Need Help In Pricing

Baking By ailika Updated 13 Jun 2015 , 6:53am by ailika

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ailika Posted 23 Apr 2015 , 12:57am
post #1 of 3

I was asked to do some cake pops, frosting shots and cupcakes. My problem is that I have no idea how much to charge for each. Some cupcakes big and some small, was wondering if some flavors cost more than others.

2 replies
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jason_kraft Posted 23 Apr 2015 , 5:29pm
post #2 of 3

A good way to price your products is to look at the costs involved. Add up all the ingredients needed for the product, estimate your labor and multiply the number of hours required by the hourly rate you want to earn, then estimate overhead costs on a per-order basis to recover the cost of license fees, insurance, etc. Add all these costs together, then add an additional markup (usually in the 10%-30% range depending on your market) for profit.

You'll also want to look at the prices of local competitors as a sanity check. If cake pops end up costing you $3 each before markup and local competitors sell them for $2.50 each, it might not make sense for you to make them.

Good luck!

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ailika Posted 13 Jun 2015 , 6:53am
post #3 of 3

Thank you so much!

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