I have been asked to put a quote together for someone interested in 50 dozen cupcakes frosted in buttercream. I would normally charge $2/cupcake, but I feel I should give her some kind of break for ordering 600 cupcakes. What would you charge for 600 cupcakes?
sorry but $2.00 each...It costs me time and money to make them..so why would I take a loss...JMO...
If you want throw a smaller cake or something in for free but I wouldn't discount...
If you were routinely mass-producing a large quantity of cupcakes on a regular basis a discount might be in order, but for small batch bakers a volume discount probably doesn't make sense.
I would charge my per price cupcake, and multiply it by 600. Simple.
Just because there are 600 cupcakes, it doesn't mean I am faster per cupcake than if I was only doing 1 dozen. I mean, if it takes me 30 seconds to decorate a cupcake, it will take me 18000 seconds (5 hours, non stop) to do 600.
Not to mention of course the time it takes to mix the batter and bake.
No discount, unless they are ordering 600 a week, like Jason said.
Yeah, The only reason I would give a discount is when it is for a charity.
Wow, guess I am the odd one out. I would offer a discount.
In my mind, even though it is not a "weekly" order, it could bring in quite a bit of potential business...I know, I know "could & potential" are the key words here, but that is not money I would refuse.
wow..i personally would have given the discount BUT now after reading others post I have changed my position on "discounts". You don't get a discount on lost sleep when you stay up to 3am making cupcakes! The client can get a discount on their next order when they refer a solid customer.
Yes, I agree - no discount on a one-off order.
Discounts are for people who order a specific, significant quantity order from you on a set basis. In that case, because you know how much and when well in advance, you can afford to buy larger quantities of ingredients etc and thereby pass on a small saving to the customer.
If you feel you must appear grateful for this order, perhaps offer them a loyalty card with 2 boxes ticked off for this order?
A discount is given when the order is large enough AND CONSISTENT ENOUGH to generate cost savings to you, which you will pass on to the client.
Increased productivity saves your labor costs ..... if you will be baking these in a standard home oven, there is no way for you to increase yoru productivity because it will take the same amount of time to bake a max of (let's say) 24 cupcakes in a baking batch. But if you have a double comm'l oven, then you can now utilize ALL of the available baking space and bake them faster, such as 250 in a baking batch.
You give discounts when the order actually saves you money, not just beause its a big order.
I agree with everyone above. You would just be losing money by giving a discount. I was speaking with another cake decorator in my town last year about cupcakes and she starting telling me a story about a client that kept changing the amount of cupcakes she wanted for her wedding. At first she wanted 200. So the decorator was going to charge her $1/cupcake. Then it was 100, so she changed it to $1.50/cupcakes. Afterwards I just kept thinking, why was she giving the customer such a discount? Twice the amount of cupcakes means twice the amount of work.
The company probably is not expecting a discount. If they were, it would have been put out for bid.