I have a side business cupcakes cake pops candy sweet treats tables favors and cookies. Business is slow since I first started every so often I’ll get an order for something. I don’t have a store front and work out of my home everything is made frim scratch I was advertising and asking 25  a dozen for basic cupcakes chocolate, red velvet and vanilla with sprinkles or colored sugar and 30 a dozen for speciality flavored cupcakes such as s’mores Oreo and cream etc I have over 35 flavors, those are the going rates for bakeries with store fronts in the state I live in and the area I’m in 

my brother is business smart so I asked him to help me get more customers orders and he told me I’m charging to much  he said I should charge less to get business going and then start upping my prices 

he said 12 for basic a dozen and 15 for specaility it cost me 60 cents for basic and 70 cents for speciality a cupcake 

do you think I’m lowering myself 

you need to get your brother to make a dozen from start to finish -- from gathering ingredients, dealing with the customer ordering, making it all, cleaning up, arranging your schedule to be there for customer pick up, or delivering and get back to me on the prices he proposes 

I guess you could let him use your recipes but there's that too

Ditto everything -K8memphis just said!  $25 for a dozen bespoke cupcakes sounds a little cheap to me.  If you ordered a dessert in a restaurant - even McDonalds - it would cost more than that!

Thanks I’m finding that once I give my prices out the people say I’ll get back to you and they never do or they say I’m to expensive. They want grocery store prices and I don’t do that I went to cupcake bakery a few weeks ago because I was craving a cupcake and with a cold I had no energy to make some she was charging almost 30.00 for a dozen so I think my prices at 25 a dozen for basic and 30.00 a dozen for speciality are not pricey at all but my brother seems to think I should start low build a base of customers word of mouth and then start increasing my prices. but I told him these things take time to make you can just charge a song and a dime and expect to make any money. I wish I had funds to get a truck I could make a killing this guy in my town just opened a donut truck weekends only he parks at a different spot and once he sells out he’s done for the day he charges 22 and 33 a dozen depending on if you want classic donuts or speciality his line was two blocks long today 

Thanks I’m finding that once I give my prices out the people say I’ll get back to you and they never do or they say I’m to expensive. They want grocery store prices and I don’t do that I went to cupcake bakery a few weeks ago because I was craving a cupcake and with a cold I had no energy to make some she was charging almost 30.00 for a dozen so I think my prices at 25 a dozen for basic and 30.00 a dozen for speciality are not pricey at all but my brother seems to think I should start low build a base of customers word of mouth and then start increasing my prices. but I told him these things take time to make you can just charge a song and a dime and expect to make any money. I wish I had funds to get a truck I could make a killing this guy in my town just opened a donut truck weekends only he parks at a different spot and once he sells out he’s done for the day he charges 22 and 33 a dozen depending on if you want classic donuts or speciality his line was two blocks long today 

If you feel your prices are fair and they cover your expenses and give you enough profit besides, don't lower them.  It's very difficult to raise your prices.  I get what your brother is saying and it works for some businesses, but not all.  Don't sell yourself short even just starting out.  You don't want to get so much business at next to nothing prices that you're working yourself silly for very little profit.  Quickest path to a guaranteed burnout.

Just starting out is going to be very slow.  Give yourself some time and then some more. As long as you're not depending on the income you can take your time to build a clientele that will appreciate your special product and be willing to pay your price.

The customers that are willing to come to you when you drop your prices are also likely to throw a fit and go to some other 'cheap cake lady' when you try to raise your prices.

This will leave you not only back at square one but also feeling pretty annoyed at having done the jobs for basically nothing.

Is it possible there are just too many shop front bakeries in your area to allow you to be able to get a foothold in the market?

your brother is wrong -- once you garner a clientele of customers at that low of a price point they will not graduate with you to the correct pricing which is at least double -- you're just saving them a trip to the grocery store -- there are zillions of people baking and starting to bake with low ball prices  popping up like whack-a-mole -- your brother doesn't know about this industry -- you'll burn out doing what he said --

Totally agree with K8memphis. And to put it another way. Does a car mechanic or plumber dicker with there prices? No, you use them again because they did a good job. If they did a lousy job, obviously, you’re not going back. Ditto your sweet treats. If customers like them, they’ll come back. And they will spread the word. I don’t care what business you’re in, it takes time to establish. You don’t garner raves and customers overnight. Most businesses aren’t well known for 2-3 years upon starting. And don’t make a profit for approximately 5 years. Takes patience. Advertising will help. Posting your business on social media. Contacting venues that do weddings/celebrations and giving them  a print out of what you make/provide. No prices, that would be negotiated with customers. Local florist shops..do the same. You get the idea. Getting your name out there.

Your prices are already below what store front owners charge.  Do you have a yelp account??  99% of my business comes from yelp.  I learned the hard way not to lower my prices.  Your brother is not taking into account your electricity, water, gas, you have costs of boards, boxes, soap, paper towels ( I need to buy stock in Bounty) and much more..not to mention time going to buy supplies, gas to get there..wear and tear on your car.  Then figure out after all this what are you paying  yourself for all the hours, it takes valuable time to mix, prepare pans, clean and create your finished product.  Do you count the time you spend on the phone and computer .  If people want a quality product, and it sound like yours is, then they will pay.  If someone tells me now that they want a 4 tier wedding cake for 130 people and they want the exact replica of Kim Kardashian.s cake (Just an example but you know what I mean) and they only want to pay $250.00 I tell them I am sorry and I wish them the best or Like the customer who called me last week and said her fiance wants a 3 tier cake even thought they are only inviting 50 guests and she refuses to pay for a delivery charge and set up fee, said that should be free since she is ordering a cake from me and only wants to pay $75.00 since they will only have 50 guests.  I politely asked when her wedding was and then told her I am so sorry I would love to be able to a part of her special day but we are completely booked up. People think you are making a cake from a box and putting it into the oven and it comes out finished and decorated.  Dont put yourself down.  Please feel free to contact me if you want to talk about this more.  you can check out my web site www.thebloomingbakery.com or email me [email protected]  I will be glad to help you

Kindly

Melanie

sorry another thing..You cant compete with walmart or the grocery store where they make their baked good a few states away and shipped to your local store and sit in a freezer until a clerk slaps icing on them.  If they want tasteless cake let them go there.  Please please please contact me..

Melanie