Should the price of a cupcake decrease because it's made with a boxed cake mix? Does it even matter? I know it takes more time to measure ingredients when baking from scratch so does that mean it should cost more to buy a "made from scratch" cupcake?
I wonder because there are two cupcake shops near by and one sells scratch cupcakes while the other sells boxed mix cupcakes but both charge about the same price.
IMO it doesn't matter, price should be based on both cost and market demand, and there isn't a significant cost differential between mix and scratch. At lower volumes baking from a mix is a little cheaper, while at higher volumes scratch baking is cheaper, but not by enough to make a big difference.
Price has nothing to do with profitability. That is in your business plan.
My scratch cupcakes are close to market prices, just slightly above. It is all in how you structure your overall business. Right now I own and have no bills on my commercial kitchen, but that did not factor into my pricicng because cash had to be used to build it. Plus I will have a retail shop in the next few months and my prices will not change.
My cakes are substantially higher than market prices. I sell very few cupcakes and few sheet cakes, so for these two mainstream items, I have chosen to be more in line with market prices. My minimum is 12 cupcakes, half of a 9 inch cake recipe. The labor is a little more when you add homemade fillings and European buttercreams. But again, thuis is a small part of my business. I have 9 inch undecorated homestyle cakes for as much as $90.00. My eight sticky buns, my best seller, are $39.00. This type of gourmet cake and dessert is my niche market.