Your friends and family love you and want you to succeed – that is why they are ordering from you.

I decided a while ago to have a standard discount for all my close friends and family. The discount is 10% off my direct client prices. To offer them a discount will already seem very generous and courteous to them.

If your friend sells you a car (for example) you will be ELATED if they give you a 10% discount, right?

Set up a fixed discount rule for friends & family that you are comfortable with (I recommend a 10% discount MAX), and stick to it no matter what.

Making a rule like this for yourself and your family/friends eliminates the need to make an awkward decision every time a family member or friend orders something.


5. Transition From a Freelancer to a BOSS

I recently watched a video by online entrepreneur Courtney Chaal on this topic. All home bakers start out as freelancers meaning that someone asks for a certain bake for a certain day and we proceed to make it for them.

They then start manipulating you by saying their budget is so tight this month because of this and that, so you end up giving them a discount…

The client calls the shots. They determine what we make, when we make it and they influence what they pay for it. This means that we base our business strategy and pricing by just REACTING to our customers.

You might still be running your Home Bakery this way and be thinking “well, what other way is there??”

There is another way my friend and that is to become a BOSS and start running your business like a boss.

A boss decides what services and products they do and do not offer. They decide what the prices are. They call the shots and determine the course of their business.

A freelancer is just reacting to clients and their business will end up going wherever their clients end up taking them – which could be in circles or downward, and not forward.

There is a COLOSSAL difference between a freelancer and a boss!!

RELATED: How to Create a Home Bakery Business Plan (Includes free workbook!)

Feel too guilty or awkward to charge full price for your home baking? Pricing has always been an issue for Home Bakers, but it's not because we're bad at maths (obvs!). In this post you'll get everything you need to settle pricing issues - forever! Take the 6 steps with deeper insights on being CONFIDENT when you price your cakes instead of awkward. Get a free pricing calculator download to do all the fancy math for you in your Home Bakery Business! Click through to get started. #homebakery #homebaking #cakebusiness #bakingbusiness


ALL Home Bakers do start out at freelancers, but if you desire success for your Baking Business, you’ll need to make the mindset shift into the boss world – sooner rather than later.

Your customers will no longer be deciding what you bake and when you bake it for. They will no longer be influencing your prices.

YOU’LL now be the one deciding how your business is going to operate on every level – and I’m SO EXCITED FOR YOU!!


6. Download your FREE Pricing Calculator

You’ve successfully completed this training on Pricing your Home Baking and now I invite you to sign up to my blog and get access to my FREE Pricing Calculator!

It’s the BEST tool for any Home Bakery Business! You simply type in:

>> Your rate per hour for your labour.
>> The time you spend on the bake from start to finish.
>> Your ingredient costs (including electricity/gas costs, decoration costs, packaging costs, etc. as well here).
>> Your profit percentage.

And then it calculates the recommended selling price FOR you! Tada!


1. Sign up for the Free Resource Library to get the Free Pricing Calculator.

2. When you’ve signed up for the Library check your email (spam & promo folders too!) for the Resource Library’s link and password 😉

3. Make sure you actually DOWNLOAD the pricing calculator. Don’t just open it online – in which case you’ll be able to enter numbers, but it won’t calculate anything. In the Library, click the pink download button – this will open the calculator online. Then click the download button in the top right corner. Open the downloaded pricing calculator on your computer and start typing in your info.

4. To use the Pricing Calculator you need to at least have a PDF reader on your computer like Adobe Acrobat Reader – which is free to download. Click here to download it for free. Follow all the prompts and install it.

5. Don’t forget to add your electricity/gas/propane AND packaging costs to your ingredient costs! If you’re struggling to figure out how much to charge for this, click here to learn how.

6. After calculating a product’s selling price, close the Pricing Calculator and don’t save it. Then open it again and start calculating the prices of your next product. This helps the built-in calculation functions not to get confused.

7. If you want to calculate delivery prices, use the calculator in the same way. Open it on Adobe. Add your fuel costs into the ingredient costs section. Add your wage per hour. Add in the time you’ll be spending driving there AND back. Add 30% profit. And then you’ll get the final delivery price your client needs to pay.

This Pricing Calculator works great on computers. If you want to use it on your cell phone, you’ll need to download the Adobe Acrobat Reader App from the App store.

Here’s a video to SHOW you how to use the Pricing Calculator step-by-step 👇

 “What if I feel overwhelmed & anxious about managing my business’s finances?”

There’s no shame in that. I struggled with the same thing for YEARS! Pricing your bakes, doing your bookkeeping and taxes… This is where a business gets REAL. And it can be very overwhelming if you’re not used to crunching the numbers!


🧁 Be honest: Do you often undercharge for your baking because you’re afraid you’ll lose customers if you charge more?

🧁 Have you been avoiding the huge pile of bookkeeping you have to do, but just don’t know where to even start?

🧁 Do you know how much profit (exactly) your business is actually making? Or do you just kind of hope (and worry in the back of your mind) that it’s making a profit?

All of these are symptoms of not doing your finances correctly.

Managing your finances shouldn’t be such an overwhelming, complicated mission! You could just use all my financial templates and handle your finances in 10 minutes per week.

If you raised your hand to any of these symptoms above, then the “Confident Pricing & Profit Kit” is the perfect fit for you! It’s an online course that helps home bakers to do their pricing & bookkeeping the RIGHT way so they can earn more income without feeling guilty for charging their customers full price.

👉 Click here to check out the Confident Pricing & Profit Kit

I trust that this post has FINALLY given you everything you needed to settle the issues of Home Bakery Pricing!

If you have any further questions, share them with me in the comments below and I’ll get back to you as soon as I can! 😉

Chat soon


Got a question? Something to add? Let’s chat in the comments section down below! (I respond to every single comment)