Cupcake Pricing... Is It Me?

Baking By shopdaydream Updated 7 May 2010 , 7:14pm by JohnnyCakes1966

shopdaydream Posted 29 Apr 2010 , 1:20am
post #1 of 22

Ok so I got a client that wants 150 cupcakes for her wedding, german chocolate cupcakes with purple icing and gold decorations. I am trying to get new clients so im running a special, my cupcakes go for $2.50 so I quoted her $1.75 for hers, never heard from her again... so whas it the price? am I charging way too much? icon_cry.gif

21 replies
cylstrial Posted 29 Apr 2010 , 1:34am
post #2 of 22

$1.75 for a cupcake is definitely not too much! Some people are just cheap and refuse to pay for quality. Don't be sad about it - you stuck to your guns! There will be people who will come along and pay your prices and they will pass your name along to others.

CookieMakinMomma Posted 29 Apr 2010 , 1:37am
post #3 of 22

Nope definitely not. That's half of your normal price! $1.75 per serving for a wedding is cheap even by Walmart standards! I would know, I happened to call my local WM just last week. icon_wink.gif Plus, you do gourmet flavors and specialty decorations. I personally would charge the same or a little more and I don't live in a wealthy community. It is possible that she couldn't afford it, but what she can afford should have no bearing on how much your products and time are worth to YOU. thumbs_up.gif

LindaF144a Posted 29 Apr 2010 , 2:19pm
post #4 of 22

Think of it this way - you are in sales now. You are not going to get that yes from every customer. In fact if I remember correctly 1 in 10 was a good thing. The best thing you can do is say "next" and move on.

You can't please everybody, and you shouldn't compromise on your price to get it. Once you go back, there is no going forward.

The best advice I gave my DH years ago is that he should never, never go down in salary to get the job. Stick to your amount and it will come.

It is all about attitude.

shopdaydream Posted 29 Apr 2010 , 6:14pm
post #5 of 22

Thanks I was getting a little down, people dont know how much work it takes to make these and just because they are small they think its gonna be really quick to make. Thanks again! icon_biggrin.gif

KHalstead Posted 29 Apr 2010 , 6:35pm
post #6 of 22

let me ask you this! Would you want the order if she was going to pay you only $1 each??? Probably not!!

consider it a blessing that she hasn't gotten back to you, chances are she's searching for a lower price and will wind up back with you anyhow!

jdelaney81 Posted 29 Apr 2010 , 6:44pm
post #7 of 22

If anything, cupcakes should cost more per serving than a cake. You have 300 cakes to decorate instead of 1 large cake...Just my ever so humble opinion... icon_biggrin.gif

shopdaydream Posted 1 May 2010 , 9:53pm
post #8 of 22

it just sucks that you take the time to train to get better and people just think because the grocery store has BOGO on cupcakes that they are the same thing and I should charge the same, sorry i really needed to vent! icon_mad.gif

CookieMakinMomma Posted 2 May 2010 , 6:09pm
post #9 of 22

vent away! I am afraid I will have the same problem when I start selling cupcakes. I am a very firm believer in taste quality ranking as high or higher than looks. Because of this I have put A LOT of effort into my recipes. Other than shape, I don't consider my cupcakes to be anything like the crud in walmart ($0.50 per cupcake?!? they must barely make a profit!). Add to that the fact that most of the people in my area have never even tasted a cake made outside a grocery store or a Betty Crocker box (no offense to box mixers) and you have people who believe all cakes are the same. They think gourmet is just a word you use to sound special, even though you actually offer REAL gourmet! They just can't understand the value until you stuff the dang cupcake right in their mouths (and even then...). We almost need a marketing campaign just to re-educate people. Ugh, ok I'm done venting too. Who's next? icon_biggrin.gif

Bluehue Posted 2 May 2010 , 6:41pm
post #10 of 22

Perhaps - and this is just a *perhaps* -

Sometimes when people search for a certain thing (cupcakes in this case) they set themselves a certain price range - and just sometimes they expect to pay that certain price.

