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How much should I charge for a Homemade Cupcake?

I'm wanting to start a Cupcake business on the side (I already have a full-time job). One of a few problems is not knowing how to price the cupcakes. They are standard size and I will have maybe 4 or 5 different cake flavors and then would like to have a 'Flavor of the Month' and then several different frosting flavors. Also, I will offer them filled with a few different flavors/fillings for a little more money.
I've called a few local bakeries to see what they sell their cupcakes for and the range for a standard size no frills cupcake is $1.25-$1.50 each. $2.25/each to add designs and $3.00 each for filled. And - zero discount on price per cupcake for buying a dozen or more. I've asked friends and family and they all think that's too much for a cupcake and especially paying $15.00 for a dozen (which if you do the math, that's the minimum you're going to pay going to a bakery). Now the grocery store bakeries charge much less for a dozen - about half of that.
I would really appreciate honest opinions on what I should charge. I mean I know that you have to make a profit or it's not even worth it. . So, ANY and ALL advise, personal experience in this area will be greatly appreciated!


Asked by momneedstimeout at 3:32 AM on May. 3, 2011 in Food & Drink

Level 5 (83 Credits)
This question is closed.
Answers (8)
  • The most I've ever paid for cupcakes was from Cold Stone Creamery. It was cake (of course) and frosting and filled w/ ice cream. They were heavily decorated on top with crushed candies and little accessories. I paid $8.99 for six. If you can try and find a nitch in the market (like use organic flour, offer a gluten free option, a raw cane sugar, etc) I think you could get top dollar.

    Answer by hibbingmom at 5:06 AM on May. 3, 2011

  • 3 times the cost of all the ingredient.

    Answer by CallMeAngie at 3:36 AM on May. 3, 2011

  • in all honesty i'd never pay that much just for a cupcake. i work at a grocery store with a PHENOMENAL bakery and you can get a small designed and awesome cake for the price you want to sell a single cupcake for

    Answer by momofone725 at 7:26 AM on May. 3, 2011

  • I'd price somewhere in the middle between grocery and bakery prices until you can get a good business going, then you can slowly increase to get closer to top dollar.

    Answer by Kimedbs at 7:27 AM on May. 3, 2011

  • maybe 1.49 each most people won't pay much more then that--for the filled ones 1.69 each

    Answer by Christmaslver68 at 7:36 AM on May. 3, 2011

  • My mil owns a cake business and her cakes win awards. She also makes cupcakes. There is no way she would ever make any money and she would be throwing away alot of food at the price you are suggesting. Most cake companies do offer a discount after so many items being bought. She makes cupcake arrangements (best way I can describe it) with 15 cupcake, any flavor, any filling, any design, and charges around $25 to $30 for the arrangement. They are not sold individually in her business at all because you do not make money that way at all. This is an example, but not one of hers of what she sells. The one below would go for around $50. Unless you have a store front selling on their own wouldnt be worth it.


    Answer by gemgem at 8:00 AM on May. 3, 2011

  • Ok, Man, in my defense, I never said that's what I was charging. I said I called a few bakeries and that's what THEY charge. I have looked online actually and in bigger cities they charge as much as $3.50 for one cupcake. Sprinkles Cupcakes. And - Magnolia's in NYC charges I think close to that as well. They're gourmet cupcakes but that's what they charge. I guess what I'm learning is that it's ALL a matter of preference. You can't please everybody. Some people will spend $1.25 per cupcake. The local bakeries that I called have been in this town forever so I'm assuming that they sell a good amount of cupcakes. I'm thinking of selling at our local Farmer's Market. I'll keep asking around and try to calculate what it's going to cost me from beginning to end to make and sell cupcakes.
    Thanks again.

    Comment by momneedstimeout (original poster) at 10:17 PM on May. 3, 2011

  • Oh, and Thank you sooo much for the answers that were positive, supportive, and provided great suggestions.

    Comment by momneedstimeout (original poster) at 10:19 PM on May. 3, 2011