porporapassione Posted 14 Aug 2013 , 5:04am
post #1 of

I'm new here and I really need some imput.  I have recently started my own business and I was asked for a quote for 4 dozen mocha marble chocolate cream filled cupcakes with vanilla buttercream.  I gave a quote of $69.41.  Is that two much? I know you can get cupcakes at Wal-Mart etc. for half that but they quality won't be nearly as good nor would they be filled.  Any thoughts as to whether or not that amount is to high?

19 replies
scrumdiddlycakes Posted 14 Aug 2013 , 5:09am
post #2 of

That is only $1.45 each, so no, definitely not too high.

 

What you really need to do it sit down and figure out how much they cost you to make, not just ingredients, but things like electric, insurance, etc. Then add on what you want to make an hour.

If you find a post by Jason, he has a pricing formula link in his signature, it will really help you out.

 

You can't worry about comparing yourself to a place like Walmart, they aren't your competition.

Smckinney07 Posted 14 Aug 2013 , 5:17am
post #3 of

ASo, $69.41 for 4 dozen. That's 48 cupcakes, which is almost $17.35/dozen and $1.45/each. That's cheap! I charge almost that for simple cupcakes, with a simple BC swirl. Your describing what would be a gourmet cupcake-two flavors plus filling and topping. I'd charge more and that's without decorations.

You can't compare yourself to Walmart or any store like that! You honestly shouldn't be selling until you have your pricing figured out, it's tough at first. You just need to be confident and believe in your product-you said it, Walmart wouldn't have that type of cupcake, let alone freshly baked, and it wouldn't taste as good.

You need to look at Jason Krafts site and search pricing here on CC. You need to account for your ingredients, overhead, time (prep, cleaning, baking, decorating, shopping...) plus profit then you'll have your price.

Not everyone is your customer. It's a specialty item of higher quality.

Smckinney07 Posted 14 Aug 2013 , 5:18am
post #4 of

AScrum you beat me!

AZCouture Posted 14 Aug 2013 , 5:22am
post #5 of

Y'all beat me!

Godot Posted 14 Aug 2013 , 5:52am
post #6 of

AYou went into business without having your pricing in place?

Have you costed out your ingredients at all?

Why are you comparing yourself to Wal-Mart?

AZCouture Posted 14 Aug 2013 , 6:14am
post #7 of

A

Original message sent by porporapassione

I'm new here and I really need some imput.  I have recently started my own business and I was asked for a quote for 4 dozen mocha marble chocolate cream filled cupcakes with vanilla buttercream.  I gave a quote of $69.41.  Is that two much? I know you can get cupcakes at Wal-Mart etc. for half that but they quality won't be nearly as good nor would they be filled.  Any thoughts as to whether or not that amount is to high?

It's your business, none of us know what your overhead is and what your costs are or. None of us know what you've set as an hourly pay rate.

ApplegumPam Posted 14 Aug 2013 , 6:16am
post #8 of
Quote:
Originally Posted by Godot 

You went into business without having your pricing in place?

 

 

 

THIS !!!   I honestly can't believe the number of people who come on here asking this question...


Any answer you get will be as meaningful as any of us telling you how much to sell your house for

Do your own homework - and know your own worth.... set your OWN price ..... AND STAND by it !!

Nobody will respect and value your work until ....... YOU do !!
 

porporapassione Posted 14 Aug 2013 , 1:57pm
post #9 of

Like I said I'm new to this lol.  I'm not sure of the things that I am supposed to do really.  How do I go about getting a pricing list?  All I did was go to the store and get amounts and prices and then I figured out how much of the ingredient I needed and so on.  I can you all the help I can get!  There are alot of things that I haven't taken into consideration I guess.  I didn't think I needed to go to extremes if I was just doing this out of my home but I see I need to do more research.  All I've done so far is get business cards,and My husband who is an IT tech is putting a website up.  What else do I need?  HELP lol!!!!!

DeliciousDesserts Posted 14 Aug 2013 , 2:09pm

AA business plan. There are lots of free sites which outline how to write one.

You need to know legal requirements, true cost of your product, target audience, market value rate, tax rate, & so much more.

jason_kraft Posted 14 Aug 2013 , 2:45pm

ACheck out the pricing formula link in my signature below. There is no "pricing list" you can get from someone else, it's something you need to put together yourself before you start selling.

porporapassione Posted 14 Aug 2013 , 5:48pm

Do I really need a business plan if I don't have a high volume of business yet?

jason_kraft Posted 14 Aug 2013 , 5:50pm

A

Original message sent by porporapassione

Do I really need a business plan if I don't have a high volume of business yet?

Yes.

jennicake Posted 14 Aug 2013 , 5:51pm
Quote:
Originally Posted by porporapassione 

Do I really need a business plan if I don't have a high volume of business yet?

You really do.  It's the only way to know if you are going to be profitable now, what to change if it turns out you are not profitable and how you will manage accordingly if your volume increases in the future.  Trust the people that have responded already, they are all in business and are speaking from experience!

kikiandkyle Posted 14 Aug 2013 , 6:32pm

ANot if you're running a charity, but if you are selling things with the intention of actually making some money, that is a business and it is best done with a plan.

howsweet Posted 14 Aug 2013 , 8:28pm

That price is very low for most places. Compare your prices to custom cupcakes, not grocery store cupcakes that are baked, probably out of state, frozen, shipped and then iced with an icing that never has to be refrigerated and barely qualifies as food. Yesterday I bought 4 cupcakes at Crave and it was like $14. They were quite good, btw.

 

And keep in mind that not everyone wants to pay $2.50-$3.75 for undecorated cupcakes, but that doesn't mean you should lower your price for those people. Find people who appreciate the product.

Paperfishies Posted 14 Aug 2013 , 8:33pm

I charge $30 per dozen for my cupcakes and that includes just a basic icing swirl.  If the person wants white chocolate décor, fondant or gumpaste décor, I charge more.

So I would have charged $120 for the 4 dozen.

 

 

You need to sit down with all of your receipts, figure out how much you pay for ALL of your ingredients, including liners, packaging, etc....Then cost out each recipe (cake and frosting recipes), then each cupcake (including the frosting and filling), then each dozen cupcakes including cost of liners and packaging.  Then figure in all other overhead costs.

 

If you don't already, you may want to get a Sam's or Costco membership and start buying flour, sugar, powdered sugar, cocoa powder, chocolate chips, vanilla, extracts, butter, cream cheese, cream, milk and eggs in bulk.

scrumdiddlycakes Posted 14 Aug 2013 , 8:53pm
Quote:
Originally Posted by Smckinney07 

Scrum you beat me!


I win!!

LassieSaves Posted 14 Aug 2013 , 11:22pm

I guess you don't need a hard-and-fast business plan, but you should have something to aim at, and a strategy for how to get there.  "Business plans" tend to miss out a lot of things along the way, you may be over optimistic, etc.  But if you're focused on the bottom line, promotion, quality standards, etc - all separately and as building blocks - then you stand a good chance of doing just fine.

BakerBee7468 Posted 15 Aug 2013 , 8:13pm

Like Everyone has already said, you really need to do your research, Jason Kraft is the perfect person to answer all your questions. You need to figure out the cost of ingredients, packaging, your overhead costs, your time ( how much you want to make per hour) and also research market value in your area for products of similar quality. Don't worry about what grocery stores and places like Walmart charge because although people will always ask why we cost more than them, they are not your direct competitors. You cant start your business until you know what your going to charge. a business plan is essential, also you need to know all your legal requirements in your state.
 

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