|The real cost of Cupcakes
If you’ve ever wondered what the real cost of cupcakes is?
At Waggys cakes, our cupcakes start at £2.20 each with
simple decoration. This means a cupcake in a foil case, butter cream swirl and
sprinkles. For bulk orders the price of the cupcakes decrease.
We read cake related Facebook pages where people argue
over the sale price of a cupcake. Some think 50p each is ok for 12 cupcakes; but
in business how do you expect to cover your costs selling at this price? Have
you ever added up the costs?
So here it is, the list of costs to make 12 simple
cupcakes. For 12 cupcakes we would use 200g of each ingredient. If you just made
these at home as a one off your costs would be a lot more, as you would have to
buy a 1kg bag of flour when you only need 200g. We can break down the costs as
we will use the rest of the ingredients on other orders.
200g Self Raising Flour
200g Sugar £0.30
200g Butter (for the sponge) £1.28
4 Eggs £1.10
450g Icing Sugar £0.85
225g Butter (for the buttercream) £1.44
Cupcake cases £2.00
Cupcake box £1.32
Baking time 14 minutes
Labour (mixing time, baking time, cleaning
Electric for the mixer and oven?
Depreciation on machinery?
Total Costs £19.72
Waggys Cakes selling price = £27. Waggys Cakes Profit =
Selling at 50p each = £6.00. A total loss =
Would you work to make a loss?