I'm so excited! Next weekend I'll be selling cupcakes at the local farmers market for the first time!

I've broken down my costs for everything from space rental to ingredients and packaging. I'll be selling my cupcakes by the 1/2 dozen to which my total cost is $2.34 for each 1/2 dozen. I figured I would sell the 1/2 dozens for $8.00 each. Does that sound like too much or too little? In comparison to other local bakeries who charge upwards of $3 per cupcake, I'm much cheaper at only $1.33 per cupcake, mainly because I dont have the overheard of an actual storefront. I would appreciate any insight anyone may have to offer as to whether they think I should be charging more or less.

Thanks!

I think it depends on the area and what people are paying for cupcakes...I charge $1.00/cuppie or $10 a dozen, but that is only because I live in rural western Nebraska where people are not as willing to pay as much. Plus I don't know that my cupcakes are worth more than that... they are just plain cupcake flavors with SMBC swirls! I would guess decorated cupcakes would be worth more...

In your figured did you allow for the cost of your time? for example if it takes you 1 hour to make a dozen and you pay yourself 10 an hour that 5 buck labor for each 1/2 dozen. Don't forget your time is worth money too.

JMO

Judi

Also, you do the rest of us a great disservice by pricing so low. How am I gonna justify charging $2.50 per cupcake (and up) if you're willing to underprice by so much?

Don't forget to factor in waste. Do you think you're going to sell ALL of your cupcakes?

I hated selling at the farmer's market. I could never calculate accurately what would sell each week and I always had more waste than I would have liked. I charged more for the stuff I sold to account for the stuff I had to make - but that didn't sell. I also had to pay for parking and gas.

The arguments about undercutting are so tiresome! If your market will only tolerate $8.00 for six cupcakes and you feel that the profit is worth your time, your price is right on. If you are interested in volume, you price your goods to move, while still putting money in your pocket. That should be your guide. Spending the day at the farmer's market with cupcakes priced at $2.50 each in a market where the threshold is $1.50 is not smart business. Best of luck!

Don't let others make you feel responsible for the success or failure of other bakers. You saw a market for lower priced, delicious goods and are attempting to find your niche - Go for it!

I am going to encourage you to charge at least $15.00 for your 1/2 dozen cupcakes. Let me tell you why...people who want luxury items want LUXURY items. If you ever want to be able to sell an $8 a slice wedding cake, you can't be known as the $1. cupcake lady from the farmers market. We have the most expensive cupcake in our area, and we still sell more cupcakes BY FAR than anyone within 50 miles of us. In tough economic times, people want to treat themselves. If they are looking to save money, they will buy a cake mix and the cake mix doctor book and make them at home. They want to think of their treat as special, and there is nothing special about a $1 cupcake. Think of your marketing image. Don't be pennywise and pound foolish.

JMO.

I would charge more. Speaking as a cupcake fanatic, I have certain expectations that go along with price. I have made it my personal mission to drive around Dallas in search of my next favorite cupcake. If I go somewhere and the cupcakes are really cheap, I almost assume they won't be as good. I know...I know....crazy consumer psychology (that's why people get degrees in marketing).

I also work for a high end nat'l brewery and pricing is so important. We expect that our prices should be at a certain price due to brand image, cost of ingredients, ect. It is just something that every brand and manufacturer has to take into consideration when they are determining there place in the market.

Good Luck!

How wondeful for you - great to see you have a chance to sell your little creations - ENJOY your day and after day one then you will know whether what you charged was correct.


One hint i can offer - take some pretty cloths with you to place on your tressle/tables and if you have time buy a little bunch of fresh flowers and pop in a vase - it looks so *homely* when your stall is set up.


I am happy for you and wishing you a wonderful day.

Bh.

I agree with Bluehue - and Good Luck!

This is a difficult situation that we all face.

We are preparing to open a Bakery in our hometown. I love the surrounding towns, the buisness they have to offer and the enviroment you experience when you are there. I shop there because of the experience...something different, fun and new. It is a treat. I want to bring that to our hometown. Our hometown is growing, but there are few buisness like the one I will open. Again, I am hoping to start that trend and pull people to the enviroment that we are attmempting to create.

