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How much should you charge for cupcakes????

post #1 of 17
Thread Starter 
I had a cupcakes order from a friend co-worker, first she wanted me to do a birthday cake for her 6 years old daughter but couldn't decide so i showed her a cupcakes that i did for an engagment party one time.. what i did was using my molding letter i molded every individual letters using gumpaste and fondant and put ontop of the cupcakes and whatever left of the cupcakes i add in yellow and purple flowers. So i showed this sample to this lady she said she liked it except the msg will be happy birthday instead of congratulation and that she wanted pink and purple flowers. I did what she asked but i also make couples chocolate molding princess tiare for her with no xtra charge to put on the cupcakes....Long story short she picked up the cupcakes and said she liked it but when she went back to work she told my friend that she wasn't happy and it didnt worth $1.75 each for the cupcakes and that if she bought it at a store it only cost her $7 for 6cupcakes. The reason she wasnt happy because she thought all 24cupcakes that she had order have flowers on them but my understanding was that when i showed her the sample of the engagment one she said she want that but pink and purple flowers instead of yellow and purple....anyway my whole question is what should i be charging for a cupcakes? i don't have a baking business, this was just a hoppy and everything that i buy is in full price...is this my fault? am i charging too much? anyway i will give her back her money on monday because i don't feel good about keeping someone money when the are not happy with the result.
post #2 of 17
Huh? Why would you refund her money? She told you she liked them. She also knew the price of them when she ordered-if she didn't like the price she shouldn't have ordered from you. To me it just sounds like she is going through buyers remorse.
post #3 of 17
started and my business will focus on cupcakes, cookies, cheesecakes, and brownies of all varieties. I do not know how to begin to price the cupcakes...

Help????
post #4 of 17
To the OP, no do NOT refund any money. there's absolutely no reason to.

I can't tell you what to charge for your products because I don't know your cost of goods, cost of insurance and how much your licensing/inspection process costs. I charge $2.75 per cupcake for a creme filled, bc swirl on top with some sparkles or sprinkles. For the cupcakes you described I'd charge $3 minimum, more for the ones with tiaras.

Be sure to check the laws in your state to make sure that you can legally charge/sell baked goods if you're baking from home.
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Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
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post #5 of 17
I don't know where you live and if you are doing it legally from your kitchen. My cupcakes start at $25 a dozen. That is for a basic cupcake, nothing fancy. The price goes up from there depending on what the cupcake will be topped with and if I am making fancy wrappers from scrap book paper. I have charged as much as $7.50 for one cupcake. The $7.50 cupcake had gum paste flowers, fondant and I made cupcake wrappers from scrapbook paper.

For what you described I would have charged $3.50 each. You cannot compete with grocery store baked goods prices. Those things are mass produced. The grocery store is not going to hand make all the decors. I remind people they are paying for a piece of edible art, and it takes time to create that art. I also like to ask people what do they pay when they purchase desert in an upscale restaurant. Where I live, you can't get a piece of pie at a nice restaurant for under $7 a slice. With that said, my cupcake prices look pretty fair.
post #6 of 17
Don't give any Monet back, but do ask her for her feedback so you know for the future. You mightn't have been clear enough on the price. Since you are not legal, people would expect not to pay as much since you are sttill learning and don't have insurance, overhead, etc.

You both need to start a spreadsheet with the cost of everything down to the 1/4 cup and teaspoon. Then figure how much your recipe cost in ingredients. Then wear a stop watch and time yourself making the recipe, washing the dishes, everything. If it took you an hour, put a $ amount on your time. Add these together and then mark up the price for your profit. There is your pay and there is the companies profit.

To the other lady that is making all of the different baked goods and has "started" a business. You should NOT start anything so blindly. If you don't know what to charge, you are not ready.

As you are better and faster your hourly pay can go up so your prices will increase. Neither of you are at the point to charge what the above professionals are charging yet. A hobby is not a profession you can't charge the same.
post #7 of 17
Thread Starter 
Quote:
Originally Posted by PennieK

Huh? Why would you refund her money? She told you she liked them. She also knew the price of them when she ordered-if she didn't like the price she shouldn't have ordered from you. To me it just sounds like she is going through buyers remorse.



