Am I Doing This Right?

Business By bakeforfun21 Updated 3 Jun 2015 , 3:49am by bakeforfun21

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bakeforfun21 Posted 2 Jun 2015 , 7:59pm
post #1 of 5

I finally took the time to write down prices for my supplies and figure out how much it costs to make an order of 20 white almond cupcakes and the price came down to $10.24 without frosting. I then calculated the cost of running my oven and using cupcake liners. Am I supposed to add in the cost for my pan and mixing tools as well? If so, it is costing at lesat $45 for this order. And how much do I charge for time?

4 replies
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forjenns Posted 2 Jun 2015 , 8:06pm
post #2 of 5

the rule I've heard is to take the cost of your supplies and multply by 3. the only time I've inlucded things like pan costs are if I have to buy a special pan (cutter etc. ) and then I only charge a portion.


I would have no problem charging $30 for a dozen cupcakes in my area but every area is different.


Hope that helps

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forjenns Posted 2 Jun 2015 , 8:06pm
post #3 of 5

the rule I've heard is to take the cost of your supplies and multply by 3. the only time I've inlucded things like pan costs are if I have to buy a special pan (cutter etc. ) and then I only charge a portion.


I would have no problem charging $30 for a dozen cupcakes in my area but every area is different.


Hope that helps

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johnson6ofus Posted 3 Jun 2015 , 12:43am
post #4 of 5

"Tools" are priced at cost divided by uses. How long does that item last and how many times can I use it? This is bowls, pans, spatulas, rolling pins, beater blades and even the mixer and oven itself. 

"single use" items- cake boards, boxes, liners are all just added in. 

I live in Texas. A Texas shaped cake pan, that cost $20 can be used 100 times, so it is $0.20 each time I use it. If I lived in New Hampshire, I might only use it once and figure the whole $20 on the one cake (like forjenns).

Most people just add a basic "use fee" per order, just for math and pricing. So when calculating costs, for something "standard" like cupcakes, maybe you allow $0.25 per order for equipment use. If it was a fondant covered cake, using many cutters, you may allow $.50. ... or even more PLUS any specialty items that may be "single use" just because you won't use it again

**** This is all just for calculating costs.  The IRS will require you to depreciate your equipment costs on the tax forms.  For tax purposes, small items are usual written off  the year purchased and larger items (ovens, mixers, Agbay) would be depreciated. 



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bakeforfun21 Posted 3 Jun 2015 , 3:49am
post #5 of 5

I think I got the it. Thank you so much.

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