There is a baker in my WV town that sells one cupcake for $7.00. And I have one here now. She is my favorite baker. And they are always available, so more people than just me are buying them in this recession depressed WV area. This isn't even my target market. I go 10 minutes away to MD where the economy has remained stable the last few years.
My point is that sometimes a product defies demographics. This cupcake is vegan and is sold in a vegan/vegetarian restaurant. I am neither, but this town has only three good restaurants that are not chains. This restaurant is one of them.
I've tried to dissect this cupcake and it baffles me. I never buy sweets, but I went in for a salad to go and there it was again.
She has quite a few absolutely delicious desserts and they are all $6 to $8. A cookie is $5.
You have to find your place in the market, but then ingredients, convenience, delivery, and any other asset that your company has, can affect the final price. For this lady, she has an upper income clientele plus many health conscious diners. Her ingredients are higher too.