Our plan is to have a specialty cake shop/bakery. Thus far everything has gone well for us. The bottom line..... we are all concerned about what people are willing to splurge on (and/or how much to splurge). The Chamber of Commerce had one concern...pricing our goods out of the range of the town. (I do not feel that is the case) They want to ensure that we would survive as a buisness, and so do we. Marketing and they way people perceive you is huge and will ultimately decide what the consumer will be willing to pay and the extent they will go to get your product. If you can market to people in outlying towns, then you'll make up for who you don't catch in your town. You have to offer services/goods like no one else. Everyone needs to get the instant craving for your cupcakes as your name is spoken. Not everyone can afford everything and you can't meet everyone's needs. Marketing to the mid-upper range of the community should be profitable for you and will still allow the grand majority to taste your wonderful treats. Like people have said before, Walmart is always available for cake orders for those that need a more budget friendly option. I get both sides of the fence and I think you have to use your best judgement to ensure that you find a happy medium. One that you can continue to build your reputation and still be within the budget of your clients. You'll figure it out!

I appreciate everyone's comments. I know there's a lot of talk of undercutting other businesses that goes on here on CC and I'm not in any way trying to stir up trouble. I definately do not want to been seen as a "low end" budget bakery. But, as someone mentioned, economic times are tough and thats my other concern. Speaking personally, I can hardly justify splurging on things right now, and maybe I'm feeling others wont either. Since January, I've already noticed that my cake sales have flopped.
What I was considering was having three level price points for my cupcakes. I'd have my basic white or chocolate cupcakes piped with a rosette in BC or Ganache, a mid-level cupcake piped a little more intricately and maybe injected with filling and a gourmet cupcake in one of my signature flavours, iced in BC with fondant or decosponge accenting. i also figured on making a couple of cupcake bouquets for display, especially because it's leading up to easter. Maybe some NFSC bouquets as well.

I'm aiming for middle of the road with prices. Not quite as high as luxury gourmet bakeries but not quite as low as one local baker who offers her 1/2 dozen at $5.99 (CDN!!! consider what that is in US$!!!) the problem with this baker is that she's gained a lot of popularity with schools and families because of her price and also the fact that she's a nut-free bakery that also eliminates 7 common allergens from her baked goods. They're egg-free, nut free, dairy-free etc. Frankly I dont see how she's making any profit whatsoever. But again, it's hard to compete with that.
I absolutely appreciate everyone's feedback on this topic, I know it can be a bone of contention here, and I fully understand why.

I intend to take everyone's feedback into consideration and reconsider my pricing. Thanks!

nolee- I charged $12 for a dozen. The overpriced tag on cupcakes is crazy. So I think your price is fair and remember like Jp said "if there is a market for lower priced good in your area then by all means get in where you fit in.

Honestly, If I'm going to pay $4 for a simple cupcake, it had better be the best tasting cupcake I have ever had. I too, go from bakery to bakery, sampling what they have to offer. The best cupcake I ever had was $1.75. I don't assume that the more expensive product is going to taste better. You hope so, but most of the time I'm really disappointed. And then I'm mad that I wasted my money.

I like the idea of dressing up your stand with table cloths and flowers. Also, I agree that there will be waste that you need to consider. I would make mini cupcakes for people to sample. If they are truly delicious, people will pay whatever price tag you put on them. I honestly think that you'll have much more in sales, if you do the samples, than if you don't. Just factor the samples into your cost. There will probably be a lot of other vendors selling baked goods. I think the display and samples can really set you apart, regardless of price. Also, be sure to have your business cards, your labels with your phone #, etc. Every person is a potential customer for cakes down the road, even if they don't buy something from you that day. Be positive, smile, and look like your having fun! People will gravite towards you. Good luck!

Okay..I am gonna step in and give my 2 cents worth I live in a large Canadian city...over 1 million people.There is 1 major cupcake place here that just opened up their second location.They charge $2.95 per cupcake $36.00 per dozen and many times they are out before 1pm and they don't rebake!! They are lined up always...and for why..I'm not sure because I have had their cupcakes and they are not that good. Same old dry cake and sweet gritty icing just swirled ontop.They package them up in these expensive brown boxes with satin ribbon so that is probably where your money is going to is to pay for the expensive packaging!!Now having said that....the marketing idea is working!! Yes...the economy is playing a huge role in what people are spending their money on but I don't see coffee places like Tim Horton's or Starbucks parking lots empty...rather busier than ever.People want a treat that is affordable like coffee and a cupcake.They will pay a bit more for a good..and bad product for that matter..they just don't know the difference between a Great cupcake like we bake .You have to stay within the pricing ranges of your area though and I understand that...economics will determine that but don't assume that you have to be cheap to get business.I wouldn't charge less than $2.00 a cupcake anywhere because it takes alot of time to do cupcakes even with just a swirl ontop!I can't see anyone making a cupcake for less JMO As for overhead....customers don't need to know if you have overhead..Go to the Farmers Market and set out your goods and be confident that what you bake is the best in town...and price it at that!! If people don't buy then you can adjust for the week after but don't give your goods away! I was at a bake sale at Christmas and ladies who had different tables were selling pastries/turnovers for 6/$8.00 and cupcakes for $2.50 each and breads for $3-4 a loaf etc...the tables were empty!! And me..I just wanted a home made cinnamon bun and I paid $8.00 for 6 and they were dam good!! Good luck at the market!!

