Hard Business

Baking By nickih717 Updated 18 Jun 2011 , 7:16am by Paperfishies

nickih717 Posted 13 Jun 2011 , 3:05am
post #1 of 14

Cupcakes are cute and yummy! Now trying to sell them is BRUTAL there is so much competition and how do you convince ppl to buy your $3 cupcakes and not the local grocery stores???Customers dont realize the money that goes into cupcakes(ingredients, time ins. . .so on) I think about cupcakes about 20 hrs a day if not more it has took over ! What im really trying to say is my hat goes off to all those cupcakeries out there. I guess my choices are to keep cupcaking or find something else that will make me the amount of money i want to make. . . . icon_cry.gif

13 replies
carmijok Posted 13 Jun 2011 , 3:37am
post #2 of 14

Well, taste is one thing. Creating unique flavors is another, customizing with fondant accents, ganache, liners and wraps all are reasons people pay more for cupcakes at shops. If I want to treat myself to a cupcake, I'm not going to the grocery store to buy their cheap tasting product where the only decorating they do consists of icing color, sprinkles and plastic decorations.
If you don't think your cupcakes are worth the cost, then no one else will either. If you have people who say they're too high then they are not your customers. Market to those who know the difference between a Ford Pinto and a Mercedes.

Paperfishies Posted 13 Jun 2011 , 4:17am
post #3 of 14

I find a reason to take cupcakes any where and every where...Bridal shower? I will bring the cake/cupcakes and they will not only be delicious but they will be beautiful...I send my husband to work with cupcakes. I drop cupcakes off at my dad's company. I post pictures on facebook of my latest creations.

I hosted a bridal shower last weekend and servers at the restaurant were coming over to look at the cupcakes and to get my info.

nickih717 Posted 13 Jun 2011 , 2:49pm
post #4 of 14

my main thing right now is taste and prefecting that perfect reciepe. CC has taught me alot its a gold mine for newbies. But i also send cupcakes to my bf work and take them everywhere also just to see what ppl think. And your right i need to market to ppl that want the real deal and not a chemical filled treat. This isnt an overnight business its gonna take a while thumbs_up.gif

amaryllis756 Posted 17 Jun 2011 , 10:24am
post #5 of 14

I really don't know where you are located, because I forgot to look. I don't mean to be critical or come across as being snotty. But I know what goes into making cupcakes, I have a business of my own. I think $3 is outrageous for a cupcake. I wouldn't pay that much for one. Mine are filled, decorated, with an edible decoration, and I charge about 1/2 of that price. I do sell pretty well. I do not have a store front, I bake from my home, and that maybe why I can make a profit at that price. My cupcakes cost to make approx. 50-60 cents to make each and think that is a good percentage of profit. People are really excited about my cupcakes. I am now getting wedding, showers, and birthday orders. Business is looking up for me. (I am only in my first year.) And believe me, it does get discouraging at times. But I am now getting my "foot" in the door and things are looking brighter.

MikeRowesHunny Posted 17 Jun 2011 , 10:50am
post #6 of 14
Quote:
Originally Posted by amaryllis756

I really don't know where you are located, because I forgot to look. I don't mean to be critical or come across as being snotty. But I know what goes into making cupcakes, I have a business of my own. I think $3 is outrageous for a cupcake. I wouldn't pay that much for one. Mine are filled, decorated, with an edible decoration, and I charge about 1/2 of that price. I do sell pretty well. I do not have a store front, I bake from my home, and that maybe why I can make a profit at that price. My cupcakes cost to make approx. 50-60 cents to make each and think that is a good percentage of profit. People are really excited about my cupcakes. I am now getting wedding, showers, and birthday orders. Business is looking up for me. (I am only in my first year.) And believe me, it does get discouraging at times. But I am now getting my "foot" in the door and things are looking brighter.




You can't generalise like that. Maybe the OP is offering a product containing much more expensive ingredients than you use (scratch recipes/ all butter buttercream/ organic etc). I know that my cheapest cupcake, plainly swirled with real buttercream cost me $1.70 to make, some cost up to $2.50!!! Start adding decorations and well... My cupcakes are slightly larger than average though (my liners are 1 1/2in in depth).

Karadactyl Posted 17 Jun 2011 , 11:47am
post #7 of 14
Quote:
Originally Posted by MikeRowesHunny

Quote:
Originally Posted by amaryllis756

I really don't know where you are located, because I forgot to look. I don't mean to be critical or come across as being snotty. But I know what goes into making cupcakes, I have a business of my own. I think $3 is outrageous for a cupcake. I wouldn't pay that much for one. Mine are filled, decorated, with an edible decoration, and I charge about 1/2 of that price. I do sell pretty well. I do not have a store front, I bake from my home, and that maybe why I can make a profit at that price. My cupcakes cost to make approx. 50-60 cents to make each and think that is a good percentage of profit. People are really excited about my cupcakes. I am now getting wedding, showers, and birthday orders. Business is looking up for me. (I am only in my first year.) And believe me, it does get discouraging at times. But I am now getting my "foot" in the door and things are looking brighter.



