I have an order for this weekend for 3 dozen cupcakes and a 6" cake for the top tier. I am currently charging $2.50/cupcake and charged $48 for a 6" cake since I think it will feed 8 people - which comes out to be $6/slice. The cupcakes will have buttercream and fondant accents dusted with pearl dust, dragees and royal icing flowers. These are regular sized cupcakes, not the big ones like Crumbs. I was thinking about raising my prices to $3.50 or $4 per cupcake, but someone told me I won't get repeat customers at that price. Is my pricing fair for the cupcakes and 6" cake?
It's impossible to say without the context of knowing where you live. What do your competitors charge? Have you shopped around to see what the going rate is? People here can tell you what they charge, but it won't really mean a thing unless they sell in your area.
BTW, a 6" cake serves 10-12. Eight slices from a 6" cake are giant sized servings.
I think your prices are fair.The popular cupcake cafe here sells their cupcakes for $2.95 each.I sell mine for between $2.50-$3.00 depending on embellishments so I think you are right on.Unless it is a fairly large cupcake (Not standard size) I wouldn't raise your prices unless they are all fondant,flowers,dragees etc..
I'll bet the "someone" was family, am I right?
For those who won't buy because your prices go up, ask them, "Has YOUR gas gone up? Have YOUR groceries gone up? Has YOUR water bill gone up? Has YOUR health insurance premium gone up? Has YOUR job cut all overtime? Hmmmmm. So has mine."
It's impossible to say without the context of knowing where you live. What do your competitors charge? Have you shopped around to see what the going rate is? People here can tell you what they charge, but it won't really mean a thing unless they sell in your area.
BTW, a 6" cake serves 10-12. Eight slices from a 6" cake are giant sized servings.
I live in NYC and I am not sure what the going rate for cupcakes with embellishments are. Chains like Crumbs are selling the big cupcakes for $3.50 each but it only has frosting and some sprinkles or chocolate chips on top. I do not see cupcakes sold with butter cream, fondant accents, dragees or with such details in any shop. I started working on the decorations yesterday. Making fondant flowers are very time consuming!
I know a 6" cake feeds 10-12, but people look at me like I have 2 heads when I tell them that a 6" cakes will cost bet. $60-$72 when it is prices at $6/slice - which btw is that fair? Should I lower the price to $5/slice?
Thanks.
I'll bet the "someone" was family, am I right?
For those who won't buy because your prices go up, ask them, "Has YOUR gas gone up? Have YOUR groceries gone up? Has YOUR water bill gone up? Has YOUR health insurance premium gone up? Has YOUR job cut all overtime? Hmmmmm. So has mine."
The person who told me I won't get repeat customers $3.50/cupckae was a coworker - who lives in the city nonetheless. As for my family members, they are quite conservative and don't understand all the time and effort it takes to decorate. They feel it is a waste of time. They love how it looks, but would never pay for the prices I charge. They feel strongly no one else would as well. I feel there is so much push back that I feel I am not doing anything right to get people to appreciate what I do. I enjoy decorating greatly and I want to be able to expand and put myself out there so I can find people who do appreciate what I can do. Hence the pricing question. I feel like I don't have much to compare myself to in my immediate area.
Thanks everyone for such supportive and insightful answers!
Man, I woulda bet my butt it was a family member! 
Family won't support a price increase because family is/are usually the worst when it comes to being supportive.
Co-workers a.k.a. customers wont' support a price increase because they, of course, would much rather pay your lower pricing.
I never take advice from anyone who doesn't either (a) own their own business, successfully or (b) understand the food industry, intimately.
Man, I woulda bet my butt it was a family member!
Family won't support a price increase because family is/are usually the worst when it comes to being supportive.
Co-workers a.k.a. customers wont' support a price increase because they, of course, would much rather pay your lower pricing.
I never take advice from anyone who doesn't either (a) own their own business, successfully or (b) understand the food industry, intimately.
My family is that way. They think $2.25 is too much for a cupcake but they will pay $4.00 for a latte which is basically coffee and a lot of milk! They always say they can go to costco or the grocery store and get them cheaper. I tell them to go right ahead because they are making a killing selling cupcakes they make out of a box! Heck if i was making my cupcakes out of a box i could sell them cheaper too. Like you I don't listen to people anymore. They have no idea about how to run a business to make a profit and know nothing of the food industry. They accept the cost of everything else going up but you should keep your prices the same and actually do them for free!
So here is the 6" cake and cupcakes I made for the event. I ended up charging $2.50/cupcake and $66.00 for the cake. Should I charge higher or lower next time? Your thoughts?
I am still very new at this. 
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