Don't lower your price thinking that will clinche the deal - because *perhaps* she was actually expecting to pay more for something special and different....and perhaps she thought $1.75 was too cheap for what she hoped would be beautiful cupcakes on the day.

Lowering your price can sometimes backfire
Have different styles of cupcakes - different toppings - different flavours - decorations and have your set prices for the variety of cupcakes that you sell.

As an example -
You see 2 pairs of black shoes -
Same style -
1 pair prcied at $19.00 - the other pair priced at $75.00
The difference being - one pair is plastic - the other leather.
Not everyone wants plastic black shoes for that special occassion.
And not everybody is having to save a dollar here and there when it comes to that special occassion.

There really are people out there who appreciate all the work that goes into designing and creating cupcakes/cakes - and they are willing to pay for just that.

Just another prospective as to why some don't always order.



Bluehue.

rowingmom Posted 2 May 2010 , 6:45pm
post #11 of 22

I think people forget that custom made is in a different price bracket than off the shelf. If they want is grocery store prices, then what they see in the grocery store is what they'll get. Unfortunetly that is what they also taste!! Stick to your guns. Just make sure that you are not out of line from what other people like you are providing for price.

Ivy383 Posted 2 May 2010 , 6:57pm
post #12 of 22

I made cupcakes for my friend's daughter yesterday. (crown cupcakes in my profile pics) When I dropped off the cake and cupcakes I had a couple of mom's ask me how much I would charge for a dz cupcakes. I told them that I did not sell them that I was only doing them as a favor to my friend. One of them kept on bugging about it and I finally told her that I would do it for $20.00 a dz. She was happy about it and asked me to make 2dz of the same cupcakes for her next month. Now I regret agreeing to it! lol... People don't understand the trouble you go thru to make cupcakes. icon_smile.gif

Edit: I thought that if I told her $20.00 for 12 she would find that expensive and say no thanks...but she thought it was a good deal! I guess I was wrong. I'm just happy I don't have to worry about pricing again.

carmijok Posted 2 May 2010 , 7:01pm
post #13 of 22

Why would you charge a cheaper rate if you are doing more cupcakes? You'll be doing more work for less money. Most bakeries that sell individual cupcakes (with nothing but icing) will start at $3 and up each! If you want to know why she hasn't called back, you might give her a call and tell her you are preparing your baking schedule for the month and you need to know whether to schedule her or not. If she says no ask if there was a problem. If she says it was too expensive, well then at least you'll know. Just because one person is cheap and doesn't care about quality, doesn't mean you should lower your price! Instead of a quantity discount, why not offer an added value? Something like a simple fondant flower or other decoration or offer a specialty flavor or filling at no additional charge for the larger orders. In doing so, you're offering more for the customer without devaluing your product. icon_smile.gif

shopdaydream Posted 2 May 2010 , 8:18pm
post #14 of 22
Quote:
Quote:

Perhaps - and this is just a *perhaps* -

Sometimes when people search for a certain thing (cupcakes in this case) they set themselves a certain price range - and just sometimes they expect to pay that certain price.

Don't lower your price thinking that will clinche the deal - because *perhaps* she was actually expecting to pay more for something special and different....and perhaps she thought $1.75 was too cheap for what she hoped would be beautiful cupcakes on the day.

Lowering your price can sometimes backfire
Have different styles of cupcakes - different toppings - different flavours - decorations and have your set prices for the variety of cupcakes that you sell.

As an example -
You see 2 pairs of black shoes -
Same style -
1 pair prcied at $19.00 - the other pair priced at $75.00
The difference being - one pair is plastic - the other leather.
Not everyone wants plastic black shoes for that special occassion.
And not everybody is having to save a dollar here and there when it comes to that special occassion.

There really are people out there who appreciate all the work that goes into designing and creating cupcakes/cakes - and they are willing to pay for just that.

Just another prospective as to why some don't always order.





Oh I completely get this, She found me when I posted my add in Craigslist explaining that because i needed photos for a catalog i was doing a special on pricing just for mentioning the ad, I even redirected them to my website so that they could see my work and actuall pricing ($2.50 for each cupcake) so she knew she was getting a real good deal for the special, maybe i should have have lowered the price that much, never thought of it that way, thanks!