You can't generalise like that. Maybe the OP is offering a product containing much more expensive ingredients than you use (scratch recipes/ all butter buttercream/ organic etc). I know that my cheapest cupcake, plainly swirled with real buttercream cost me $1.70 to make, some cost up to $2.50!!! Start adding decorations and well... My cupcakes are slightly larger than average though (my liners are 1 1/2in in depth).




I agree. I bake and sell my cupcakes at a local deli in my town and charge $2.75 for a simple swirl, no filling and only sprinkles as decoration. Where I live, that's the normal going price of a cupcake, though mine are a bit bigger. Where you're located is a huge part of how much you sell your goods for.

Sangriacupcake Posted 17 Jun 2011 , 11:51am
post #8 of 14
Quote:
Originally Posted by amaryllis756

I really don't know where you are located, because I forgot to look. I don't mean to be critical or come across as being snotty. But I know what goes into making cupcakes, I have a business of my own. I think $3 is outrageous for a cupcake. I wouldn't pay that much for one. Mine are filled, decorated, with an edible decoration, and I charge about 1/2 of that price. I do sell pretty well. I do not have a store front, I bake from my home, and that maybe why I can make a profit at that price. My cupcakes cost to make approx. 50-60 cents to make each and think that is a good percentage of profit. People are really excited about my cupcakes. I am now getting wedding, showers, and birthday orders. Business is looking up for me. (I am only in my first year.) And believe me, it does get discouraging at times. But I am now getting my "foot" in the door and things are looking brighter.




Prices vary greatly by location. In the Chicago area, cupcakes shops--no cottage bakers here-- easily get $3 for for their standard flavors. Custom cupcakes (for weddings, parties) command huge prices here...$6 and up.

dreamacres Posted 17 Jun 2011 , 12:15pm
post #9 of 14

are you sure you are including all your expenses. I recently purchased cakeboss software and was shocked at the numbers. I felt my pricing was good but when I put information in the program I kept going back looking for the error I had made because the profit was so much less then I thought. Found myself going back into the software and cutting hours just to make it look like more profit was there. One example was a 2 tier 6 and 10, I input 1 hour for baking, no time for anything else, my profit was $29.00. That did not include any time for decorating, and nothing for all the investment in tools that were used. You may want to take another look at your actual cost. Little things do add up.

ccenter1 Posted 17 Jun 2011 , 9:49pm
post #10 of 14

I know what you mean. I opened a cake shop in a town where everything baked is grocery store quality and cheap. I started out as a fondant cake shop that made 4 flavors of cupcakes a day and now i still do cakes but cupcakes carry my business. And the hardest part was getting people to pay for a good product. I've heard "i can get these for half the amount at a grocery store" so many times i want to scream. You just have to stand your ground and cater to the audience you want in your shop. The people that appreciate fresh quality cupcakes will pay $3 trust me!

cbiscuit85 Posted 17 Jun 2011 , 11:00pm
post #11 of 14
Quote:
Originally Posted by ccenter1

I know what you mean. I opened a cake shop in a town where everything baked is grocery store quality and cheap. I started out as a fondant cake shop that made 4 flavors of cupcakes a day and now i still do cakes but cupcakes carry my business. And the hardest part was getting people to pay for a good product. I've heard "i can get these for half the amount at a grocery store" so many times i want to scream. You just have to stand your ground and cater to the audience you want in your shop. The people that appreciate fresh quality cupcakes will pay $3 trust me!




I totally agree. There are people who only care about cost, and those aren't the kind of people who will pay $3 for a cupcake. Those who care about the taste and quality of ingredients, and/or decorations will pay for it!

There is a local cupcakery here that charges $2.50+ per cupcake. I think they taste artificial and don't have that much decoration, but people still pay that much for them.

Jmlpitbull Posted 17 Jun 2011 , 11:55pm
post #12 of 14

In my bakery, cupcakes are $3.75 each. They are jumbo cupcakes and are gourmet flavors. Sure, some people think that's too much and won't buy one, but for the most part, they are our most popular item in the bakery. The presentation plays a huge part in what people will perceive as "worth it". If it lOoks expensive and inviting, they will be more apt to open their wallet.

scp1127 Posted 18 Jun 2011 , 4:36am
post #13 of 14

People pay top dollar for quality every day all day long. If you don't know know this market exists, then of course you can't sell to it. There are people who would not even consider buying a cupcake that was under $3.00. My ingredient prices are so high, I couldn't consider selling for less. I do have a few unfilled for $2.50.

Paperfishies Posted 18 Jun 2011 , 7:16am
post #14 of 14

Where I live cupcakes from specialty shops cost anywhere from $3-$5 each. People will pay it. It's a small induldgence.

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