If you’re getting ready to start a cupcake business, you’re going to have to figure out how much to charge for your wonderful confections.
This is a business after all, and in order to keep it running, you need to charge enough to make it worth your while.
But how much should you charge? And how, exactly, do you go about setting your cupcake prices?
Let’s get right to it!
How Much Should You Charge For Cupcakes?
Based on our real-world cupcake pricing research, you should plan to charge around $4.77 per standard-size cupcake, $2.35 per mini cupcake, and $10.86 per jumbo cupcake, with an overall max of $13 per cupcake and an overall minimum of $1.40.
Obviously, these are just averages. When pricing your cupcakes, you should consider things like: the venue at which your cupcakes will be served, the size of your cupcakes, the level of expertise involved in making your cupcakes, and the pricing expectation of your target customer.
In other words, if you are baking large, premium cupcakes for a wedding, you might set your prices around $12 – $13 per cupcake.
On the other hand, if you are selling mini birthday cupcakes, you might be better off charging around $2 per cupcake.
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Real World Cupcake Pricing Data
Like any business, if you’re unsure how much to charge for cupcakes, you should take a look at your competition. Not only will this give you a good idea what people are willing to pay, but also, what kind of constraints you need to operate within in order to maintain profitability.
With that in mind, here’s some real world data to give you a good starting point when pricing your cupcakes:
| Bakery | Cupcake Package | Cost | # Of Cupcakes | Cost Per Cupcake |
|---|---|---|---|---|
| Crumbs Bakeshop | 12-Pack of Signature Cupcakes | $85.00 | 12 | $7.08 |
| Crumbs Bakeshop | 12-Pack of Standard Cupcakes | $48.00 | 12 | $4.00 |
| Crumbs Bakeshop | 12-Pack of Mini-Cupcakes | $35.00 | 25 | $1.40 |
| Nothing Bundt Cakes | Signature Bundtinis | $29.00 | 12 | $2.42 |
| Magnolia Bakery | Birthday Cupcakes | $53.00 | 12 | $4.42 |
| Wicked Good Cupcakes | Best Sellers Cupcake | $49.99 | 4 | $12.50 |
| Sprinkles | Sprinkles Favorite Dozen Box | $75.00 | 12 | $6.25 |
| Cheryl’s Cookies | Buttercream-frosted Assorted Cupcake Gift Box | $39.99 | 6 | $6.67 |
| Misha’s Cupcakes | Miami Favorites Mini Cupcakes | $65.95 | 12 | $5.50 |
| Baked By Melissa | Latest & Greatest Cupcakes | $37.00 | 25 | $1.48 |
| Williams Sonoma | Georgetown Cupcake Holiday Cupcake Box | $74.95 | 12 | $6.25 |
| Carousel Cakes | Best Seller Cupcakes | $65.95 | 12 | $5.50 |
| Bake Me A Wish | Jumbo Chocolate Lovers Cupcakes | $52.00 | 4 | $13.00 |
| Pattys Cakes and Desserts | Mini Cupcakes – Split Dozen | $25.00 | 12 | $2.08 |
| Buttercup Bake Shop | Assortment of 12 – Classic | $42.00 | 12 | $3.50 |
| Buttercup Bake Shop | Assortment of 12 – Mini | $20.00 | 12 | $1.67 |
| Oh My Cupcakes | Chocolate Peanut Butter Attack | $2.25 | 1 | $2.25 |
| Oh My Cupcakes | Chocolate Peanut Butter Attack – Gluten Free | $4.60 | 1 | $4.60 |
| Oh My Cupcakes | Party Animal | $4.30 | 1 | $4.30 |
| Pinkitzel | 1-Dozen Cupcakes | $42.00 | 12 | $3.50 |
| Pinkitzel | Birthday Cupcake | $3.95 | 1 | $3.95 |
| Sweet E’s Bake Shop | Sweet E’s Signature Cupcakes | $29.00 | 6 | $4.83 |
| Cakes By The Lake | Pre-Assorted Cupcakes | $23.00 | 12 | $1.92 |
| We Take The Cake | Bouquet Cupcakes 8-Pack | $89.00 | 8 | $11.13 |
| The Cupcake Collection | 12 Assorted Cupcakes | $42.00 | 12 | $3.50 |
| Baked Cravings | Chocolate Cupcake – 1 Dozen | $39.20 | 12 | $3.27 |
| Baked By Melissa | OMGF Gluten Free Cupcakes | $50.00 | 25 | $2.00 |
| Twisty | 6 Gluten Free Cupcakes – Assorted Flavors | $36.00 | 6 | $6.00 |
| B+B Bakery | Cupcake Assortment (Gluten-Free) | $44.95 | 12 | $3.75 |
| Standard Cupcake Average | $4.77 | |||
| Mini Cupcake Average | $2.35 | |||
| Jumbo Cupcake Average | $10.86 | |||
| Gluten Free Cupcakes (Standard Size) | $4.78 | |||
| Min Price Per Cupcake | $13.00 | |||
| Max Price Per Cupcake | $1.40 |
Setting Your Cupcake Pricing: Here’s What You Need To Consider
At this point you should have a general idea of what to charge for your cupcakes. But since you probably have multiple flavors, sizes and decorating options from which your customers can choose, it’s time to get specific. You need to zero-in on a price for each cupcake option you offer, and here’s how to do it.
