The Real Cost of Custom Cakes
The Real Cost of Custom Cakes
Someone recently shared that they purchased a 6-inch heart-shaped Lambeth cake for £20 in Eastbourne, East Sussex. At first glance, that might seem like a bargain—but in reality, that baker was essentially paying their client to take the cake. I couldn’t stop thinking about it, so I wrote this article to highlight the real cost of custom cake design and explain why fair pricing is essential for running a sustainable business.
Many people assume a cake is “just a cake.” However, running a successful, sustainable cake business quickly proves otherwise. Behind every beautifully decorated, bespoke creation are hours of skilled labour, careful planning, and significant overhead costs.
Understanding the real cost of custom cakes is crucial—not just for bakers, but also for customers who want to appreciate the value of these creations.
The Real Cost of Custom Cakes: Breaking It Down
To understand why £20 is far below what a baker needs to charge, let’s look at the costs of creating a 6-inch heart Lambeth cake.
Ingredients
- Cake & Swiss meringue buttercream (flour, sugar, butter, eggs, flavourings) = £12.48
Even if ingredients are bought in bulk, high-quality items like butter, eggs, and speciality flavourings quickly add up. Premium ingredients for custom cakes make them taste amazing, but they also increase costs compared to a simple home-baked cake.
Labour / Time
- 4 hours production @ £12.21/hr = £48.84
Custom cakes require multiple steps: baking, cooling, filling, crumb coating, decorating, and detailed piping. Each of these steps is hands-on work that can’t be rushed without affecting quality, which is why understanding the custom cake labour cost calculation is essential. Each of these steps is hands-on work that can’t be rushed without affecting quality. I have worked this out at the National Living Wage for the purpose of this article.
However, I believe that most professional bakers possess skills that warrant higher remuneration. For example, when making a cake, I break down my labour costs by task: intricate and skilled cake decorating, which I have spent years mastering, along with business-related tasks such as accounting, website management, and SEO, are charged at £17.13/hr, reflecting the UK’s national average for a skilled worker. More routine or less specialised tasks, such as washing up and cleaning, are charged at the National Living Wage.
Indirect Costs
Indirect costs are often the missing factor in most home bakers’ pricing calculations. They take time, research, and experience to assess properly, but they are essential for running a successful, sustainable business. These costs can include:
- Website, insurance, accounting, food safety, recipe development & testing, branding, rent/studio, utilities
- For a small bespoke cake with Lambeth piping, these are calculated at roughly = £16.00
These are the business essentials that keep a cake business operating legally and professionally. Many home bakers underestimate these costs when pricing their cakes.
Variable Running Costs
- Packaging (board, box, ribbon) = £2.20
- Admin & customer liaison (0.5 hours) = £6.11
Subtotal = £8.31
Custom cakes require extra care in packaging and delivery. Admin work—communicating with customers, answering questions, and managing orders—is also a huge part of running a successful cake business.
I would argue that, although most (note: most, and certainly not all, unfortunately) custom cake makers will at least estimate their packaging costs, I doubt that many fully account for the realistic time required for admin and customer relations per cake. For bespoke designs, tasks such as communicating with clients, answering questions, sourcing speciality materials, and managing orders can easily take 2–3 hours—far more than is often reflected in pricing.
I work out an average time spent on all my bespoke orders and charge a little less for designs that require less admin time, such as my BouCake range.
These overhead costs for running a cake business are essential to operate legally and professionally. Many new bakers underestimate these costs when pricing their cakes.
Total Costs
Grand total = £85.63
With 20% tax = £102.76
Even before adding profit, the cake costs over £85 to make. That £20 cake is not just undervalued—it’s unsustainable.
Why Baking a Cake at Home Isn’t the Same
Even if you’re baking a cake at home for your family or friends, consider the time investment:
- Shopping for ingredients
- Measuring and mixing
- Baking and cooling
- Preparing fillings and buttercreams
- Decorating
- Washing up and cleaning
For a seemingly “simple” cake, this can easily take several hours. Now imagine intricate designs like Lambeth piping, sculpted elements, or tiered cakes—the time investment multiplies.
Business baking adds extra layers of responsibility: quality assurance, compliance with food safety standards, packaging, delivery, marketing, and customer liaison. This is why pricing a custom cake fairly is essential.
Local Pricing Examples: Heart-Shaped Cakes in East Sussex
To give some perspective on realistic heart-shaped cake prices in the UK—even though these may still be slightly underpriced—here are examples from local East Sussex bakeries:
- Ticehurst: 6″ decorated cakes ~£80, 8″ ~£120
- Eastbourne: 6″ novelty heart cakes start at ~£70
This shows that for a professional, hand-decorated cake, prices typically range from £70–£120. A £20 cake doesn’t cover even the basics.
Why Undercharging Hurts the Cake Industry
1. Unrealistic Customer Expectations
When customers see extremely low prices, they assume all cakes should cost the same. Later, when other bakers quote £80–£120, they may be perceived as “overcharging”—even though the price reflects real costs and quality.
2. Burnout and Business Collapse
Bakers who undercharge risk burnout. Custom cakes are time-intensive, labour-intensive, and require high skill. If a baker cannot sustain the business financially, they may be forced to close, leaving customers disappointed and damaging trust in the industry.
The Gendered Side of Cake Pricing
Cake making is a largely female-led industry, yet many bakers struggle with charging fairly for their skills and time. This issue is not just about personal confidence—there is a broader systemic context influencing pricing practices.
Gender Pay Gaps in Female-Dominated Professions
Studies consistently show that women in female-dominated professions are often paid less than men for equivalent work.
- Office for National Statistics (ONS) – Gender Pay Gap in the UK: 2024
This report reveals that women are more likely than men to work in lower-paid sectors, such as care and leisure. Even within female-dominated occupations, women often earn less than men. (ONS) - ONS – How Do the Jobs Men and Women Do Affect the Gender Pay Gap?
This analysis highlights how job types and responsibilities contribute to ongoing pay disparities between men and women. (ONS)
If cake-making were historically male-dominated, undercharging for work would likely be far less common, as societal expectations and historic pay norms would be very different.
Underestimating Business Costs
Beyond gender expectations, many new bakers also underestimate the full costs of running a business. From sourcing ingredients to production, packaging, administration, and overheads, running a cake business involves far more than just baking. This lack of understanding can reinforce underpricing and make it difficult for bakers to charge fairly.
Tips for Fairly Pricing Your Custom Cakes
- Calculate ingredient costs precisely
- Track your hands-on time
- Include overheads and indirect costs
- Add a reasonable profit margin
- Communicate value to customers—explain what they’re paying for
A well-priced cake reflects skill, time, and professionalism, ensuring that your business can thrive.
Final Thoughts
A custom cake—like a heart-shaped Lambeth cake—is much more than ingredients. It represents:
- Hours of skilled labour
- Years of technique and practice
- Overhead and compliance costs
- Packaging and customer service
A £20 cake might look beautiful, but it’s unsustainable for a serious cake business. Understanding the real cost of custom cakes ensures that bakers price fairly and customers appreciate the artistry behind each creation.
Love From Luisa x