A friend of mine wants to buy baskets of cookies from me. She wants to have them for Auction gifts. She wants two baskets. One of simple sugar cookies with chocolate chip cookies. For the other basket she wants sugar cookies with icing decorating them and lettering. I am stumped on how to charge her. She is my friend, but she DOES understand that it would be a business transaction and she is not expecting special discounts or treatment, other than the product be good! Do I charge PER cookie and if so, do I charge MORE for the decorated cookies as they take more time and detail?? I REALLY need some guidance and she and I are meeting this afternoon!!! HELP!!!! Anyone who can help me out I REALLY appreciate it so much! THANK YOU!!!!
I have read a number of posts on this and most of them focus on the labor and cost for you. I think that is all well and good in determining what you can make from selling your cookies but I think pricing is more complex than that. Price is a function of what people are willing to pay and what you are willing to sell for. I have seen posts on here where people are charging $25 for a dozen to $8 a cookie for the hand-decorated cookies. My pricing is somewhere in the middle of that range. I look at competing products in my market and that is not only cookies but other substitute products like cupcakes. I look online to see what similar cookies online cost and that gives me lots of price points. I then compare my product to theirs and of course it is usually better for one reason or another - no shipping, fresher ingredients, more beautiful design, lack of similar product available, etc. and figure out a price from that. I think most women are afraid to ask for the full value of what their work is worth. If it helps maybe you should put together a price list with some products and pricing and give her some options to pick from. If she has a budget or is price sensitive she will choose what she is willing to pay.
I read somewhere about charging $1 per inch for sugar cookies.
Its hard to figure out prices - and I just finally came to a comfortable price for my cakes - where i'm not loosing money anymore.
For cookies - I charge per cookie - Fondant sugar cookies is what I do - and depending on the size and decorations I charge per cookie.
I also look at it as if I have no product on hand - so I will never lose money when pricing it.
I've been having a hard time when it comes to family and friends - I am starting to charge only for product... but I am still on the fence about it. Some people take it personal when you don't give a discount
There are many threads and theories on this. In the end I purchased cakeboss ( which I love love love) and did it this way.
All ingredients, bags, labels, colours, shimmers, ribbon, EVERYTHING used plus electricity per cookie, then I nominated an hourly rate that I would like to receive. Then add ons of packaging which cakeboss then divides amonst the cookies etc.
In a batch that makes 35 cookies, the cost to me is approx $18 ( inc all above) then I know that each cookie costs me say 70 cents to make, plus my time. so if I want to be very generous to a family member I will charge min $1 per cookie, but always aim to sell my others for $2.50 each.
(depending on level of difficulty and size etc) I know i have covered my costs at least. or I do a wholesale price where I make half the $ per hour and we are normally all happy with that.
As we all know time is very precious and there is never enough hours in a day !