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Did I overcharge?????

post #1 of 20
Thread Starter 

I'm new here and I really need some imput.  I have recently started my own business and I was asked for a quote for 4 dozen mocha marble chocolate cream filled cupcakes with vanilla buttercream.  I gave a quote of $69.41.  Is that two much? I know you can get cupcakes at Wal-Mart etc. for half that but they quality won't be nearly as good nor would they be filled.  Any thoughts as to whether or not that amount is to high?

post #2 of 20

That is only $1.45 each, so no, definitely not too high.

 

What you really need to do it sit down and figure out how much they cost you to make, not just ingredients, but things like electric, insurance, etc. Then add on what you want to make an hour.

If you find a post by Jason, he has a pricing formula link in his signature, it will really help you out.

 

You can't worry about comparing yourself to a place like Walmart, they aren't your competition.

post #3 of 20
So, $69.41 for 4 dozen. That's 48 cupcakes, which is almost $17.35/dozen and $1.45/each. That's cheap!
I charge almost that for simple cupcakes, with a simple BC swirl. Your describing what would be a gourmet cupcake-two flavors plus filling and topping. I'd charge more and that's without decorations.

You can't compare yourself to Walmart or any store like that! You honestly shouldn't be selling until you have your pricing figured out, it's tough at first. You just need to be confident and believe in your product-you said it, Walmart wouldn't have that type of cupcake, let alone freshly baked, and it wouldn't taste as good.

You need to look at Jason Krafts site and search pricing here on CC. You need to account for your ingredients, overhead, time (prep, cleaning, baking, decorating, shopping...) plus profit then you'll have your price.

Not everyone is your customer. It's a specialty item of higher quality.
post #4 of 20
Scrum you beat me!
post #5 of 20

Y'all beat me!

Well, all good things must come to an end sometimes. Hey, is that a cake?
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Well, all good things must come to an end sometimes. Hey, is that a cake?
Birthday Cakes
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Birthday Cakes
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post #6 of 20
You went into business without having your pricing in place?

Have you costed out your ingredients at all?

Why are you comparing yourself to Wal-Mart?
post #7 of 20
Quote:
Originally Posted by porporapassione View Post

I'm new here and I really need some imput.  I have recently started my own business and I was asked for a quote for 4 dozen mocha marble chocolate cream filled cupcakes with vanilla buttercream.  I gave a quote of $69.41.  Is that two much? I know you can get cupcakes at Wal-Mart etc. for half that but they quality won't be nearly as good nor would they be filled.  Any thoughts as to whether or not that amount is to high?
It's your business, none of us know what your overhead is and what your costs are or. None of us know what you've set as an hourly pay rate.
Well, all good things must come to an end sometimes. Hey, is that a cake?
Birthday Cakes
(2 photos)
Birthday Cakes
(2 photos)
Reply
Well, all good things must come to an end sometimes. Hey, is that a cake?
Birthday Cakes
(2 photos)
Birthday Cakes
(2 photos)
Reply
post #8 of 20
Quote:
Originally Posted by Godot View Post

You went into business without having your pricing in place?

 

 

 

THIS !!!   I honestly can't believe the number of people who come on here asking this question...


Any answer you get will be as meaningful as any of us telling you how much to sell your house for

Do your own homework - and know your own worth.... set your OWN price ..... AND STAND by it !!

Nobody will respect and value your work until ....... YOU do !!
 

A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

Th...

Misc 3D Cakes
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A sense of humour is a wonderful thing  - without laughter, the world is a SUPER boring place

PS..... only smart people can read truly WITTY comments and chuckle instead of getting all miffed

Hero of all time - GODOT

 

 

www.facebook.com/applegum

Th...

Misc 3D Cakes
(1 photos)
  
Reply
post #9 of 20
Thread Starter 

Like I said I'm new to this lol.  I'm not sure of the things that I am supposed to do really.  How do I go about getting a pricing list?  All I did was go to the store and get amounts and prices and then I figured out how much of the ingredient I needed and so on.  I can you all the help I can get!  There are alot of things that I haven't taken into consideration I guess.  I didn't think I needed to go to extremes if I was just doing this out of my home but I see I need to do more research.  All I've done so far is get business cards,and My husband who is an IT tech is putting a website up.  What else do I need?  HELP lol!!!!!

post #10 of 20
A business plan. There are lots of free sites which outline how to write one.

You need to know legal requirements, true cost of your product, target audience, market value rate, tax rate, & so much more.

www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
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www.VeryDeliciousDesserts.com

https://www.facebook.com/pages/Delicious-Desserts/207874222593145

 

It's never "just cake!"

 

You may get a cake for $way to little but you won't get this cake!

Animal
(4 photos)
 
Reply
post #11 of 20
Check out the pricing formula link in my signature below. There is no "pricing list" you can get from someone else, it's something you need to put together yourself before you start selling.
post #12 of 20
Thread Starter 

Do I really need a business plan if I don't have a high volume of business yet?

post #13 of 20
Quote:
Originally Posted by porporapassione View Post

Do I really need a business plan if I don't have a high volume of business yet?

Yes.
post #14 of 20
Quote:
Originally Posted by porporapassione View Post

Do I really need a business plan if I don't have a high volume of business yet?

You really do.  It's the only way to know if you are going to be profitable now, what to change if it turns out you are not profitable and how you will manage accordingly if your volume increases in the future.  Trust the people that have responded already, they are all in business and are speaking from experience!

post #15 of 20
Not if you're running a charity, but if you are selling things with the intention of actually making some money, that is a business and it is best done with a plan.
elsewhere.
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elsewhere.
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