I am participating in a Craft/business fair in my area in mid November.I am re-Grand Opening my business and am basically there for marketing exposure and not to sell lots of treats.I am handing out mini cupcakes as samples but I thought I would sell cakepops and chocolate dipped pretzels for a $1.00 each just to pay for the ingredients etc..not to make any real money.

Do you think that is a fair price?

Thanks Laurel

Don't sell anything for a price less than your 'normal' price. People will get mad when they come to buy it in your store and it's a different price. If you want to introduce people to your products than make it a free (smaller) sample.

I don't have a retail store as I am a home based business.I thought if I put "special price for today only"...Then I don't think would be upset when they come to my website and they are slightly more..Businesses put items on sale at Fairs/events all the time...People understand that a lot of times there are sale prices at these events.

AStitches is correct.

People will forget this is a "special." They will only remember the price. If they do remember it was a sale they will still want the sale price. If you could do it then, you can do it now.

As a matter of fact, I'm guilty. I never pay full price for a craftsy class. I know they will go on sale.

Interesting thought...So then I should charge my regular price of $1.85. for cakepops but I have never sold dipped pretzels before..What would be the going rate?

A

What is your cost (ingredients, labor, and allocated overhead) for a dipped pretzel? While you're at it you should do the same calculation for cake pops, $1.85 seems pretty low.

Who is your target market?

Jason _kraft....California I suspect is a very expensive market so although you may think $1.85 for a cakepop is too cheap...Here you just can't charge $3.00 or more...people just won't buy them from a home based business for that but for some reason they will from Starbucks....Go Figure....Plus every stay at home Mom around here is offering to make them for cheap so...I don't really care about the cakepops anyways as they are not a important part of my business..I just wanted something on my table at the fair that was fairly quick and simple to make and appealing to the kids...

Do you have any other suggestions...I am making mini cupcakes to hand out for free...The fair is from 9-1 so I thought I would make 100...I don't know if that will be enough..The fairs don't usually start getting busy until after 11.

Laurel

I'm a little confused kiddiekakes, you have over 8,000 posts at this website and your just learning about how to price? Haven't you ever read any posts in the business thread?

AIf cake pops are not an important part of your business, I wouldn't make them. To me, they're not quick or Simple. They're a pain in the butt. And the business you might drum up from this is going to be people looking for cheap cake pops.

I agree with previous posters: full price items that are the actual things you want to promote and sell in your business or free samples.

A

Stitches,

I have been on this forum for almost 10 years now...Most of the 8000 post were made in the early days when I was new and starting out.I have been mostly home based doing cakes when I can for family and a few friends and aqaintences and rarely do craft fairs(not in 9 years) ....and went back to work FT for several years..It is just now that I become fully licensed and Re -Grand opened my business on a full time basis...I resent the implication that you are making that I have been around enough here I should already know my pricing and should look in the business forums instead of bothering anyone here to ask...

Sorry to have asked..I won't ask again!!

A

A

This is a common misconception. If you are legal, you should be able to command a fair price. It may be harder to find the right customers, but you can.

A

If the price for a specific item has been depressed below the point where it's worth it for you to sell, don't sell that item.

For example, if your ingredient and overhead costs for cake pops are $1.50 each and it takes you an hour of labor to make a dozen, you are paying yourself $4.20/hour with zero profit margin for this item. That's less than half the minimum wage.

I agree with the respondents who suggest that you either provide samples (your mini-cupcake idea is great - very little labor, and folks can get a "taste" of what you can - and want - to do) or sell at your regular price.

Regarding cake pops, I'm in Ohio and have a home-based business. I am not licensed (cottage industry, not required), and my simplest cake pops start at $2.25 each. Complex designs can be as much as $6 - $8 each. My dad gave me a few bits of advice that have stuck with me since I started the biz 1.5 years ago - 

1. It's easier to lower your prices than to raise your prices.

2. It's better to sell your product at the right price to one customer than at the wrong price to 10 customers.

As I build my business, the "right" customers are finding me - the ones who are willing to pay a premium for the premium products I offer. I have many potential customers put off by my rates, but that's OK - not everyone is the "right" customer for my business.

Hope this helps!