I need help.
I have been doing a lot of cupcake and cake orders lately. I'm stuck on what I should be charging. I currently charge $20 per dozen for regular size and $20 per 2 dozen minis. I also charge an extra $5 per dozen for fondant decorations. Is that fair or should I be charging more? What does everyone else charge their customers?
Also... I've been asked to do an order for 50-60 chocolate dipped strawberries. I have no idea what I should be charging.
Any help would greatly be appreciated!
Your price should be primarily determined by your costs instead of what others are charging -- your costs include ingredients, labor (your hourly wage), and overhead on a per-order basis (such as insurance). Add up these costs for a dozen cupcakes, add 20-30% for a profit margin, and you'll have your target price. You can then do a sanity check against your competition to see if that price makes sense in your market.
This formula can be used for any product, including cupcakes, add-on decorations, and chocolate-dipped strawberries.
We are located in CA (which requires a commercial kitchen to sell food) and we charge a minimum of $30/dozen for cupcakes. Fondant decorations are usually $10-30 extra per dozen (or more) depending on complexity.