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Are you looking for an amazing side hustle of one of the most delicious things to make and sell for extra money? Or, are you thinking about starting a small business? If so, then you may be thinking about selling cupcakes. 

At the same time, how much should you charge for the cupcakes you’re selling? Learn more about the best price for cupcakes below to make sure your new business is ready to succeed from your very first day!

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Average price for cupcakes

The ingredients, decoration, size, and time it takes to make cupcakes are all going to play a role in how much you should charge. In general, a typical bakery on the street is going to charge approximately $3 per cupcake. If the person purchases more cupcakes, they may be willing to provide a bulk discount.

That said, it is difficult to predict the average price for cupcakes. After all, cupcakes come in all shapes and sizes. 

It’s not unusual for someone who makes cupcakes at home to charge approximately $2 for each cupcake. At the same time, a gourmet bakery with an exceptional reputation may be able to charge as much as $4 for a single cupcake. 

So how can you figure out how much you should charge for your cupcakes?

How much to charge for your cupcakes

There are a lot of factors you have to think about if you are wondering how much to charge for your cupcakes. A few of the most important factors include:

1. The cost of your ingredients

First, you need to think about your overhead expenses. This is how much money it costs you to make the cupcakes. Of course, one of the biggest factors will be your ingredients.

pink and yellow special cupcake as an example of how to price your cupcakes

For example, if you are making cupcakes, you need to purchase sugar, flour, and eggs. You also need to think about your decorations. This could include frosting, sprinkles, and icing. 

In brief, you need to add up the cost of these ingredients to see what your overhead expenses are.

2. The average yield of a recipe

Then, you need to take a look at the average yield of a recipe. When you take all the ingredients together, how many cupcakes can you make out of them? This is the average yield of every batch of cupcakes.

You may have a different average yield for each recipe. For example, some people may want gluten-free cupcakes. Other people may not want icing on their cupcakes. Therefore, the typical yield of each recipe might be different.

3. The cost per serving

Finally, you need to calculate the cost per serving. How much money does it cost you to make each cupcake? To get this number, you need to take a look at the number of cupcakes you get out of each batch and divide it by the amount of money you spent.

Finally, you have the total overhead cost of a single cupcake. It is entirely possible that you may get a different number for each type of cupcake you make. You need to track the cost of each individual cupcake, as this will play a role in the final price.

By the way…have you thought about making money by selling cupcakes to dogs instead of humans?

If that sounds like your ideal side hustle, check out our Diva Dog Bakery course review, an article on the best course around for launching your own dog treat bakery business!

4. Other overhead expenses

Furthermore, you need to think about other overhead expenses you might incur. For example, you may have a lease you have to pay for a building. If you work out of your home, you have to pay your mortgage.

line of cupcakes for someone to work out the price for cupcakes to sell them

There are other expenses you incur as well. In addition to groceries, you also have to purchase your baking equipment. This could include a mixing bowl, a stand mixer, and several cupcake sheets. You also have to pay for the electricity required to run your oven.

You need to factor in these other overhead expenses. Otherwise, you are going to underprice your cupcakes.

5. Your time

Finally, you also have to think about how much your time is worth. How long does it take you to make each cupcake? You may be better off calculating the amount of time it takes for you to finish one recipe. Then, take a look at the number of cupcakes you produce.

You need to think about how much your time is worth. Per hour, how much money do you think you should make for the cupcakes you serve? Then, you can figure out the surcharge on each cupcake, helping you arrive at the final price.

Clearly, there are a lot of factors involved in pricing your cupcakes. It may be helpful to take a look at a cupcake cost calculator. You might also want to explore cupcake prices near you. That way, you can figure out what your competitors are charging, and use this to figure out how much you should charge for your cupcakes.

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How much do custom cupcakes cost?

Custom cupcakes will likely start at around $30 per dozen or at least $2.50 per cupcake. However, if you have been asked to make very elaborate cupcakes, then you can easily charge more than this. Ultimately, it will depend on the cost of the ingredients and how long they take you to make.

Everyone has their preference when it comes to cupcakes, and some people may want custom cupcakes. There are numerous situations where someone may want custom cupcakes. This could include wedding receptions, birthday parties, or graduations. Some people also like custom cupcakes for Halloween and Christmas.

halloween cupcakes as someone works out how much do custom cupcakes cost

Given that you are going to have to spend a lot of extra time customizing those cupcakes, you may want to have two separate prices. For example, you may want to have one price point for cupcakes that do not have any fillings or toppings. Then, you may want to have a separate price point for cupcakes to have a lot of fillings and toppings.

You may also want to have a minimum order. For example, you may not want to make any custom cupcakes unless someone is willing to order at least one dozen.

How much to charge for 12 cupcakes?

When it comes to the price of 12 cupcakes, a good starting point is approximately $2.25 per standard cupcake, or about $27 for the dozen. If someone is ordering cupcakes that have a lot of icing and decoration on them, you may want to charge more money.

While making more than $20 in one sale might sound great, as with all of your pricing decisions as part of your cupcake business, it is important for you to think carefully about how much you charge. 

For example, you may want to actually provide a slight discount per cupcake because someone is ordering more cupcakes. This may be on the basis that it’s not necessarily going to take you that much more time to make 12 cupcakes instead of two or four.

How much to charge for 24 cupcakes?

If someone is ordering 24 cupcakes, you may be tempted to simply double the price for a dozen. That said, you may want to shave off a few dollars as an incentive to encourage people to order (and spend) more. It largely depends on whether making 24 cupcakes involves double the time as making 12.

chocolate cupcakes ready to be made into 24 cupcakes

You should also think about how large the cupcakes are. After all, 24 cupcakes is a lot of cupcakes, so you may want to charge less money if you are making mini cupcakes.

Remember that there are a lot of factors involved in the price of your cupcakes. You need to think about your ingredients, your time, and how popular the cupcakes are. That way, you can make sure you charge a fair price for your cupcakes.

How much should I charge to make 100 cupcakes?

If someone is willing to order 100 cupcakes, you may want to provide a significant discount for a larger order. If your cupcakes are standard-size cupcakes, then you may want to reduce your price to approximately $2 per cupcake. That would be $200 for 100 cupcakes.

three cream and fruit cupcakes

Because this is such a large order and being able to make $200 again and again is definitely a great prospect,, you may want to do other things to entice the person to come back. For example, you may want to deliver the cupcakes to them. That way, you can save them a significant amount of time while also showing them how much you appreciate their business.

If you are getting cupcake orders that are this large, you may want to consider opening a catering arm of your business. This means that you would take your cupcakes to a party and serve them to the people who are there. This is also a great way for you to grow your business because you can pass out business cards and raise interest in your services.

Final thoughts on how to price your cupcakes

No matter which business you’re going into, working out how much to charge for whatever you’re selling is often the hardest part for many new entrepreneurs – and the same is definitely true when figuring out how much to charge for your new cupcakes.

After all, charge too little and you won’t make enough money to make it worth your time. But charge too much and you’re at risk of turning away customers.

Finding the sweet (pun intended!) spot will take a combination of market research and trial and error. Don’t be discouraged if your dozen cupcakes price ends up being too high for your target customers or your 6 cupcakes price is too low based on how long they took you to make. You’ll get there eventually – and your new cupcake business will soar.

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About the author

Anna is the founder of LogicalDollar and a personal finance expert, having been seen in Forbes, HuffPost, Reader’s Digest, MSN Money, Yahoo! Finance, CreditCards.com and many more. She’s committed to helping others get on the path to financial freedom using the experience gained from turning $60,000 in debt into a thriving investment portfolio. Find out more.