Need Advice On Possible Business Opportunity (Cupcakes)

Business By ssayres Updated 6 Nov 2009 , 5:50am by -Tubbs

ssayres Posted 5 Nov 2009 , 8:54pm
post #1 of 14

Just found this web-site!! Was hoping for some help! I have been on this cupcake craze...trying new recipes sharing and giving them away to anyone I can. A friend of mine at work loves them, told her family member about them who works at a floral shop. She mentioned to her boss about cupcakes with flower orders.

Went in and talked with her just a few days ago, she already has two orders for me this weekend. I bake from scratch. The flower shop owner said I wouldn't be able to make any money that way. So I bought box mixes and made all of the frositngs frrom scratch. Took her samples yesterday she loved them and said "Box cake it is!"

My question is I have no idea what to charge. She says I have to start low we can always raise the price later also she says whatever I charge to her she is going to double. So my one dozen I have going out tomorrow, (just threw a price out there of $20 on such short notice) she is selling for $40.

I'm not out to make a fortune, but I wanted to charge maybe $25 a dozen and she said this isn't retail anymore, it is wholesale. I really want to do this so I am afraid on one hand to push the price, but I am not getting any breaks on my supplies. I am even doing fillings inside the cupcakes. She wants a definite price sheet tomorrow, this is all happening very quickly. I just spoke with her for the first time on Monday. I am glad I stumbled upon this site. Hopefully someone may be able to offer a few suggestions.

Thanks so much!!

13 replies
Ro40 Posted 5 Nov 2009 , 9:05pm
post #2 of 14

This is honestly why I don't do go out and seek any wholesale orders. There isn't a large profit margin on a cupcake and you have to sell it too low for them to turn around and make money. I don't think it is worth it. I think you are better off selling them to the customer directly.

CbyA Posted 5 Nov 2009 , 9:07pm
post #3 of 14

WWWOOOOOWWWWWWWWW 40.00 dlls p/dozen??? I think that's a lot. If you can get 20-25 dlls for YOU per a cupcakes dozen it is fine, but her??? I think it is to much what she is getting from the cuppies....I don't know, let's see what other people have to say...

Mike1394 Posted 5 Nov 2009 , 9:09pm
post #4 of 14

Tell the lady YOUR price, and if she doesn't want them to bad. Tell her when she starts to order 10,000 a month she can dictate what price she buys them at.


LaBellaFlor Posted 5 Nov 2009 , 9:12pm
post #5 of 14

So my niece is looking at photos and I see this. Being that I'm a recovering addict, I peak anyway.

This business situation is absolutely ridiculous!!!!!! YOU choose your price, not the florist. YOU are not a wholesaler, she is full of crap!!! She is trying to get a cheap price. By the way a lot of people bake from scratch (myself included) and make profits. YOU DO NOT start out with low prices, cause it will be very difficult to raise them! PERIOD. Sorry for being so admant, but I hear you about to be taken advantage of. By the way the average cost for a cupcake is $3.00-5.00. You sell at your regular price, she can sell them for what ever she wants after that. That's usually how that works. Think about it. You are going to sell her a dozen for $20 & she will sell for $40. Home much of a profit will you actually make after you matieral cost, labor cost (you don't want to get paid), and your utility cost, etc., etc. Are you charging her a delivery fee? Are you buying all your ingredients at a wholesale cost & therefore can sell at a wholesale cost? You really need to think about this.

Mike1394 Posted 5 Nov 2009 , 9:16pm
post #6 of 14

'bout time icon_biggrin.gif

LaBellaFlor Posted 5 Nov 2009 , 9:16pm
post #7 of 14

By the way I have paid $36 for a doz. cupcakes, so yes, you can get $40 for a dozen.

jojo0676 Posted 5 Nov 2009 , 9:18pm
post #8 of 14

Another thing to think about is licensing. Are you allowed to sell baked goods that are made in your home without an inspection and/or license. If someone gets sick from these cupcakes, the florist isn't going to take the heat for it.

LaBellaFlor Posted 5 Nov 2009 , 9:18pm
post #9 of 14
Originally Posted by Mike1394

'bout time icon_biggrin.gif

LOL! I should kick my niece's butt, but since she's getting married I'll excuse her. But this post was too much for this addict! icon_twisted.gif

Mensch Posted 6 Nov 2009 , 5:25am
post #10 of 14

Good grief. I want to slap the OP.

This gal is bullsh*ttin' you. Wholesale is NOT two dozen orders a week, it is twelve dozen a day.

Don't let other people set your prices. Are you legal, BTW?

-Tubbs Posted 6 Nov 2009 , 5:31am
post #11 of 14

Well, assuming you are a licenced and legal business, you must not let your customer (the florist) dictate your terms, prices, and especially not your methods (really, telling you to do boxed mixes when you prefer scratch? That's just RUDE, in my opinion, and totally undermining the value of your product).

Do a quick calculation and work out how much it costs you, including your TIME to make a dozen cupcakes (and what do you do with the rest, because all recipes make more than that...) Wholesale is just not the way to go for a small business. You need to be going direct to your end-customers. FWIW, I charge $2.25 for a basic cupcake (not filled), with a minimum order of 2 dozen, so I do think $40 for a dozen is quite high.

* Waving to Bella* Welcome back. icon_smile.gif

CakeDiva73 Posted 6 Nov 2009 , 5:40am
post #12 of 14
Originally Posted by Mensch

Good grief. I want to slap the OP.

This gal is bullsh*ttin' you. Wholesale is NOT two dozen orders a week, it is twelve dozen a day.

Don't let other people set your prices. Are you legal, BTW?

I am wishing Mensch would have come along and SLAPPED me months ago icon_smile.gif She could have saved me a whoooole lot of drama, stress and klung. This sounds frighteningly familiar to my cafe lady. I am telling you she said the EXACT same thing! And it ended very, very badly. Don't do this to yourself.

She also tried to convince me that since I was selling to HER and SHE expected to double her money, I was, no. Wholesale is when you are selling (and baking and buying ingredients) in bulk.

Wholesale is not when some vendor wants to make the profit off your product instead of you. PM if you ever want more info. I'm not trying to be negative about what must be a very exciting prospect but those are all red flags. You might end up very bitter.

Vendors can sell your product for whatever they want to, so long as YOU get to set the price they pay you. Once the vendor starts tinkering with what you get, things tend to go south rather quickly.

LaBellaFlor Posted 6 Nov 2009 , 5:43am
post #13 of 14

Hi Tubbs! I still miss your other avatar. icon_sad.gif

-Tubbs Posted 6 Nov 2009 , 5:50am
post #14 of 14

Aww, thanks Bella. Here s/he is, just for you icon_biggrin.gif

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