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.
Absolutely. Had a very in depth discussion about this on my FB page today. Attracting the right market, and leaving the low dollar buyers behind!