Did I charge too much?
I had an order for cupcakes for a little boy's birthday this past weekend. The customer wanted 24 cupcakes (1 dozen yellow, 1 dozen chocolate). I charged her $1.25 each or $15 per dozen. I made all the batters from scratch as well as the buttercream icing (which is mostly butter). My husband said he thought I charged too much. She knew going in what the price would be.
Replies to This Discussion
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Permalink Reply by dav on
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it is always such a stick conundrum when baking for family, does one charge or not :-(. a way to get past this is have a photograph album of all your cakes with a price next to it. show family the sort of cake size they may expect as a finishing project, hopefully that way you both will be able to negotiate a reasonable price (maybe not at a profit but enough to cover your materials) :-)
Jennifer Carter said:The first time I make a difficult cake, I'll knock off some from the price - I figure that way, if there are flaws, I don't feel bad, and the customer feels like they got a good deal. For example, I charged $40.00 for the cake in my profile picture... it is a beach cake. I know I could charge $50 or $60, but I had never made it before, and I wasn't sure how I would do at carving the hut. It was also for a bridal shower at the school where I work. The lady who ordered it had just purchased a bunny cake for me the week before. (I used a Wilton 3D bunny pan and charged $30.00 - is that too much? I've been wondering... It only held 3 1/2 cups of batter, but it took a while to decorate.) Now, since she felt like she got such a deal on the beach cake, I'm making ANOTHER cake for her this week... That's three cakes in three weeks, just for one person! So I guess there is something to be said for making a customer feel like they got a deal. She was happy to pay $40, and I still made money - even a little more than I had planned, since she ordered again this week. So, everybody wins!
My problem with pricing is friends and family. I have a family member who wants a Shrek cake for her son's birthday, and a mini Shrek head for the little boy to have. I will have to make a 1/2 sheet cake. What do I charge for that? Do y'all give family discounts??
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Permalink Reply by Anne-Marie Main on
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I have an order in May for 200 cupcakes, 100 chocolate, 100 Yellow...Basic icing. What would you charge for a bulk order? Would you stick with $15.00 per dz or would you have a bulk price?
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Permalink Reply by Keri Reeves on
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Do you have bulk time and effort? Charge the full price...Unless she came out and requested a special bulk pricing I wouldn't even bring it up unless you felt comfortable doing that. I've found that when you cut someone a price break, they will ALWAYS expect the same, and while it feels good to do something nice for someone else, you are still the one doing the baking, mixing, icing, decorating, packaging, washing pans, and cleaning up your work area. You can't discount time and effort! :)
Anne-Marie Main said:I have an order in May for 200 cupcakes, 100 chocolate, 100 Yellow...Basic icing. What would you charge for a bulk order? Would you stick with $15.00 per dz or would you have a bulk price?
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Well put!
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Permalink Reply by Kathy Kmonk on
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Kerri that is absolutely correct. If you give a discount once, they will expect it again and they will expect all their friends to get discounts. Since everyone seems to agree that $15.00 per dozen is an excellent price, don't sell yourself short. I keep telling myself now, that even though I want to be nice, I still have to make money. I did a cake last night for a friend and I know I undercharged for it but she's taking it to work and asked me to give her a price list so others in the office can order. So I sent her my revised list... we'll see what comes of it.
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I charge $22 for a dozen cupcakes. They are beautifully packaged and delivered. I can barely keep up with the demand! Never apologize for what you charge. If you are worth it, word gets around. I use organic eggs and butter, Callebaut chocolate and Nielsen Massey vanilla. If you don't think you can taste the difference - you're wrong! Also - a saving money tip - instead of buttercream, have you ever tried 7-minute frosting? Granulated sugar is much cheaper than 10X and we're talking 2 C sug. and 2 egg whites for about 10 cups of frosting. And people adore it! Takes color beautifully too. And guess how long it takes to make???!!!
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Permalink Reply by Bettina Dwyer on
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I too live in a small town and I know damn well that I can't charge what they do in Sydney (Australia) because we simply don't have the high paying occupations around here. You can only charge what the market will bear, BUT you must never sell yourself short. If people want a cheap cake they can always go to the local bakery. Someone questioned what I charged for a simple cake ($AUD80). I KNOW the local bakeries charge at LEAST $AUD50 for a tasteless sheet cake with wonky piping so I think that $80 is realistic and fair.
Cupcakes here are $AUD2.50 each; in Sydney cupcakes sell for anything between $2.50 to $7.50 per cake.
I've had people balk at the cost, but it's their loss as the attention to detail and flavour that I provide won't be found in a store bought cake. I guess too, it comes down to just how special the occasion is. Are they just after a short cut so they don't have to make the cake, or do they actually want something special and memorable?
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Permalink Reply by Stacy on
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I know this was posted a while ago but I just wanted to say that I dont think you are charging too much at all! I live in Southern California and I would pay at least 1.25 per cupcake at the grocery store! And I am sure they wouldnt taste as good or look as good as yours do!
I have the opposite problem with my husband, he gets mad that I charge nothing for the cakes I have made so far. I find myself always saying they are for a friend so I feel bad charging and I just started making cakes.
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I always thought that for pricing you work out what it has cost you for your ingredients alone then multiply that by 4 and what ever price that equals, that's what you should look at charging. Not sure if this is correct but hope it helps xx
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Permalink Reply by Cheri Slider on
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Cupcakes in the Indy area at "specialty" venues are $2.50-$3.50 each. The one place I visited was $2.50 for a non-decorated cupcake and it was on the smaller side.
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Permalink Reply by Eileen S on
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A friend of mine recently suggested opening a cupcake shop in our area. She said we could charge $6/cupcake. I just about fell over laughing! I was like "You're kidding, right? NOBODY in our little town is going to pay $6 for each cupcake" and she said that's how much they charge at Sprinkles in California. I had to remind her this is rural Wisconsin, NOT California. It really does depend on where you live and what the market will bear.
Cheri Semple said:Cupcakes in the Indy area at "specialty" venues are $2.50-$3.50 each. The one place I visited was $2.50 for a non-decorated cupcake and it was on the smaller side.
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At the LA County Fair in California I paid $6.00 for a cupcake! This place is at the fair every year and they always have a huge line! Its so true you have to look at where you live unfortunately.
I actually am not a huge fan of Sprinkles cupcakes. I bet yours are better Eileen! You should move out here and open your cupcake shop! ;)
Eileen S said:A friend of mine recently suggested opening a cupcake shop in our area. She said we could charge $6/cupcake. I just about fell over laughing! I was like "You're kidding, right? NOBODY in our little town is going to pay $6 for each cupcake" and she said that's how much they charge at Sprinkles in California. I had to remind her this is rural Wisconsin, NOT California. It really does depend on where you live and what the market will bear.
Cheri Semple said:Cupcakes in the Indy area at "specialty" venues are $2.50-$3.50 each. The one place I visited was $2.50 for a non-decorated cupcake and it was on the smaller side.
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