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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 £0.38

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

Sprinkles £1.00

Cupcake box £1.32

Baking time 14 minutes

Piping bag?

Labour (mixing time, baking time, cleaning time) £10.00

Electric for the mixer and oven?

Depreciation on machinery?

Insurance?

Total Costs £19.72

Waggys Cakes selling price = £27. Waggys Cakes Profit = £7.28.

Selling at 50p each = £6.00. A total loss = £13.72.

Would you work to make a loss?

 

 

Waggys Cakes Designs by Debbie. Special Occasion Cake maker serving the areas in and around West Yorkshire ... Wakefield ~ Pontefract ~ Hemsworth ~ Doncaster ~ Leeds ~ Bradford ~ Halifax ~ York ~ Harrogate ~ Barnsley ~ Sheffield

All rights and photos belong to waggyscakes copyright @waggyscakes 2010

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