I agree that you definitely have to look at what people in your area are willing to pay (within reason). I live in a small town that has only grocery store bakeries so I have try to be somewhat reasonable. Having said that, I will also not give my product away for free or with hardly any profit. If I did that then I would have to ask myself "Why am I doig this?" I am amazed your cupcakes only cost you .13. Do you bake from scratch or use a mix? I bake from scratch and even my basic vanilla with vanilla buttercream cupcakes cost at least .30 each. Did you inlcude packaging, the baking cup, etc? If so I would love to know how you get them down to that price. Mine are $1.50 for basic vanilla or chocolate with vanilla buttercream and 1.75-2.00 for filled . I know there are still people who will say that they won't even pay that much, but they are usually the ones who want something for nothing or will just bake their own. I understand about being frugal, but if you want something that is extra special then you will have to pay for it. Remember "you get what you pay for". Good Luck!

cakeandbakehelper888....

I see that you are new here...However being snide and making assumptions that the Original poster, or any other person in this community or otherwise, who bakes and decorates cakes for money is basically robbing people by what they charge is an extremely Rude asssumption to make. Maybe you should think about what you are typing beforehand.....and Yah...If you could get $30.00 a dozen for cupcakes then I would say Good for You!! ...Not.. "Why don't you just mug someone!!!" I mean really

lady?? Edna, you're too kind...........troll is much more appropriate

Yah yeah know..I usually keep out of these bashing threads but this one just Pissed me right off!! I mean who the HE$$ do these people think they are!!

I'm gettin too old to put up with this from Trolls!!

Wow Edna, I just read that person's other post & I don't even know what to think. I wish real cake people would just stay on here & not people who don't take it serious. I may not agree with everybody on here, but I LOVE the fact that everyone's opinion is coming from actual expierence or if they don't know a lot, they are here to learn more. Everyone is here, cause they really care about their craft! This site (though this may seem pitiful on my part) actually means a lot to me. I have been in love with baking since I was a kid. I have been BLESSED with GREAT friends that are more like family. They are willing to listen to me talk cake baking & decorating stuff, but they are not interested in it. They can't really conversate back. Here is where I get to come & talk about my second favorite subject (my kids are my #1 subject of course) & everyone relates, everyone is just excited, & just everyone gets where I'm coming from & how I feel. I just think it's ridiculous for someone just to come on here to stir up trouble. And for those of you who haven't read the other thread that cakehelper person said it was robbery to charge someone $700 for a huge 4-tier cake covered in fondant, with calla lillies cascading down the side AND, get this, that from beginning to end it shouldn't take more then 3 hrs to make. WHAT!?!?! Obviously they don't know what they are talking about it. And if they are an irate customer logging on,if it's that easy make it, do it yourself or go to Wally World! Sorry everyone for taking so long. That just kind of touched a nerve, not to mention how they kept attacking Edna, someone I always see on here being helpful.

I think perhaps Cakeandbakehelper888 does not work in a bakery. If she did she would know how long it takes to bake and cool a 3 tier cake.
Perhaps she decorates them directly as they come hot out of the oven? Like those magical ovens where you put the batter in, and a fully decorated cake comes out in 15 minutes.
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Not to mention she just signed up and posted 4 rude posts.
Like my new pan?

I think this whole situation is hilarious!

I personally am offended because everyone knows that I am Edna's cyber-stalker and I don't appreciate some troll honing in on my turf!

That being said, you have to take this fakerbakerhelper person as a joke. No photos and she wants to attack one of the best designers on this website. FRICKIN' ACD people! I highly doubt the person who wants us all to charge .30 cent a slice for our cakes so everyone in the world can eat our BC is going to show up in MAD magazine, let alone ACD.

Laugh it off everyone, Ashton Kutcher is punking all of us.