CookieMakinMomma Posted 3 May 2010 , 1:17am
post #15 of 22
Quote:
Originally Posted by carmijok

Why would you charge a cheaper rate if you are doing more cupcakes? You'll be doing more work for less money. Most bakeries that sell individual cupcakes (with nothing but icing) will start at $3 and up each! If you want to know why she hasn't called back, you might give her a call and tell her you are preparing your baking schedule for the month and you need to know whether to schedule her or not. If she says no ask if there was a problem. If she says it was too expensive, well then at least you'll know. Just because one person is cheap and doesn't care about quality, doesn't mean you should lower your price! Instead of a quantity discount, why not offer an added value? Something like a simple fondant flower or other decoration or offer a specialty flavor or filling at no additional charge for the larger orders. In doing so, you're offering more for the customer without devaluing your product. icon_smile.gif


I like that idea! Customers are far more likely to go for the full price if they believe they are getting a free upgrade. Heck, I do it myself! Interesting, I will have to remember this one. thumbs_up.gif

indydebi Posted 3 May 2010 , 1:43am
post #16 of 22
Quote:
Originally Posted by CookieMakinMomma

Quote:
Originally Posted by carmijok

..... Instead of a quantity discount, why not offer an added value? Something like a simple fondant flower or other decoration or offer a specialty flavor or filling at no additional charge for the larger orders. In doing so, you're offering more for the customer without devaluing your product. icon_smile.gif

I like that idea! Customers are far more likely to go for the full price if they believe they are getting a free upgrade. Heck, I do it myself! Interesting, I will have to remember this one. thumbs_up.gif


Absolutely! As I've said a number of times, the expensive marketing guy I know says, "Never discount ... ALWAYS add value instead."

Tracy7953 Posted 3 May 2010 , 1:59am
post #17 of 22

shopdaydream, I saw near the end of the thread that you found this person on Craigslist. I think that may explain it! I have used that site to buy and sell many times and have found only extreme bargain hunters there.

Melvira Posted 3 May 2010 , 2:13am
post #18 of 22

Honestly, $1.75 each is or isn't 'cheap' depending on where you live. Here my cupcakes run $1.50 each (minimum order of 12) with basic filling and swirled icing. If they want something fancier it may or may not cost more, depending on "what". So, to me, $1.75 each is not cheap. Go by what the 'going rate' is in your area.

Bunsen Posted 3 May 2010 , 2:15am
post #19 of 22

Craigslist is not the place to attract serious buyers of quality custom made cakes - it attracts crazies and people looking for free stuff! Up your prices (I agree with Bluehue - I wouldn't buy them if they were priced close to grocery prices because I would expect similar quality, I would be suspicious of the low price) and aim for the right market.

shopdaydream Posted 3 May 2010 , 2:20am
post #20 of 22

I love CC!! its great to have so many insights into this, thanks

cylstrial Posted 7 May 2010 , 6:45pm
post #21 of 22
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by CookieMakinMomma

Quote:
Originally Posted by carmijok

..... Instead of a quantity discount, why not offer an added value? Something like a simple fondant flower or other decoration or offer a specialty flavor or filling at no additional charge for the larger orders. In doing so, you're offering more for the customer without devaluing your product. icon_smile.gif

I like that idea! Customers are far more likely to go for the full price if they believe they are getting a free upgrade. Heck, I do it myself! Interesting, I will have to remember this one. thumbs_up.gif

Absolutely! As I've said a number of times, the expensive marketing guy I know says, "Never discount ... ALWAYS add value instead."




This is just great!!! icon_biggrin.gif

JohnnyCakes1966 Posted 7 May 2010 , 7:14pm
post #22 of 22

Bottom line is, just because someone has 250 friends/relatives doesn't mean they can afford a wedding reception for that many people!! People send a wedding invitation to everyone they know because they want a gift from all those people (let's be honest!), but they seem to forget that they also have to PAY FOR a PARTY for all those people. Instead of lowering your price to meet her budget, tell her to invite fewer people! If you lose the order, so be it. You'll be happier in the long run knowing you didn't work your butt off for no profit!

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