Do you charge less per cupcake dozen that you sell because you dont have the added cost of a store front bills?
I was wondering because I will start selling out of my home in the next 6 months hopefully, but wasnt sure as to how to price the cupcakes. Especially since eventually I'd like to open a store front, I dont want to have to raise my prices for each cupcake to keep my store open. I'm just at a loss..
I initially was thinking $2.25 a cupcake, $3 for specialty flavors. $.75 for minis and $18 for a dozen cake truffles. (too much? the way I look at it, the gourmet chocolate I dip then in is 5 dollars for a bar. No cheap waxy stuff)
So thatd be $27 a dozen for reg BC cupcakes, and $36 for specialty. Is that reasonable?
I am a home based baker. You need to price your cupcakes at market price. Taste all of your competitors' cupcakes. Note every price. Decide which are better than yours and which are worse. Be honest with yourself. That is your real price. You can charge what you want, but the way the customers value your cupcakes will be determined this way. By the way, my cupcakes are the most expensive in the area and the savings from having no overhead except the electric bill are all mine.
Definitely charge similarly to your store front competitors. You may be making more profit per item, but baking out of your home-you will never reach the volume that you could in a store-front location- so, in a way, it's a wash as far as the money goes.
Another consideration is the fact that when you transistion to a store front as you plan to, your regular customers are going to be turned off by higher 'storefront' prices when you've been grooming them to only be charged a lowered amount.
Also, when you undervalue your services, the PITA customers will sniff you out and totally take advantage of you time, talent and resources and you will soon find yourself hating what you used to love. Everyone loves a bargain- but if you "pass on the savings" of your little overhead costs, you will find yourself attracting cheapskates, the mentally ill and chronically dis-satisfied clients and the worst part is that they will completely abandon you when you move to a store front and have to raise prices- you will find yourself in a position of having to start over rebuilding your customer base of those willing to pay for quality- might as well get these folks recruited from the start.
And lastly, if you price lower than your local competitors, they will resent you and, in business, you need allies-not enemies.
In my small town, I charge quite a bit more than the local bakery- and twice as much as the grocery store...but what can they say when I'm charging higher prices and still have plenty of customers? At the end of the day all they can do is bad-mouth my pricing - if I was under-cutting them, they'd probably find a whole lot more to complain about for sure!
Thank you SCP and Corrie, your advise is very valuable. I dont think theres anyway I could make it in a store front charging 2.25 a peice!! Your right, about everything. I will most definately change the prices for my items. Thank you again. 
Thank you SCP and Corrie, your advise is very valuable. I dont think theres anyway I could make it in a store front charging 2.25 a peice!! Your right, about everything. I will most definately change the prices for my items. Thank you again.
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