My fathers friend owns a restaurant here on Long Island and he sometimes has me do his cupcake orders but he always invoices the customer and then pays me. This time he sent me the client's information and wants me to handle the pricing but I'm terrible at this and need help! Last time he paid me $3each for cupcakes decorated with bc flowers but I'm not confident enough to ask someone to pay that much. What would you ask someone for these cupcakes? PS. she wants 39vanilla, 13chocolate and 13red velvet all topped with buttercream decorations.
ACheck out the Pricing Formula link in my signature below. If you aren't operating out of the restaurant's kitchen you should make sure you are compliant with local food safety laws, since in some areas you need a licensed and inspected commercial kitchen before selling food.
If the restaurant is paying you $3 each for cupcakes, they are selling them to the customer at a markup (probably around $4 each) so there's no reason not to be confident. If you price under $3 each you will probably be undercutting the market, and you really don't want to do that.
There is quite a bit of detail on your cupcakes! Be confident! Trust your father's friend who owns the restaurant. He's aware of the market value and is probably aware of what people will pay!
Obviously the customer was happy to pay more than $3 for YOUR cupcakes last time so why wouldn't you be confident that they are worth that same amount when buying directly from you? In addition to what Jason said about being licensed, some licenses only cover selling directly to the consumer so make sure yours covers selling to a restaurant for resale. Better to do everything legally than risk losing your behind...
Don't down play being self taught! I'm self taught...34 years ago I started when I couldn't afford a 1st birthday cake for my daughter...I found an old fashioned Wilton kit for Raggedy Ann, with plastic tips and really firm plastic piping bags and a heavy foil pan...I practiced on a cookie sheet piping those stars over and over...and wholla! I read books and just kept practicing over and over before you tube...now you can watch first hand online if there is a technique you don't know how to do!
Charge the $3 a cupcake!! They are the same cupcakes your uncle was selling and direct from you they are not paying his mark up either!
Good luck!! You are worth it!
Oops...I guess its your father's friend not uncle!...too early! lol
AHe was paying her $3 per cupcake so probably charging the customer $4!!! Charge $4....and feel 100% comfortable with it. A thing's value is whatever someone is willing to pay. History shows that someone paid more than $3/each
For that much piping on every single cupcake? $4 each and since I only sell by the dozen, it would be 6 dozen for $288.
ARemember that you are not your customer - just because you wouldn't pay $3-4 for a cupcake doesn't mean they aren't worth that. If a pro has been paying you this much, and likely charging his customers even more, this is all the confirmation you need that they are worth that much.
When will they add a like button? Kiki "LIKE"