Cost Dilemma
All right, so here is my dilemma. I'm starting my own little cupcake business from home, and I'm trying to make my cupcakes affordable. I started making them from scratch, but when added up they are almost $3, without the icing price added in. I even tried making them from the box (not that there is anything wrong with box mixed, I just find making things from scratch more rewarding.) They were still around 1.50 without icing and without making any profit from them. I decided charging $2 would give me $6 in profit for just a half dozen in the end which I believe would cover the cost of the icing. I'm still torn, does anyone know how else I can cut costs? Buy in bulk? Suggestions would be much appreciated!
Replies to This Discussion
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Permalink Reply by nonie chu on
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Is it costing you $3 to make one cupcake or $3 to make one batch of cupcakes? Does one batch yield 1 dozen, 2 dozen, 3 dozen?
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Permalink Reply by Belinda Sizemore on
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It costs $3 to make a single cupcake from scratch that yields about 20 cupcakes. If I use the box mix it's $2 and that yields two dozen. It's quite possible I'm not doing my math right.
nonie chu said:Is it costing you $3 to make one cupcake or $3 to make one batch of cupcakes? Does one batch yield 1 dozen, 2 dozen, 3 dozen?
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You're not doing your math right. Divide $3.00 by 20 and that equals .15 for each cupcake. Now thats only the cake part. Do the same with your icing and add the two together (eg. a batch of icing costs you $4 and you can ice 36 cupcakes that would be .11 for icing for each cupcake. .15 plus .11 equals .26 cents per cupcake. That is not including cupcake liners, gas/electric, other equipment costs, boxes, decorations, etc. and most important YOUR TIME.
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Well, I always did suck at math. I'm so glad my hubby found this website for me. Thanks so much
nonie chu said:You're not doing your math right. Divide $3.00 by 20 and that equals .15 for each cupcake. Now thats only the cake part. Do the same with your icing and add the two together (eg. a batch of icing costs you $4 and you can ice 36 cupcakes that would be .11 for icing for each cupcake. .15 plus .11 equals .26 cents per cupcake. That is not including cupcake liners, gas/electric, other equipment costs, boxes, decorations, etc. and most important YOUR TIME.
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