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[b]Cookie Pricing[/b]

post #1 of 13
Thread Starter 
I am decorating sugar cookies for a lady who wants to take them to work and give them to clients (and co-workers) and I don't know what to charge her per cookie or per dozen?? How much for each??

She wants about 3 inch round, flower, hearts, etc... with royal icing, 2-3 different colors per cookie. Individually packaged with ribbon and labels. Sometimes personalized.

This is my 1st time having a someone order from me. She will be a long standing cusomer with about 12 cookies per order.

Please help!!

Thanks
Katie
post #2 of 13
I would charge at least $3.00 - $4.00 per cookie.They are extemely time consuming and the extra colors make it even more time to ice.Also the ribbon and labels cost money also!!

Busy Bakin Kakes For Kids!!!

Mom to Mitchell 13 yrs and Delaney 11 yrs

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Busy Bakin Kakes For Kids!!!

Mom to Mitchell 13 yrs and Delaney 11 yrs

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post #3 of 13
I charge $2.50 for 3", $3.00 for 4", etc in increments of .50 per inch. Some things to consider when making your price....
The more you do the less expensive it is- b/c you make a whole batch of icing to use and you can use it all up. you are using only one flavor dough & icing etc.
If you plan to have a working arrangement with the lady you might want to consider giving her what I call my "wholesale price". That means you get a price you would charge a one time customer- then subtract a small percentage for her ( I do from 10-30%). That way she feels she is getting a deal. If she tells others what she pays you simply say "That is my wholesale price, my retail price is XX" I do this for people that use me to on regular basis for work. Many companies also do this.

As the other post mentioned...make sure you factor in the cost of your ingredients, plus the materials used ( Ribbon, sticks, containers, labels, etc) . Then you can use a starting point of 3x the actual cost to find the retail price. you should also shop around your area to see how you fair with others' prices.

I will share my cost worksheet if you would like..you just fill in your costs and you get the actual cost. It is in excel 2003. let me know.

Good luck and great job getting the long term customer. Those are great to fill int he slow months! icon_lol.gif

Julia
post #4 of 13
here is another link to a post about pricing cookies.


http://www.cakecentral.com/cake-decorating-ftopict-16380-cookie.html+pricing

you could also do a search for 'cookie pricing'....there are a lot of posts for this...lots of good info!!

hope this helps
christine
post #5 of 13
I usually charge $1.50 a cookie not including the wrapping/ribbons. If the cookie is larger or has a complicated decoration, of course I charge more. But it really depends on what the bakeries in you area are charging too. If you find out what they charge, you can get an idea of what things go for in your area. Just don't undercharge!!! Yours are probably better than the bakeries!!
"My friends are my estate."
Emily Dickinson
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"My friends are my estate."
Emily Dickinson
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post #6 of 13
I made a cookie price matrix that's specific to the recipes that I use. This way I can see all my expenses and I have a better understanding how much to charge per cookie or bouquet.
The 6 Ps Law states Proper Preparation Prevents Pi$$ Poor Performance.

-Mr. Morganti
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The 6 Ps Law states Proper Preparation Prevents Pi$$ Poor Performance.

-Mr. Morganti
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post #7 of 13
For the first time, I am going to be bringing decorated bunny cookies to my job to see if anyone will place an order for Easter. They are about 3" x 2" sugar cookies and will have a simple bunny face on them (will post when I finish them). I was thinking of charging $10 per dozen. When weighed, the cookies equal about 6 per half pound. If I remember right, the bakeries charge around $6-7 per pound for butter cookies, so don't want to price myself out of business before I start.

Was trying to figure out how much it cost per batch, but the problem is figuring things like flour, sugar, etc.... does anyone know how many cups of flour come in a 5-lb bag? How about sugar in a 5-lb bag? The buttter is easy because the average non-sale price is about $4 a pound, basically $1 per stick. Once I can get an idea of each individual item is costing per batch, then I can reasonably think of charging. The idea of $1 per inch is ok, but don't think anyone would pay $2-3 for each of these cookies.

