Monogram Cupcake Pricing Help

Baking By heathersmiles25 Updated 5 Jul 2011 , 3:45pm by OhMyGanache

heathersmiles25 Posted 5 Jul 2011 , 2:36pm
post #1 of 3

I have only been decorating cakes for money for about a year....I have been asked by a friend to make 60 cupcakes with a circular monogram. I have not make many cupcakes and have no idea how much i should charge. Any help would be greatly appreciated.

2 replies
jason_kraft Posted 5 Jul 2011 , 3:33pm
post #2 of 3

To determine pricing you will first need to look at all your costs, including ingredients, labor (# of hours needed to fill the order * your hourly wage), and overhead on a per-order basis (insurance, licensing fees, etc). Once you have a good idea what your cost will be for an order, add another 20-30% for your profit margin.

You may also want to check out the laws in your area...some states have a cottage food law that allows you to sell food made from home, while others require a separate licensed and inspected commercial kitchen before you can legally sell products. You'll also want to look into getting some business liability insurance to protect yourself in the off chance that you face a lawsuit.

We would probably charge $4 each for cupcakes decorated with a fondant monogram. Our business is based in a state (CA) that requires a commercial kitchen, so that price includes the kitchen rental fee and a share of the added overhead for inspection fees. In a state with a cottage food law the price would probably be lower.

OhMyGanache Posted 5 Jul 2011 , 3:45pm
post #3 of 3

Cupcakes can range in price from $1 each on the low end, to as much as $3-4 apiece. I think the best starting point is to determine what the market in your area will bear.

Determining costs and overhead, etc. is a bit much for a simple cupcake order. If you were going to be starting a business or opening shop, then all of that is relevant, but just doing a cupcake order for a friend - figuring out your overhead etc. would be more work than it's worth and there's no point in doing such calculations for a single order.

If similar cupcakes in your area sell for $2 apiece, then price yours somewhere in that area.

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