Pricing Issue

Baking By landylou Updated 2 Jul 2012 , 2:10pm by CupcakeQT82

landylou Posted 23 Jun 2012 , 4:42am
post #1 of 5

I have an order for 300 Irish Car Bomb Cupcakes for a wedding. This is the first I've even heard of them and I have made them already to allow for trial and error. These are made from scratch and I can tell you I've never had such wonderful goodness.
I've spent a total of $110 in ingredients alone. There is Guiness Stout in the cupcake, Irish whisky in the chocolate filling, and Baily's in the icing. Takes me approximately 3 hrs just to make 36. My gut tells me I should be charging not less than $3 for each cupcake. That is a total of $900. A friend who caters (but does not do deserts) says I should charge about $400 of which I believe to be WAY to low a price. In local bakeries you can't find a regular cupcake for less than $2.50. Anyone have any suggestions on what they would charge?

4 replies
jason_kraft Posted 23 Jun 2012 , 6:05am
post #2 of 5

You need to look at your costs first before you look at what other people charge. Assuming you pay yourself $10/hour, you are looking at 25 hours * $10 = $250 for labor alone. Add ingredients, you're at $360. Assume you have $40/order in overhead (insurance, license fees, utilities, etc.) to make it $400. If you set your wage at $15/hour, your cost would be $525.

Make sure that 3 hours/36 figure is accurate and includes prep, cleanup, packaging, etc., and that you include your correct overhead figure.

Now that you know your cost, you can look at the market price for cupcakes in your area to help determine how big your profit margin will be, just make sure not to go below your cost.

kelleym Posted 23 Jun 2012 , 4:02pm
post #3 of 5
Quote:
Originally Posted by landylou

I have an order for 300 Irish Car Bomb Cupcakes for a wedding. This is the first I've even heard of them and I have made them already to allow for trial and error. These are made from scratch and I can tell you I've never had such wonderful goodness.
I've spent a total of $110 in ingredients alone. There is Guiness Stout in the cupcake, Irish whisky in the chocolate filling, and Baily's in the icing. Takes me approximately 3 hrs just to make 36. My gut tells me I should be charging not less than $3 for each cupcake. That is a total of $900. A friend who caters (but does not do deserts) says I should charge about $400 of which I believe to be WAY to low a price. In local bakeries you can't find a regular cupcake for less than $2.50. Anyone have any suggestions on what they would charge?



Have you already bought the ingredients without agreeing on a price with the customer? Sorry, I'm a little lost. icon_sad.gif

There is an article on pricing in my signature that many people find helpful.

BakingIrene Posted 23 Jun 2012 , 5:35pm
post #4 of 5
Quote:
Quote:


Have you already bought the ingredients without agreeing on a price with the customer? Sorry, I'm a little lost. icon_sad.gif

There is an article on pricing in my signature that many people find helpful.




I think she means that she has leftover Irish whisky and Baileys because the test batch would only have used a few ounces of each.

OK so here's my take on the price. Cakes with alcohol are premium desserts and you should expect to pay more. Local market $2.50 each, your local price of $3.00 is right on.

You can freeze these after you have added the ganache and take your time. Then the final icing can be added the day before.

Your advice from the caterer works out to $1.33 a cupcake??? homemade with booze??? NOOOO

CupcakeQT82 Posted 2 Jul 2012 , 2:10pm
post #5 of 5

Sorry but the bride should know if it's got alcohol it's pricey. If it costs more to make it will cost her more to buy!

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