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How to price cupcakes...? - Page 4

post #46 of 54
Quote:
Originally Posted by CassidysCakesAn View Post

Hi, is it okay to ask for someone's budget? I feel it is kind of tacky, but I hate to waste my time and their's if we are simply too far apart. I had a lady contact me for 50 cupcakes for 30 people. I told her I sell by the dozen and if they were having other food I thought 3 dozen would be enough. She messaged me back saying she wants 4 dozen filled. 1 white with IMBC, 1 chocolate with whipped chocolate ganache, 1 strawberry and 1 red velvet both with cream cheese frosting. I bake from scratch as a cottage baker (which people in my area think that I should be cheaper because of this). I charge $1.50/basic cupcake with American buttercream or Hershy's chocolate frosting (on the back of the cocoa container). I charge .25/cupcake for filling and .24/cupcake for all other frostings. Should i charge extra for the Italian buttercream? Do you think this is too much? I live in a small town in Ms., but only sell to other AF people on the base. These prices reflect my cake prices/Wilton party size serving.

Asking for a customer's budget is fine, and should be done as early as possible to avoid wasted time.

Regarding pricing, be sure to account for your ingredients, labor, overhead, and profit margin. Check out the Pricing Formula link in my signature below for more info.
post #47 of 54
Thanks, I already have figured out my costs and profit. I would like to charge more, but I am already more expensive than the other cottage bakers in my area. I told her it would be $110 for the cupcakes.
post #48 of 54
I also, just figured out a per serving price since I am still new (I just started decorating in June) and some things that would take an experienced decorator no time take me forever. I am mainly using this time to gain experience and skill so that when my husband gets out of the military next year I will be more comfortable charging more money.
post #49 of 54

I'm wondering how much to charge for the more decorative cupcakes. My work (I work at a restaurant) has been offering my cupcakes to party reservations. Most recently I got an order for 2 dozen. I hate being asked on the spot how much I charge so I'm trying to put together a sort of pricing menu that they can hand out. I charged $24 a dozen for the high heels, but I think I under charged. Sometimes the decorations take me a long time, and I want to pay myself a fair hourly rate. 

Here's one example of cupcakes I did (the wiggles). These were 2 dozen and I only charged $40. The detail took me quite a while. This Santa I have also gotten a lot of requests for lately (it's made of 50 cupcakes) and I've been thinking $75 for regular cupcakes and $45 for minis. What do you think?

Thanks for your help everyone!

post #50 of 54
Quote:
Originally Posted by lafoutloud05 View Post

Here's one example of cupcakes I did (the wiggles). These were 2 dozen and I only charged $40. The detail took me quite a while. This Santa I have also gotten a lot of requests for lately (it's made of 50 cupcakes) and I've been thinking $75 for regular cupcakes and $45 for minis. What do you think?

How long did it take you to make the Wiggles cupcakes? How long do you think it will take you to make the Santa cake? What are your ingredient costs and allocated overhead? What does market research tell you about the market value of these products in your area? Are you talking about selling these on your own or through the restaurant?

Note that the Wiggles characters are copyrighted so you would need permission from the copyright owner in order to copy their likenesses.
post #51 of 54
Quote:
Originally Posted by jason_kraft View Post


How long did it take you to make the Wiggles cupcakes? How long do you think it will take you to make the Santa cake? What are your ingredient costs and allocated overhead? What does market research tell you about the market value of these products in your area? Are you talking about selling these on your own or through the restaurant?

Note that the Wiggles characters are copyrighted so you would need permission from the copyright owner in order to copy their likenesses.

Good to know about the Wiggles. I actually didn't even think of that. Luckily it was for a family friend. Anyway, I'm not really selling them through the restaurant. For parties they usually end up getting a sheet cake from Shoprite so now instead they are offering my company's cupcakes. I do bake them there though for health code reasons since it is illegal in NJ to bake from home, but they do not ask for any profit from the cupcakes sold. The wiggles took about 4 hours and the Santa 2 hours. I live near NYC so people are selling regular cupcakes on average $3 per cupcake if not more. I can't seem to find any place around here that sells decorative cupcakes to see their prices. Aside from NY which is about 40 minutes away there is not many cupcake businesses around me. Ingredients are about $10-$15. I save on fondant because I make my own. I would like to make at least $10 an hour.   

post #52 of 54
Quote:
Originally Posted by lafoutloud05 View Post

For parties they usually end up getting a sheet cake from Shoprite so now instead they are offering my company's cupcakes. I do bake them there though for health code reasons since it is illegal in NJ to bake from home, but they do not ask for any profit from the cupcakes sold. The wiggles took about 4 hours and the Santa 2 hours.

Being able to use a commercial kitchen rent-free is a pretty sweet deal, but it doesn't reflect market conditions and you may want to price as if you were paying market rate for a kitchen rental. If your ingredients are $15 for both orders, allocated overhead (insurance, inspection fees, license fees, etc. on a per-order basis) is $20, and market rate for a kitchen rental is $15/hour, your cost for the Wiggles cupcakes would be $95 and $65 for the santa cake. At $10 an hour with zero profit you are looking at a floor of $135 and $85 respectively. Add a 20% markup and you're at ~$160 and ~$100.

You may need to dig a little deeper with the market research and look for bakeries in suburban NYC with a similar demographic makeup to your local area, even if they are further away.
post #53 of 54
has anyone tried the cake boss system? it's suppost to help you figure out your pricing and cost. I was thinking about purchasing it but I was wondering if anyone has used it.icon_smile.gif
post #54 of 54

I'm based in the UK so not sure if this will help but I also find location is a big part too. I live somewhere quite small where I'm lucky to get more than £2.00 per cupcake but down in London people will pay a lot more. I agree with Scarlet cupcake you have to take a lot into consideration beyond the basic ingredients. 

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