I'm still kind of new to this and I recently had a company reach out to me in order 500 cupcakes I made a few things for this company before but never this large usually I charge $15 a dozen in 10 for every additional dozen I'm just trying to figure out if I could should stick to that pricing or give a discount since they're getting so much .
stick to that or raise your price -- you're barely making anything as it is -- are they very decorated?
That's so low now, don't drop the price at all. You should raise it, that's way too little, you're probably not making minimum wage if you figured it out.
How long will it take you to make 500 cupcakes? If you only raise your price to $1.50/cupcake (which is still incredibly cheap) you'll make $750 as opposed to $625. Doesn't that sound more appealing to you?
They are very simply vanilla and chocolate I have a large oven so about 5 hrs.
What are your expenses? Don't drop your price!
From what I gathered, she's only going to charge $425 for all 500 cupcakes - $15 for first dozen and $10 for each additional?
Unless you are getting your ingredients at a discount for these cupcakes, there's no reason to charge less. The first dozen will cost you the same as the last dozen. If anything, charge more - more stress, more worries, more hand cramps...
A simple cupcake with a buttercream swirl costs me 50p (plus minus a bit depending on the dollar rate ). Times 500 makes 250$ ingredients only. Now depending how much you charge (if at all) for actual baking time, 5 hours labour. Electricity costs, making the batter (you can't do make a big batch so there you have some time spend here definitely!), piping the swirls, cleaning , shopping for ingredients. ...let's say you are super fast and charge a minimum of 10$...that's another what? Let's say 100$ to be on the low side. And you haven't packed and delivered yet! Not alone to speak of general costs, insurance, license etc. That leaves you with a profit of...zero? Don't see how that would make any money?!
It's still the New Year - raise your prices to accomodate how much more expensive EVERYTHING is!
All of this to say @Rosebudcreationsohio , we wouldn't lower our prices for a big order. They liked what they received previously from you, so don't lower your prices. Nothing will be cheaper for you. And quite possibly a write off come tax time for them. If this works out for you, again, they may order again, so think about ALL of your costs. Don't think about what YOU would pay. Just think about the cost of your ingredients, your overhead, AND your time (a nice wage for yourself) and then THAT is your price for the order. A cheap price might (and only might) have them order again, but if you are not getting anything out of it, you might not want to fulfill that order again.
I don't discount for larger orders and each dozen cost the same to make so I charge the same not less. making more of something doesn't make it cost less to make. Some places can offer a discount when something is purchased in bulk because there isn't any or as much additional cost for them to fulfill a larger order. Most things we purchase in bulk are upcharged enough for them to cover the ordering in bulk discount. I think when something is mass produced its easier to discount but I'm not mass producing anything we are a two person operation and there isn't room for discounts. You should really raise your price per serving and keep it straight across the board :)