menrb827 Posted 22 Apr 2013 , 6:18pm
post #1 of

Looking for some cash on the side by selling Sugar Cookies.. Here is a price that I am thinking. Could I be overpaying or underpaying with these prices? Let me know!

 

Plain and/or sprinkles - $2.00 for 15

Chocolate dipped/drizzled - $4.00 for 15

Decorated with Royal Icing - $10.00 for 15

10 replies
jason_kraft Posted 22 Apr 2013 , 6:30pm
post #2 of

AYou need to factor in the costs of ingredients, labor (this will be a big one for decorated cookies) and overhead (since you will need to contact your county health dept and obtain a license for a cottage food business). At your quoted prices I would be surprised if you were able to pay yourself more than $1/hour with a profit margin of zero.

Our cookie prices start at $1 each (for very basic cookies) and can go as high as $4-5 each depending on the design.

liz at sugar Posted 22 Apr 2013 , 6:50pm
post #3 of
Quote:
Originally Posted by jason_kraft 
At your quoted prices I would be surprised if you were able to pay yourself more than $1/hour with a profit margin of zero.
 

 

Jason is right.  You won't be making any money.  And $2.00 for 15 cookies?  Even if you mean tiny spritz cookies, that doesn't sound like it will even cover your costs.

 

Do a little math on what the ingredients cost that go into your recipe, and then see if those prices seem realistic.

 

Liz

BakerMom52 Posted 23 Apr 2013 , 12:44pm
post #4 of

You are working for free and giving these cookies away. The prices you are asking will pay for your gas only. Think about using the trifecta pricing system:

1. Ingredient Costs

2. Labor Costs

3. Overhead costs

So, for example, let's use $1 for each of those costs. That equals $3, multiply that by 6 and you get $18. The "multiply by 6" concept is used in restaurants nationwide as a standard for pricing items on their menu. You probably do not have a restaurant, but this model is a good tool to use for pricing of food.

When you get more orders, this will also help you in the long run for price consistency.

Good Luck...sound like you are going to have fun with these cookies!

GeminiRJ Posted 23 Apr 2013 , 5:46pm
post #5 of

Your prices seem really low. Have you done research into what the pricing is in your area for similar products? Even the mass produced cookies at my local grocery store would cost more than what you want to charge!

bigdad Posted 23 Apr 2013 , 7:05pm
post #6 of

Yes call around town to the other bakeries and see what there prices are, then you will know what to charge. Even stop by other bake shops and see what they have and sell then you will know what you need to do they don't have to know you are checking them out. GOOD LUCK
 

nycbake Posted 2 May 2013 , 1:14am
post #7 of

Please don't undercharge!  This is a constant issue with 'hobby bakers' and it is seriously undervaluing our industry.  Please do homework about how much it REALLY costs to do business [and that includes ACTUALLY PAYING YOURSELF AT LEAST MINIMUM WAGE PER HOUR OF LABOR] ... the advice above by the other contributors is great. Good Luck ... and get paid what you really deserve to be paid .. decorated cookies SHOULD cost more than cupcakes!
 

GeminiRJ Posted 2 May 2013 , 5:33pm
post #8 of
Quote:
Originally Posted by nycbake 

Good Luck ... and get paid what you really deserve to be paid .. decorated cookies SHOULD cost more than cupcakes!
 

How wonderful to know that there is someone else out there who thinks decorated cookies should cost more than cupcakes! I'm constantly amazed at people who plunk down $3 for a simply decorated cupcake (just a swirl of icing...no decorations) yet stare at me in horror when I want to be paid $2 for a nicely decorated 3"-4" cookie. While I'm not begruding the cupcake decorator, I'd love to not have to justify a similar price for a cookie that took 15 minutes to decorate compared to the one minute cupcake.

MimiFix Posted 2 May 2013 , 7:22pm
post #9 of
Quote:
Originally Posted by GeminiRJ 

I'm constantly amazed at people who plunk down $3 for a simply decorated cupcake (just a swirl of icing...no decorations) yet stare at me in horror when I want to be paid $2 for a nicely decorated 3"-4" cookie.

For consumers who know little about bakery products, they might be judging value based on size. So a consumer looks at the larger cupcake and thinks it's worth more than a comparatively thin cookie. They have no understanding about what goes into producing each of those products. 

GeminiRJ Posted 3 May 2013 , 3:59pm
Quote:
Originally Posted by MimiFix 

For consumers who know little about bakery products, they might be judging value based on size. So a consumer looks at the larger cupcake and thinks it's worth more than a comparatively thin cookie. They have no understanding about what goes into producing each of those products. 

 

I can see your point. It doesn't make it any less frustrating, but a good observation by you!

NCYCKS Posted 24 Sep 2013 , 2:26am

AWhen I first started charging, I looked at pricing all over my area and I googled it like crazy. The general idea I got was $1 per inch...but that is the MINIMUM. Most cookies are 2"-4" and extra designs should be charged extra. Your time and talent is what people are paying for! Good luck and don't undervalue yourself! I had a hard time in the beginning but soon realized people are willing to pay for delicious custom designed baked goods! As they should:)

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