Ok so I was asked to make cupcakes for my boss's daughter. She asked to have four flavors to test first and then decide. I gave her a Butterfinger cupcake ( it was chocolate cupcake with carmel filling, buttercream frosting with butterfinger mixed in) then a Snickers cupcake ( it was chocolate cake with snicker pieces and carmel in the middle, with carmel buttercream and snickers as a garnish) then a Key Lime Pie cupcake ( it was vanilla cupcake with a gram cracker bottom with Key lime filling, with lime buttercream) and the last one was a Strawberry shortcake kind of cupcake ( it was vanilla cupcake with a whipped cream with strawberries in the middle, cream cheese frosting with strawberries on top).
In the begining she agreeed to pay for all the supplies, the testers and the cupcakes she choose. She asked for the Key Lime Pie, Strawberry Shortcake, and the Snickers cupcake. Supplies cost me $100 dollars for the testers (I gave her three of each kind) and the cupcakes she wants. I was told to charge $30 to $35 a dozen and then $2.50 to $3.00 per tester cupcake, and then to add on for time to bake them.
Is that a good price to charge?? Or what should I be charging???? Please Help ME!!!
To set a price you'll want to take your total cost including ingredients, labor (the # of hours needed to complete the order * your hourly wage), and overhead on a per-order basis (insurance, license fees, etc.), then add 20-30% for your profit margin.
You also might want to look into the laws in your state, some states require a licensed and inspected commercial kitchen in order to legally accept money for food products.
I would think the $3 per cupcake would include labor, overhead, ingredients etc. but you'll need to figure this out yourself based on your recipes. Where I live, I have to rent a kitchen by the hour. I sold cupcakes at a market yesterday & sold just under 100 at $4 each (discounts for multiples). This sounds like I would've made a lot, but actually including all of the costs, I didn't even make enough to pay myself a decent wage. I want to be able to pay myself what I deserve - make sure you don't undercharge. But I would say ususally $3 would be a pretty fair price (I live in New Zealand so the ingredient prices are way higher over here & our dollar is different).
hey babyblushes, i don,t see in your post that you say you are licensed or not. that is ok with me, it is none of my business. You are just asking us to help you with this pricing. I think that at least $3.50 a cupcake sounds like a good price. I have sold cupcakes for that and the client was very thankful, because it was a great cupcake. your cupcakes sound so delicious and worth every penny.
As icer101 said, I think your price sounds like a good price. I don't know where you are but that's none of my business either and you shouldn't tell us because in this forum, sometimes it's better to remain anonymous.
If that's what cupcakes go by you, then by all means, charge that. You just have to make sure it's a comparable price to the ones people sell around you, so that you don't undercharge.