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OOOOOOOOOh cupcakes, delicious business. Well its all in the ingredients, Melissa. Your price should be based on your cost plus a 20-30% profit margin. cost should include ingredients and packaging, labor ( wage * the number of hours necessary to complete the order), and overhead on a per-order basis (including insurance, license fees, etc.). Example: Buy: you buy the ingredients for 48cupcakes and packaging for 10.00 Create: takes you 3 hours to prepare, bake, and design Sell: 24cupcakes for the day versus by the dozen versus hourly Results: 24 cupcakes for the day at 2.00/3.00 each = 48.00/72.00 - buy = 38.00/62.00 - create = profit 4 boxes each sold by the dozen for the day at 8.00/12.00 each = 36.00/48.00 - buy = 26.00/38.00 - create = profit / margin 6 cupcakes hourly for the day(8hrs) at 2.00/3.00 each = 12.008/18.008 - buy = 86.00/134.00 Cupcakes for the day could be used in various circumstances but it explains if you managed to sell half of your goods for day, what the cost could reflect. The hourly rate is if you were running a bakery and had to stay open for 8hrs per day, selling an estimated 6 cupcakes per hour. Sold by the dozen is usually an example for addressing large quantity orders.
Identify Cost of cupcakes + time/labor + are you selling separately, by a per-set qty like a dozen? Cost per Ingredient Frosting (16 oz.) Cake Mix (makes 24 cupcakes) Baking Cups (60) or other packaging Eggs (2 @$0.00/dozen) time to bake time allocated for delivery or distribution(employees/delivery truck/etc)
you have to estimate the value of realistic wage for creating the cupcakes. How are you selling them whether catering or bakery per unit, set, packaging, delivery, time, and ingredients must all be factored in for correct projection
. So if you estimate that it took 3 hours to bake at 10.00 an hour there would be no profit if the whole box was not sold for the day. Why, because although you sold 24 cupcakes for the day at 2.00/3.00 each = 48.00/72.00 - buy10.00 = 38.00/62.00 - create30.00= 8.00/32.00 - 24 remaining cupcakes = -38/-62 = leaves you in a negative for estimated sales. Yes in reality your in a positive from the first set sold, but the loss of remaining products that were not sold, is still a loss of time and ingredients, in business a loss is a loss.
Why because you might have employees to pay, taxes, ingredients-records to account for, everything should coincide.
Wrapping it up: Just because it may take 2-3 hours to prep the 24 -48 cupcakes, it should be included in your final-per-cost. if it takes you 3 hours to make these cupcakes, and pay 10 for all ingredients, even if you charged 5.00(lol) per hour 15+10=25 the median aim would be selling by the set of 6 to break above even. 48/6set=8.00 per case , 2.50 individually minimum 48*2.50=$120/60 if sells only 24/25 if only 10 sold,
catering is different the order is prepaid/set, the amount of guests estimated set, so you know the WHOLE order is sold, now the individual cupcake matters on ingredients and time, BUT if you have your costs for average, filling, even high end cupcakes organized you should have pre-set amounts so there is no over or under budgeting. Arrive with a list on what options you offer and the extra charge which could be per unit or qty based. Making 30 or 100 cupcakes could take the person same amount of time or vary, so the charge is going to be about the details, quantity, packaging chosen, and ingredients.
'From google" the average cost of a dozen cupcakes is Mini Regular Mega CUPCAKE PRICES Single Dozen Standard Standard Mini Size $1.25 $14.00 Regular Size $2.50 $27.50 Mega Size $3.50 $38.50
Hope something was of use. Good luck.
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I have a plan excel to calculate that.
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I have a plan excel to calculate that.