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8 Replies Latest reply: Oct 6, 2009 11:37 AM by snccigars RSS

Cupcake prices

Ilovecupcakes Newbie
Currently Being Moderated
Hello,
I am new to the forum. I, have been thinking about what my passion is for a long time. I, was a cake decorator for a long time and decided that I wanted to sell cupcakes.
I LOVE IT!! Now, my only problem is that of course I am looking for grants or loans to get started. But, in the meantime I am getting my website and business cards in line. I have called alot of different bakeries and I got alot of different prices. Cupcakes out here in Catonsville, Ellicott City has not really taken off yet. And, of course, I want to be the one to get the cupcakes rolling. Since, the bakeries charge so much for one cupcake and then I notice that a flower company is doing cupcakes and they are ridiculously high in price. So, I guess is I want to know how much one would think or would pay for a cupcake that is of course all homemade.
I, would love to hear from anyone..
  • Re: Cupcake prices
    Analysight Novice
    Currently Being Moderated
    Hello Ilovecupcakes!

    Congratulations on taking the plunge. I have answered a few posts about pricing, both within this community and on my blog. In this community, right in this forum, I have addressed price in "Pricing for Profits ~ Best Strategies," and "Can you charge too little for services?" You might want to check out these posts.

    Also, on my blog, I have some posts that address pricing, both directly and indirectly. You can check those out at: http://analysights.wordpress.com/.

    Good luck!
    Alex
    • Re: Cupcake prices
      Ilovecupcakes Newbie
      Currently Being Moderated
      Thank you so much in answering me..
      • I did read the articles you mentioned. It will help me out. Like it says I don't want to charge too much and then again not too little.*
      I was gonna have an open house, make my cupcakes and let them see how they would not judge but what they would pay. Hopefully, when they see how much other bakeries would charge they would come up with price worth paying for.
      I would list how much I spent on making the cupcakes and given the time to decorate. I, have alot of family and friends support. They are all ROOTING for me!!

      Let's talk again.. Vivian
      • Re: Cupcake prices
        Analysight Novice
        Currently Being Moderated

        Vivian,

        Your enthusiasm is contagious!

        A bit of advice - I wouldn't list how much time you spent making the cupcakes or what it cost to make them. Consumers generally don't care about that. What they do care about is the taste, quality and appearance of the cupcakes and the experience they get with the cupcakes. While some people may be price-sensitive, many already realize that cupcakes are a treat anyway.

        I'm not exactly sure how you plan to organize and promote your open house, but I would use that as an opportunity to do two things: 1) Stress the time spent experiencing and enjoying the cupcake. If you make the transaction seem more like an (excellent!) experience rather than a sale, customers will generally feel more satisfied with your cupcakes and may be coaxed to pay more for them; and 2) (which, by your last post, you indicate) that you survey the attendees of your open house about how much they feel the cupcakes are worth. You might want to incorporate the Van Westendorp pricing questions into your survey.

        Analysights can design a questionnaire for you and provide a thorough analysis of the results, complete with actionable recommendations. Analysights' fee for service is reasonable and the value of the results is substantial. If you're interested, please let me know. You can find my contact information on my profile.

        Alex

         

        • Re: Cupcake prices
          Ilovecupcakes Newbie
          Currently Being Moderated
          Alex,

          I, already have all the flavors in order. I have taken to my job and friends businesses for them to taste. Of course, they love them..

          As far as my open house. I was just marinating on that idea. I, thought what a good way to get people together and try them out. I was
          also going to get some people together to do a bake sale.. I am all about working for the community. There is the Great American Bake Sale.
          I thought that raising money for before and after school for the community is great. As well as promoting my business as well. All the proceeds
          would go towards the fund raising and plus getting myself out there. What do you think?

          I am going to go out there EVERYWHERE and let them know who I am.
          There are a few places for rent that I know one day I will have my very own cupcake place.
          I want to take advantage of that, since there is no cupcake (just cupcakes) here.

          Vivian
          • Re: Cupcake prices
            Analysight Novice
            Currently Being Moderated
            Vivian,

            Those are all very good ideas. Doing for the community is a great way to get "earned publicity." But you still need to keep in mind who your target market is. Trying to sell your cupcakes to everyone in Catonsville will be counter productive. Instead, think of the people in Catonsville who who are most likely to buy your cupcakes,

            The best way to think about this would be to imagine the occasion(s) for which your customers would most likely buy your cupcakes, such as a simple treat for oneself, a kid's birthday party, or desserts for a fancy dinner party (if you're marketing the cupcakes as a luxury or gourmet food), Or maybe a local coffee shop, snack place, or office park refreshment kiosk might buy your cupcakes wholesale and resell them. Envisioning these scenarios - and identifying which one(s) are most in line with the image you want for your brand will give you a better idea of who your target market is, where to find them, and how to reach them. Doing this will also help you in constructing your business and marketing plans.

            To sell your cupcakes, remember the AIDA principle - Attention, Intererest, Desire, and Action. Right now you're doing a really good job in getting attention for your cupcakes. You create interest in them by showing the features (e.g., 100% pure chocolate, all natural ingredients, etc.). You create desire by stressing the benefits of the cupcakes' features (e.g., richer taste, healthier treats, etc.). Then you create action by asking your customers to act on your offer.

            Vivian, let me know if I can answer any more questions for you.

            Alex
  • Re: Cupcake prices
    LUCKIEST Master
    Currently Being Moderated
    Cupcake prices, Welcome (Do you have a first name)

    Everybody loves cupcakes. If I was going into the cupcake business I would do TWO things.

    One: I would contact SCORE. SCORE is FREE both in person and online.

    Two: I would develop a Business and Marketing Plan.

    Good luck, LUCKIEST
  • Re: Cupcake prices
    snccigars Novice
    Currently Being Moderated
    Opening a cupcake business sounds like a great idea, I know I would love one in my town! I would strongly suggest adding something to your business to appeal to a larger audience, but always with the focus on the cupcakes. Adding coffee or tea, or some other sweets (like fudge or old-fashioned candy), or maybe small gifts like seasonal decorations, small china tea sets or dolls. Anything else that you may have an intrest in that would add value to your cupcakes, something someone would say either, "lets go get a cupcake...oh, look at this" or " lets go to Ilovecupcakes and look at their new halloween stuff...and why we're there, lets grab a cupcake!" Think Cracker Barrell, with there gift shop, or starbucks selling donuts and coffee makers. To answer your question, I would be willing to $2-3 for a good, handmade cupcake, depending on its size. And I would love a cup of coffee with that!

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