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How to price cupcakes...?

post #1 of 54
Thread Starter 
Ok, searched everywhere, can't find a forum on it! (feel free to link me if you know of a good one) BUT I just sold my first batch of cupcakes. I charged $2 per cupcake, but I am afraid I may have charged too much? I charge $2 per serving for a BC cake, same amount of ingredients went into making the 24 cupcakes as it would an 8in BC cake, so I figured it was okay...she seemed fine, didn't challenge my price, just said "Okay sounds great!" So naturally, I am thinking, didn't take me long, maybe 10 mins-maybe 5 to do some swirls on those cupcakes, add a few sprinkles...maybe $2 was too much...but she seemed so okay with the price, maybe other bakeries charge more? ugh, I did so much research before starting my business on pricing cakes and 3d cakes, I forgot about cupcakes lol!
post #2 of 54
I charge $3.00 each for my basic Buttercream swirled cupcakes...Any fondant flowers or extras and the price goes up.Just because it only take a few seconds per cupcake doesn't mean you should feel guilty and charge less.Some cakes end up taking more time than you thought so it all evens out.The large cupcake cakeries start at about $3.95 and go up from there..now that's not to say you can charge that and you will get it as every market can only sustain a certain market value and what may be the norm for say..New York City won't be the same as Butte Montana.$2.00 is still not bad but I would raise it a bit if you can...

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Busy Bakin Kakes For Kids!!!

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post #3 of 54
There's a cupcake Forum on here.

$2 really is low. Were they filled?
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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 #4 of 54
Thread Starter 
Quote:
Originally Posted by leah_s

There's a cupcake Forum on here.

$2 really is low. Were they filled?




Nope, just plain vanilla cupcake with vanilla BC! Sprinkles on top..but thats it! There is only one bussiness, they have like 3 locations now, that does ONLY high end cupcakes, I think they start out in the upper $3 range, and go up to like $10 per cupcake! I do not think mine compare to theirs by far, so I know I want to stay under their prices! But other bakeries in the area, and then there is WALMART. ugh, some people think cupcakes should be as cheap as theirs icon_razz.gif
post #5 of 54
Quote:
Originally Posted by ConfectionsCC

Quote:
Originally Posted by leah_s

There's a cupcake Forum on here.

$2 really is low. Were they filled?




Nope, just plain vanilla cupcake with vanilla BC! Sprinkles on top..but thats it! There is only one bussiness, they have like 3 locations now, that does ONLY high end cupcakes, I think they start out in the upper $3 range, and go up to like $10 per cupcake! I do not think mine compare to theirs by far, so I know I want to stay under their prices! But other bakeries in the area, and then there is WALMART. ugh, some people think cupcakes should be as cheap as theirs icon_razz.gif



I'm currently going through the same thing as well. So far I've learned (the hard way) that how much you charge depends on not only on your costs but also what everyone else in the area is getting for theirs as well. More importantly it depends on your business identity, what type of customer are you trying to attract, and whether or not your product is comparable to the other guys. I don't think $2 for a basic cupcake is bad at all but for the personal attention you give your work (after looking at your pics) it probably should be the bare minimum. I turned down my first customer just a week or so ago. It hurt like a SOB but I'm giving the price suggestions made by others on this site an honest run. We'll see what happens. icon_smile.gif
post #6 of 54
Thread Starter 
No-goodLazyBum, I too have had to learn to say NO to people! And I think I have scared a few away, but only those who are looking for walmart cakes and don't care for quality! For the most part, I think I am still under charging for my cakes! Most people it seems are willing to pay more for a better quality cake thank goodness lol! Cupcakes I am still new to, so as I learn new decorating techniques I may be able to charge more..hmm
post #7 of 54
Your price should be based on your cost plus a 20-30% profit margin. Your cost includes ingredients (and packaging), labor (a realistic hourly wage * the number of hours necessary to complete the order), and overhead on a per-order basis (including insurance, license fees, etc.).

I'm pretty sure it took you longer than 10 minutes for all the labor involved in making 48 cupcakes.
post #8 of 54
I charge $18.00/doz. and $5.00 delivery. Minimum order is one dozen.
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post #9 of 54
Quote:
Originally Posted by jasonkraft

Your price should be based on your cost plus a 20-30% profit margin. Your cost includes ingredients (and packaging), labor (a realistic hourly wage * the number of hours necessary to complete the order), and overhead on a per-order basis (including insurance, license fees, etc.).

I'm pretty sure it took you longer than 10 minutes for all the labor involved in making 48 cupcakes.



and along the cost jason mentions, check out this thread about pricing. TexasSugar goes into a lot of good detail (covers what was talked about above too) on how to figure your prices. Whether it's a cake, cupcakes, cookies, brownies, etc... all of your prices are figured out the same, you have the cost of your item, overheads, labor, etc...
http://cakecentral.com/cake-decorating-ftopict-694973-.html
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It's better to be Hated for who you Are,
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post #10 of 54

I so appreciate you all posting these tips and tidbits! My husband and I had the conversation today about my cupcake prices. I am raising my price to $3.00 for the fancier ones. For those, I order decorations and add-ons from Country Kitchen SweetArt. This way, within three or four orders, I make a profit of about $40 or $50.00. Thanks ladies! Now, I do not feel guilty at all! :)
 

post #11 of 54
But if I buy a plain vanilla cupcake, how much would it be...?
post #12 of 54

Mine are never sold in singles, so I am not sure. Although, i am not sure I would feel comfortable selling one plain cupcake for more than $1.50-$2.00.
 

post #13 of 54

Hi there, I am having the same problem. The things I take into consideration is, are they from scratch?, and are u getting paid for your time? One of the other problems we face is we also have to think about paying taxes, fees, and permits. What about the different kinds materials you have to use for the cupcakes. All of that has to be taken in to account. I know that the new  Windows office has great invoices that can help you with the pricing. Try that, and don't discount the work you do.

 

God Bless!!!!!

post #14 of 54

I find your price to be fine.

post #15 of 54

Lovely tips from fellow bakers, but let's also not forget "hidden" costs like liners, business cards, packaging material, transportation fee (if you're delivering.) I also sample cupcakes from around my town, and judge my prices based on which places I liked and didn''t like.  If people can pay up to $3.00 for a bland cupcake that''s not that good from a shop in town, I am confident my home-baked fluffy ones can fetch that price if not more.  It''s about knowing your market value and being confident in yourself as well, I think.

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