Before we get to talking about why cupcakes are great, here is a little known fact about decorated cookies: We all know decorated cookies take a LOT of time to make, bake and decorate. We all know that in most cases, they are worth far more than the price we charge for them. But still, how often do you hear this from your customers: “I love your decorated cookies but I’ll have to pass as they are not in my price range”? I’ve even heard many cookiers say: “I couldn’t afford to buy my own cookies!”
What does this have to do with cupcakes? Well, we’re going to compare a few things. But first, here’s why cupcakes are your best friend:
1- They are a great price point for your customer
2- They take a fraction of the time to make compared to decorated cookies
3- Cupcake orders are generally one flavour/one design per dozen.
(As opposed to cookies where you can have various designs per order)
4- They are about 400% more profitable than cookies.
5- They are sold locally = no shipping
6- They are great for parties, events, birthdays, you name it!
7- Cupcakes require little to no design time (back and forth with the customer)
8- Almost everyone loves cupcakes because lets face it: they are delicious.
Now here is where we start comparing Decorated Cookie profits versus Cucpake profits. Don’t worry, I kept it short and simple. (I left out the price of equipment like mixers and cookie cutters, and also services such as electricity and water, as well as packaging materials, just to keep it a more simple comparison. I also left out the cookie designing time.)
Lets look at a common scenario:
• 1 dozen cookies sold for 36$.
• Total of 2.5 hours making the dough, cutting, baking, making icing, colouring icing, filling icing bags/bottles, and cleanup.
• Then, lets say 4 hours to decorate. We’re up to 6.5 hours.
• Packaging and boxing: 30 minutes.
• Total of 7 hours.
• Lets also suppose that the butter and other ingredients comes to 4$ for one single recipe.
• 36 – 4 = 32 divided by 7 = 4.57$ hourly
How close to this scenario are you?
(Cupcakes with a buttercream swirl. NOT cupcakes decorated with fondant. That’s a whole other ballgame)
2 dozen cupcakes sold at 2$ each = 48$
• Making cake batter: 25 minutes
• Preparing 24 cupcake liners, and pouring the batter into them: 15 minutes
• Making 1 frosting flavour and filling pastry bag: 20 minutes
• Frosting 24 cupcakes: 15 minutes
• Packing cupcakes into cupcake box and adding sticker (and maybe a ribbon if that’s how you roll): 20 minutes
• Cleanup: 25 minutes
• Total of 2 hours.
• Ingredient cost, lets say about the same as cookies: 4$ for ingredients.
• 48$ -4$ = 44$ divided by 2 hours = 22$ hourly
Things that make you go hmmmm.
I find that with cookies, I get excited about all the different designs I can make. But with cupcakes, I get excited with all the different flavours I can play with. I want to try each. and. every. one: Chocolate. Vanilla. Maple. Keylime. Pina Colada. Strawberry shortcake. Cookie dough. Champagne. Orange/chocolate. Lemon. Carrot. Coconut cream pie. White chocolate. Cherry. Banana cream pie. Turtle. Peanut butter cup. Salted caramel. raspberry… and the list goes on and on.
So in conclusion, I would like to specify that I am certainly not encouraging anyone to stop making decorated cookies. Bur rather, I am suggesting that a variety of different products can make a big difference on the number of sales and amount of income you make from your baking.
Don’t forget to subscribe to our mailing list to get all the latest Bake It Up a Notch news!