I would like to start my business with rum cakes. I made one for a function two weeks ago, and got rave reviews. This weekend I made rum cupcakes and cut them into bite size piecies and distributed them amongst family,friends and members of my church and communtity. Again, I got nothing but rave reviews. Here's my dilemma, I want to charge $25 per cake (the ingredients are rum, nuts, butter, sugar, oil, eggs, cake mix; plus the glaze has rum,butter and sugar.) In the area where I live people tend to not want to try new things, and they tend to make comments that lead me to believe that they are cheap. I've heard comments that they think that $25 is too much. What do all my cc friends think about this. I'm I charging too much? Should I lower my price to get my foot in the door? What do you think is a fair price if I need to lower? Also the cake is a 9" fluted bundt and the nuts are baked on the bottom then when inverted it is now nut encrusted on top with butter rum glaze over it. ( I am using real jamaican rum throughout the recipe and nuts are very expensive where I live.)

I don't think you're too expensive at all, but I tend to underprice my own cakes that sounds yummy, and if you're getting rave reviews, people will pay.

Those ingredients are expensive and can add up quickly. $25 sounds very reasonable for a delicious product. I live in South Florida and travel to Key West quite a bit. There's a rumcake store there and they sell well, even for their high price.

I think your price is fair, people don't realize how much some of the ingredients cost that we use to create our cakes and cookies. Nuts are expensive and so is liquor or quality extracts.

I charge $35 for dessert cakes with alcohol. I sell a 8"choc rum cake for $35 and a 1/4 choc rum $60 and I sell a couple a month.
mpc