Help!!

deb
mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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post #8 of 13
But why should YOU charge less, just because THEY don't want to pay more? If they really want the cookies, they will pay for them, I promise you.

Bakeries can charge that kind of price because they aren't decorating the cookies....basic butter cookies are relatively cheap to produce, and don't require much time to make. You aren't competing with butter cookies - you're competing with decorated sugar cookies, and in that case, you really shouldn't be charging anything less than $1.50 - $2.00 per cookie..MINIMUM.

I know you would like people to order your cookies - but at less than a dollar a cookie, you're pretty much paying the customer, rather than them paying you. Do you want people to order from you because you're cheap? Or would you rather the focus be on the quality and uniqueness of what you make?

I'm sorry if this seems harsh - it just bugs me when I see decorators willing to give their hard work away. I don't walk into a store, and expect the owner to lower prices until they're in line with what I think a product is worth. The price is the price, and I either choose to pay it, or I don't. Why should you operate your business any differently? Not everyone will want to pay $2 for a cookie - but plenty of people will. A quick search of websites advertising decorated cookies (including plenty of amateur work) will show you that very, very few people price below $1.50 per cookie.....there's a reason for that. Follow the market, and get it out of your head that bakeries are your competition. They aren't! In addition to the fact that bakeries typically WON'T take the time to produce decorated cookies (beyond something very basic), bakeries also get wholesale pricing on things like flour and sugar...and often use cheaper margarines and in some cases, even cookie mixes, to make their products. You're baking from scratch with whole ingredients, without benefit of wholesale pricing.....they just aren't your competition. Whether you're making cakes or cookies, your pricing should never be less than what your local bakeries charge.

Please, please, please - don't undersell yourself! icon_smile.gif
post #9 of 13
Sugarsugar, thanks so much for that pep talk.....you are right, why undersell ourselves. I think $1 per cookie is still a fair price, but want to crunch numbers to see exactly what they cost (cups of flour per bag, sugar per bag, etc...). Being this is a first time project, let's see what the folks will pay.

This is my first attempt at decorating cookies (beginning baker/decorator in cakes), and unfortunately I am no artist (next time may stick to easter egg shapes), but wanted to get these to the folks at work to give them a taste of this great cookie. The cookie itself came out wonderfully. I have attached pics - no laughing icon_redface.gif - and you can see that I have alot of practice needed, and learn not to put my fingers too close to unset icing! When I added the water to Alice's icing to thin, I stirred by hand, not by mixer, and I can see how the icing separated a little because it was not properly mixed......still tastes good! I want to try a batch of cookies with the royal icing next, and see if that will work better. Ok everyone, constructive comments will be greatly appreciated.

Deb icon_biggrin.gif
LL
LL
LL
mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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post #10 of 13
I would charge $1.50, .50 for the bag and ribbon. Those things are not cheap. Also, it is alot of labor to have so many colors.
To baking be true!
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To baking be true!
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post #11 of 13
Amen Sugar! I agree with you as well. Well, if those bunnies ar your 1st attempt I only expect you to be dazzling us with your next few batches. Dont forget the cost of the packaging and delivery (if you offer this service) in your pricing.
post #12 of 13
Julia,

i would like to see your cost work sheet. i started one myself but i only know the basics of excel so mine isn't anything special.

if you would my email is lruhl@kenttech.com

thanks
lacie
post #13 of 13
I have made my second batch of decorated cookies (attached) that I will be bringing in to take orders. Turned out better than my first try, however the icing on the bunnies was too stiff to outline - figured out how to correct by the time I did the chicks. As these are bigger cookies, I know they are worth $2.50-$3, however am taking Easter orders at my "introductory" price of $1.25. By the end of the summer I plan on having nicer looking cookies, and will be charging full price! These are no-fail sugar cookies, with royal icing. The picture I attached shows how large they are (and will use this as my for sale sign at work) so folks can see yes, these normally go for a good $3 each!! Wish me luck!
LL
mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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mom to Christine, John, Michele, Joseph & Peter......grandma to Zachary and Colette
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