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How Much Should a Cupcake Cost?


An issue that many new cupcake businesses encounter very soon into their venture is that their cupcakes aren’t priced correctly.

When this occurs it’s usually because businesses are underpricing their cupcakes rather than overpricing with the hope of selling more cakes.

Many think that because they’re starting a new business and want to get the first initial orders coming in, they must charge a cheaper price than they would like. This isn’t the case. You should be charging what your cakes are worth and what you deserve.

3 Reasons to NOT Under Price Your Cakes

The big problems with underpricing your cupcakes in the beginning are:

1. You won’t be making anywhere near as much profit as you should be, making it almost pointless to carry on taking orders if you’re only just managing to cover the cost of the ingredients.

2. If you start with a low price and have lots of customers, it’s going to be very hard to increase the price considerably all of a sudden. This means that you will have to slowly increase the price over a long period of time, meaning that you won’t be making the profit you should be for a very long time.

3. A cheap price tag won’t reflect the quality of your cupcakes, confusing your potential customers as to whether you are actually selling a high quality product or not!

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