I echo what From Scratch said about packaging. I have pretty packaging for my impulse items, or for my items that are typically gift items, but I use typical white flimsy boxes, either taped, or with a rubber-band, depending on size. I think it would be cute to have packaging, but I am too cheap. I have a stamp with by business info on it that cost $32 at Staples, and another I spent $4 on and $8 on a stamp pad, to add some color.
BUT, a Gigi's Cupcakes just opened in the area, about 5 miles from me. A friend and frequent customer of mine text me she was going there, gushed about the inside of the place, and then sent me pictures of the box, brochure, business card, and the cupcakes after she left... She says its very upscale and fancy and decadent and indulgent and yadda yadda...I was eaten alive with sorrow for about 30 seconds, (I have a retail location going in after the first of the year, about 1 mile from there) then saw the cupcake and heard the price. The box and bag it comes in is BEAUTIFUL!!! you'll have to Google it, if not, I may add a pic, but the cupcake had about 3 times more icing than cake, and they were sloppy and blobby with jimmies on them. And they are $3.25 a piece. Mine are super cute cupcakes, with just enough icing, filled, and $2 each. In a white box, no insert. I have NO fear that there will still be people who will come to me.
When I asked her about the flavor, she said they were delicious, but she said the presentation was what she loved about them. So there are those kinds of people out there... I'd rather pay $16 less a box of them, and have a plain white box, that the turquoise and pink one with the printed bow.