Cupcake Pricing

Baking By jeniler Updated 3 Feb 2012 , 5:47am by jason_kraft

jeniler Posted 3 Feb 2012 , 5:13am
post #1 of 2

Does anyone know how to get a copy of the cupcake pricing matrix? I am in dire need of pricing for a college course I am taking on starting a new business. I decided to start a cupcake business but I have no clue how to calculate my costs and what all goes into a cupcake shop. This is a hypothetical class but I have to be realistic. PLEASE help me.


1 reply
jason_kraft Posted 3 Feb 2012 , 5:47am
post #2 of 2

It shouldn't be too hard to come up with an estimate for pricing cupcakes (or any product). To make the numbers easier to work with you can look at the cost for a single batch (10 dozen as an example): add up the ingredient costs, labor costs (twice minimum wage would be a good fully loaded estimate), and overhead. For the overhead you would work backwards from monthly/annual costs and assume a specific sales volume (i.e. 1 batch per day) to determine the overhead contribution per batch. Then just add a 15-20% profit margin and you have your price.

The idea behind a business class is to enable you to create your own pricing matrix, copying an existing one probably won't help in the long run.

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