So I've been going back and forth with the idea of a cupcake (or other dessert-type) business for, well...a couple years. Anyway, I've been doing some local research to find out how much bakers in my local area are charging. I got a surprising email from one bakery in particular when I asked how much they charge for cupcakes. Get this.....$10/basic dozen & gourmet/specially decorated ones start at $1.00 each!!!! How in the world could the small cupcake biz I would start compete with that?!?!
Their cakes are GOOD. I recently got married last year and saw them at a bridal show, so immediately I had to run over and sample their cake to see just how good it is and WOW...their flavors are to die for. So it's not like they're just some bakery that has no idea what they're doing.
They make everything from tortes to cupcakes to wedding cakes. When I was figuring MY costs for cupcakes I was thinking of charging $2.00 to $2.25 per basic flavor cupcake to $2.50 for a gourmet cupcake. My cakes are good, don't get me wrong, but how am I ever going to get business when theirs are just as good and only $0.83?!?!? That's just crazy!
So disappointing...I just can't figure how they could possibly turn any kind of profit with this pricing.