Research Your Competition
As nice as it would be, you are not the first person to sell cupcakes. So, if you plan to compete in your cupcake market, you need to research your competition. How much do your competitors charge for their cupcakes, and why? What kind of options do they offer? What makes your cupcakes better than theirs?
These are all questions you need to answer in order to determine your pricing. However, be careful not to focus solely on price. You aren’t researching your competition just to undercut them. You are researching them to determine how much you should charge. If you make better cupcakes, you should charge more for them, plain and simple.
Calculate Your Baking Costs
This is probably the most tedious part of pricing your cupcakes, but it is the most critical thing you can do. Before you determine your pricing, you need to know exactly how much it costs you to make each individual cupcake, and here’s how to do that.
Starting from scratch, I want you to add up the cost of ingredients for every flavor of cupcake, and every decorating option you offer for your minimum order amount. For example, if your minimum order is 12 cupcakes, add up the cost of ingredients it takes to bake 12 cupcakes in every flavor you offer, without any decoration. Now, write those numbers down.
Next, I want you to add up the cost of every decorating option you offer for your minimum order of 12 cupcakes. Now, write those numbers down.
Lastly, the often forgotten part about baking, is the equipment. Mixers, ovens, pans, spatulas, and any other baking tools or utensils cost money. And therefore, you these costs need to be accounted for. So, write down the cost of every tool or utensil you use to bake your cupcakes. Now, divide each of those numbers by the number of minimum orders you expect to make over the life of each item.
Now, divide every number you have written down, by your minimum order number (in this case, 12). And there you have it. You can now pick and choose between each option you offer and determine the exact cost associated with it.
Important Note: As the owner of a cupcake business (or any business for that matter), one of the most important things you can do is keep track of your income and expenses through some kind bookkeeping software. Additionally, you need to have the ability to invoice your clients, and take payments. For that, I highly recommend FreshBooks. It’s inexpensive, feature-packed, and will make your life much easier! Click here for a FREE 30-day trial of FreshBooks.
Calculate Your Time Per Cupcake
Time is money, so if you want to increase your profit, you have 2 options: decrease the amount of time it takes to complete each cupcake, or increase your price.
But before you can do that, you need to know the average time it takes you to bake and complete every cupcake you offer.
Yep, you are literally going to have to time yourself.
Time yourself baking the most basic cupcakes you offer, and then your most complex cupcakes. Then, divide your times by your minimum order number.
Calculating your time is critical, because it will help you determine the volume of cupcakes you can produce in any given time period.
How To Determine Your Cupcake Pricing
Now that you’ve researched your competition, know your cost per cupcake, and the average amount of time it takes you to bake your minimum order, it’s time to set your cupcake pricing. This is how we recommend you do it.
- Set a daily profit goal, and write it down. In this example, we will set our profit goal at $100 per day.
- Determine how much time you can reasonably dedicate to baking cupcakes each day. Keep in mind, this number needs to be the actual time you spend baking. This does not include marketing your business, delivering cupcakes, or anything else. Now, divide that number by the amount of cupcakes you can make, based on your average time per cupcake. The resulting number is your cupcakes per day. So, if you can bake 50 cupcakes per hour, and you can dedicate 2 hours to baking each day, your cupcakes per day would be 100.
- Now that you know how many cupcakes you can make per day, you need to determine your cost per day. Multiply your cupcakes per day, by your minimum cost per cupcake. For example, if it costs you $0.75 to bake a standard cupcake, and you can bake 100 cupcakes per day, then your cost per day will be $75.
- Finally, add your cost per day to your profit goal, and divide that number by your cupcakes per day. For example, if your cost is $75 per day, and your daily profit goal is $100, then you need to charge at least $175 for 100 cupcakes. Now, if you divide $175 by 100 cupcakes, you get $1.75 per cupcake. So, in this case, if you were to charge $2 per cupcake, you would stand to make a profit of $125 per day.
Final Thoughts
One of the most important steps in starting a cupcake business–or any business for that matter–is figuring out how much to charge. And the more specific you get, the more successful you’ll be.
Pricing your cupcakes properly will ensure you remain profitable, and make enough money to keep your business running. Remember, this is your business, and if you want the world to experience your wonderful confections, you need to charge enough to make it worth your while.
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