She did told me that she liked them but she told my friend that she didn't want to say anything cuz she felt bad...and she thought that i would do flowers on all 24 cupcakes that she had order...it's was just a a miscomunication so i feel bad about it
post #8 of 17
Thread Starter 
Quote:
Originally Posted by cupadeecakes

Don't give any Monet back, but do ask her for her feedback so you know for the future. You mightn't have been clear enough on the price. Since you are not legal, people would expect not to pay as much since you are sttill learning and don't have insurance, overhead, etc.

You both need to start a spreadsheet with the cost of everything down to the 1/4 cup and teaspoon. Then figure how much your recipe cost in ingredients. Then wear a stop watch and time yourself making the recipe, washing the dishes, everything. If it took you an hour, put a $ amount on your time. Add these together and then mark up the price for your profit. There is your pay and there is the companies profit.

To the other lady that is making all of the different baked goods and has "started" a business. You should NOT start anything so blindly. If you don't know what to charge, you are not ready.

As you are better and faster your hourly pay can go up so your prices will increase. Neither of you are at the point to charge what the above professionals are charging yet. A hobby is not a profession you can't charge the same.


That was what i was thinking regarding to what you wrote" a hobby is not a profession you can't charge the same" so that's why i charge her 1.75 just to help cover my cost...so did i over charge her? i called her and txt her saying that if she want flowers on all the cupcakes i will be happy to do that for her but she never return my call or msg...i just feel bad
post #9 of 17
you will always find people that are never satisfied, no matter what you do for them. its truly unfortunate and disheartening. Especially when cupcakes, cakes, etc are supposed to make people happy! Thats why we do this...right??? lol Don't be so hard on yourself, if she knew the work you put into those cupcakes then I can bet she would be keeping her mouth shut. Chin up! icon_smile.gif
"I know God won't give me anything I can't handle, I just wish he didn't trust me so much." ~ Mama T
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"I know God won't give me anything I can't handle, I just wish he didn't trust me so much." ~ Mama T
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post #10 of 17
Thanks for the advice to figure out the costs, labor and insurance. I really appreciate cakecentral because of you people with talent and experience who do not mind sharing your experience and expertise.

To the person who stated that I am not ready to start my business just because I am not certain as to what to charge as far as pricing. FYI, I have been self employed since 1996 just not in this business. I have been baking for the past 3 years and now its just that instead of doing mostly cakes, I am interested in focusing on cupcakes.

This forum has a wealth of information on it, and newbies like myself could really get a lot out it with instruction and constructive criticism.
post #11 of 17
Thread Starter 
THANX everyone for your advice..I knew this would be a place to go...so thank you
post #12 of 17
Quote:
Originally Posted by linda2006

That was what i was thinking regarding to what you wrote" a hobby is not a profession you can't charge the same" so that's why i charge her 1.75 just to help cover my cost...so did i over charge her? i called her and txt her saying that if she want flowers on all the cupcakes i will be happy to do that for her but she never return my call or msg...i just feel bad



You did not overcharge her at $1.75 for all the work you put in. It may not take you very long or cost very much to bake the cupcakes, but all the work and time you took to make the decorations. You would be surprsed at how long that took and at, say $10/hour, how much that would be.

Do not refund anything on that order. She told you she liked them when she picked them up. She had the opportunity at that time to say she thought there would be flowers on all of them but didn't. Apologize for the miscommunicaton and chock it up to a learning experience.

Did you happen to take a picture of them?
post #13 of 17
cupadeecakes was right in saying that you need to figure pricing before you "start" your business. And if you have been in business that long, you would not need to ask the question. Established businesses know COGS and profit, as well as all of their competition.
post #14 of 17
@spc1127, I have no issues pricing cakes, just that cupcake prices varies so much here in South Florida, I thought I would solicit some opinions. I do appreciate the people who gave advice. There is a big difference of pricing in this business than Consulting and Business Coaching which is what I have been doing since 1996.

I have sent you a private email as I would like to give my further thoughts to you in a private manner.

Good Day to ALL.
post #15 of 17
Achievadiva, cupadeecakes still gave the correct response, reading exactly what you said. And again I will say that anyone who has been in business three years making cakes, could price their cupcakes. I have no desire to hear any of your opinions in a pm. And I refuse to debate with you here.
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