Charging a fair price for your cupcakes is an essential part of running a cupcakery. Unfortunately, this is something we hear from a lot of customers that they are struggling with.
SO… let’s take a look at what you can do to help determine a price that’s fair for you and your customers.
How Should I Price My Cupcakes?
The most frustrating part is that there really isn’t a hard and fast number. As much as you’d like me to tell you the exact price of a jumbo vs a regular vs a dozen, it just doesn’t work that way. The price can charge will vary based on a lot of factors, including:
- Where your bakery is located
- What your competition is charging
- This experience and skill level of your baking staff
- How unique of a product you have
Taking a Deeper Dive Into Price Influences
Location Location Location
If you’re in a big city like New York, you’ll charge more than if you’re located in Small Town Wisconsin. But you probably already knew that. What you might not have considered though is how much location inside your city makes a difference.
For example, here in the Greater Chattanooga, TN area, we have a wide variety of demographics and income areas. A bakery in Downtown Ooltewah which is mostly an upper-class city can charge more than a bakery in Downtown Ringgold, GA that is still recovering from the tornado a few years back.
Examine Your Competition
The hardest part about this can often be keeping it impartial and doing an apples to apples or cupcake to cupcake comparison.
For example, if you both have a rocky road cupcake, but yours is jumbo and is loaded with toppings, and theirs is regular with just a marshmallow buttercream and chocolate sprinkles, that wouldn’t be a fair comparison of price.
You also have to factor in where they are versus you. Remember how I talked about location, if they are in an upper-class area and you aren’t, they aren’t a fair comparison. Also, if your competitor is too far away, then they are less likely to impact your customer’s view of your pricing versus theirs.
It is really common for a new bakery to under-price their goods. Typically, you are your own worst critic when you’re starting out. It can be hard to have the confidence to see your goods as deserving of the price tag they should be.
So even if you’re just starting out – make sure you value yourself and your cakes and your customers will too.
How Unique Is Your Product
Some bakeries have really unique treats – like Prohibition Bakery and their Boozy Cupcakes. If you’re doing something that unique, then you are basically in a realm of your own and can set your own price since you’re likely the only once anywhere near you doing it.
At the end of the day, the important thing is to make sure you’re pricing your cupcakes at a price that lets you keep the doors open, and that is a fair price for the quality of dessert you provide. So use this information help guide your decisions.