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Personal question for business owners... - Page 2

post #16 of 18
I do this professionally from home. Could never make enough money to survive off of "small orders" cupcakes/small birthday cakes. I only do orders that are over 100.00 minimum. The bulk of my business is wedding cakes with some large specialty cakes i.e. 3 tier birthday cake etc.. You just can't make enough money off the small things unless you have a factory and are mass producing the small stuff assembly line style.

Even off large orders it was a part time business for a few years while I worked as an exec. pastry chef. Until you get your name out there and build a reputation you won't have the kind of income coming in that could truly support you. I still have great months and dead months. Thank god my husband works full time. I could not live off this alone yet - though it gets better every year.
post #17 of 18
Thread Starter 
Originally Posted by jason_kraft

Originally Posted by Artsygurl

The demographics for my local area show that the average annual income here is about $32-$34,000 per year. Unfortunately a lot people probably won't want to shell out $27 a pop for a dozen cupcakes.

Except you're not selling a dozen cupcakes, you are selling a cupcake bouquet, and you should be offering your product as an alternative to flower arrangements, gift baskets, etc. If Edible Arrangements can sell fruit on sticks in a cheap container for $50-100+, you have some room to increase your prices.

Haha! I never thought of it like that before! Yeah if they can sell "fruit on a stick" than yeah I bet I could raise my prices lol Thanks!
post #18 of 18
The income in your area seems low for a premium product requiring high production numbers. Tell us more about the area.

I am of another mindset. If the income could have supported it, an increase in quality vs. the Dollar Store route would cater to a market that can afford the product but would expect a premium package as well.

If the public won't shell out $25 for a budget product with cheap materials, look at the opposite scenario. Off hand, I would probably offer a bouquet of 12 for at least $75. As Jason suggested, this higher income level would be the target and they want a gift to look like a premium gift. I look at it as my regular price of #36 to $42 for the cupcakes, $7 to $10 for materials related to the bouquet only, and at least $20 for putting it together. On top of that, there is delivery. This price is still in line with Edible Arrangements, florists, and much lower than online companies.

Please remember to pay yourselves. Don't just lower the price to market value and accept the pennies. Be honest with yourself about your planned business, not just OP, but anyone. If the market is saturated or the demographics aren't there, it just isn't viable. But that's not a bad thing. You just need to come up with something that will fit. Generations of my family have been successful with finding a need and filling it. In our family, we make jobs, we don't look for one. That seems to be the spirit with CC members. Just research and know what you are doing. This comes from education, research, and a detailed plan.

OP, I got your pm, but I really need some information about your town... or just pm me with the name and I'll google it. Susan
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