How Much to Charge for Cupcakes

So you are planning to start your own baking company from home. Good for you! It’s a whole lot of fun and plenty of work, too, but it pays off. While there will be many challenges along the way, one of the major questions new bakers ask is how much they should charge for cupcakes.

To keep things simple, a “basic” cupcake should cost around $2 each. If the customer wishes to add designs (simple or intricate) or requests a larger-sized cupcake, you should increase the price. Take into consideration your costs, the competition, and how long it takes to create, too.

Hi! My name is Michelle, and making money off my (cup) cakes is what I do. I have had to go through figuring out the “right” price to charge for my cupcakes, and I’m here to share my info with you today. 

Who’s ready to make some money? (Dolla, Dolla bills, yall!)

How Much to Charge for Cupcakes

For a “basic” cupcake, you should typically charge around $2. That’s because you’re not doing anything extra, and being a cupcake master, it shouldn’t take a whole lot of time to whip up a batch of frosted cupcakes.

But things aren’t that simple in the cupcake world.

Most people seeking out fresh-baked and customized cupcakes are looking for more than just a “basic” cupcake. They want designs, whether it’s a simple design for a child’s first birthday or something more elaborate for a wedding.

That’s when things get a little tricky. But if you follow these simple steps below, you can come up with a price that you’re happy with.

Research the Competition

The last thing you want to do is be the cheapest cupcake salesperson on the block. A super low price typically equates to less quality in the baking world, so you don’t want to be known as the baker with the “cheap” cupcakes.

You also don’t want to be the most expensive one, either. Then, you might end up with little to no business.

That’s why it is so important to research the competition and see what they’re charging. More importantly, why. If their designs aren’t that great and their options are limited, they may charge less than someone with an impressive menu and fabulous designs.

Consider your skills compared to theirs and price your cupcakes as such.

Calculate Your Costs

Sure, it’s not going to cost you an arm and a leg to whip up a dozen cupcakes. But if you’re baking a dozen cupcakes per day, the cost is going to add up. That’s why you need to calculate your costs and consider them when making your decision on how much to charge for cupcakes.

How do you do this? Well, it’s pretty simple. Write down the ingredients used for the types of cupcakes you bake. Then, write down the price next to each ingredient. 

Next, consider the price of the designs. Sometimes, simple concoctions such as rainbow frosting are all the client wants. Other times, they want toys and other interesting developments right on top of the cupcake. Factor in your different design options and the respective cost.

Don’t forget to add in the price of the equipment you use. Cupcake pans and mixers aren’t cheap, and they don’t last forever. While you’re not expecting your clients to buy you brand-new tools, adding a little extra to the cupcake cost will allow you to save up for replacements.

When you’re done calculating all of your costs, you can factor the amount into your total cupcake cost and have a better understanding of what you should charge for your cupcakes, depending on flavor and design.

Bigger Cupcakes and Elaborate Designs = Higher Price

The biggest impact on price is going to be the size of the cupcakes and designs. For example, if someone is looking for a single massive cupcake for a cake-smashing first birthday party, you will charge more than a single “basic” cupcake.

If someone is asking for an intricate design, say a detailed and gorgeous pattern for a wedding, you will need to factor that into the cost, too. Not only is that going to take a lot more time to create than your “basic” frosted cupcakes, but it will require more supplies and ingredients, too.

To know how much to charge for bigger and/or more elaborate cupcakes, you will follow the two above-listed steps: scoping the competition and factoring in the costs per cupcake.

Put It All Together

The three biggest factors in creating the right price to charge for your cupcakes are the competition, the cost, and the design.

It’s important not to undercut yourself when choosing the right amount. You know how good your cupcakes are, even if your business is brand new. It may take time to prove yourself, but you will feel a lot better about your new biz if you’re getting paid what you deserve.

Also, don’t forget that you aren’t getting an hourly wage – so don’t sell yourself short! You will determine any profit you make and how much you’re charging for your cupcakes. It may be tedious to write down ingredients and the respective costs, but it’s well worth it in the end.

FAQs

There is nothing quite like a fresh-baked cupcake from a professional (that’s you). But pricing your cupcakes can be challenging. Luckily, you know everything you need to make the right price. If you still have questions, keep reading these frequently asked questions below.

How much is a dozen cupcakes at Walmart?

A dozen cupcakes at Walmart will typically cost around $6. But keep in mind that these are mass-produced instead of being baked by a local baker. They typically will not have intricate or personalized designs, either. That is why they can be priced so low.

How do you charge for homemade baked goods?

The same process is done for discovering the right price to charge for any homemade baked goods. You have to consider the competition, your costs, and your labor. Whatever you’re selling, don’t undersell so you can make a profit.

How many are a dozen cupcakes?

A dozen cupcakes are 12 cupcakes and are the most common cupcakes sought after by bakers, whether in a bakeshop or a home baker.

Final Words

Becoming a baker and selling your cupcakes is super fun, but you have to price it right to make a profit. Now you know the tips and tricks for proper pricing. Consider your competition and calculate the costs and labor involved to make the right price.

How much do you charge for your cupcakes?

I have been a lover of sweets since day one. This led me on a self-taught baking journey starting at the age of 13. It's been over 10 years since the start of my baking adventures, and I’ve learned a lot along the way. Now, people rave about my delectable treats, whether it’s a chocolate cake or a strawberry crepe.