Forum: Cookies

Help! Cookie pricing

I was hoping that some of you ladies could help me. I have never sold cookies before and was wondering how to price them. A customer would like 24 stars with name on them packaged to travel with. Please help me!!
Thank you!

Tara, Nova Scotia, https://www.facebook.com/pages/Valleys-kool-cakes/131353476890032

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16 Replies

Denise ...

I think it would depend upon where you are located, but I price my cookies as follows..

$1.50 each for plated/boxed cookies
$2.00 each for individually wrapped (1 dozen)
$1.75 each for individually wrapped (2-3 dozen)
and then back to $1.50 each for individually wrapped (4+ dozen)

If they order 4 dozen plated, I push the individually wrapped, since it is the same price. This way each guest will take home a business card, since I tie it on to the bags. Good luck.

Corrie ...

I charge about 2.25 per cookie but bagged would probably be 2.35….and I live in the frozen tundra of eastern WY…My prices would reflect the ‘bottom of the barrel’. In fact, Miss CakeDiva you should rethink your pricing unless you happen to live somewhere even less desirable than me!!! Do not sell yourself (and your time) short ladies!

Denise ...

Corrie…I have been stumped on the cookie prices for a while and I just worked that system up. I’ve only been in business for a year and find that people still can’t justify what I charge. However, I know what you mean! I learned last year not to work for “free” anymore. If it take a little longer to build my business, than so be it. Personally, I feel that $2.00 for a party favor is pretty good. It beats buying a bunch of stuff for goodies bags, which probably will end up in the trash anyways. Lol.

Kathy Kmonk ...

I charge between $2.00 to $4.00 per cookie depending on size and complexity of design. Most folks have a problem with the $2.00 but honestly, even at that price I’m not making that much on them. I used to try to justify my prices to people but I don’t do that any more. If they question the price, I ask them if they still want to order…if not, that’s okay, I can’t afford to give them away.

Valley Kool Cakes (well half of it~Tara) ...

Thanks ladies!!! Your a life saver!

Tiffany Palmer ...

I charge $3 for cookies that are individually wrapped.

Kimberly ...

I sell mine for $2.00 to $3.00 per cookie with a min. of 12. But I have friends here who go as high as $4.00 and have no problem getting that. Just depends on your area and customers

Loren Ebert ...

$3-$4 here on Long Island. Same price individually wrapped or arranged on a platter.

Valley Kool Cakes (well half of it~Tara) ...

Thanks so much ladies! I think I am underselling my stuff!

Sugar Tales ...

Okay, this issue is one I have done a lot of research on and feel I have a good understanding on the topic of pricing cookies. I will begin by saying what something is worth and what people are willing to pay are two totally different things.

The biggest and most important part of the equation is your labour, and your time is worth something! Callye (Sugarbelle) has touched on this topic a couple of times now and she has said a few times now that under valuing the price of your products hurts everyone. If everyone valued their work accordingly, then we would all feel like we were actually being paid as apposed to giving the product away for next to nothing. You can’t make money that way! I am now going to quote something Callye wrote on her facebook page in August, 2010 in a discussion thread regarding pricing. I printed it out to refer to when I’m feeling discouraged…..

“I wouldn’t go less than $30-$40 a dozen. If I were to sell for $25, if you calculate material and time spent, I make $1.87 an hour. I am just not willing to miss t-ball games, and going to bed at a reasonable hour or spending time with my kids for any less than that. Check out Eleni’s of New York.

Also, if you shoot low, you kind of shoot yourself in the foot. Once you gain experience you will want to charge more for your “expertise”. However, if you charge $40 and Mary Jane down the block charges $15, you’re pretty much, for lack of a better word, screwed, so, you will have one of two options, charge the lower price, or not sell at all. And NO ONE likes to work for nothing. I would suggest that instead of thinking as other bakers as competition, you think of each other as a united front. In most cases competition is something like baking is perceived. ESPECIALLY if you are a small bake at home operation. Even if you worked 60 hours a week, there is NO way you can take care of an entire town, small or large. There’s always enough to go around. The idea is if you band together and set a precedent, then you ALL win.

In a nutshell, you are WORTH the money. Cookies are kind of like cars…. The ones from a warehouse type store is the 2001 Honda from the used lot. It’s good, it will serve it’s purpose. Hand decorated, custom cookies are a Lexus, a luxury, or splurge. Some people won’t drive a Lexus, actually MANY won’t, but there are always those who will, and that is the market you are shooting for. I know MANY, MANY people would disagree with me, but the ones who do have probably NEVER sat and worked for 10 hours on 24 cookies, or paid $5 for a little tiny container of luster dust etc."

She goes on to say check out Esty for pricing info and google bakeries. And while she acknowledges that this sounds “harsh”, the advice is sound.

There is definitely a market for decorated cookies. It’s just a matter of finding the right people in the right area. That’s where the internet helps. You can come into contact with a large variety of people and incomes. Don’t back down and sell yourself short! This isn’t just a skill. It requires patience, talent and lots and lots of practice! And we won’t even talk about the cost of all of the tools of the trade, and the hidden cost of electricity, and wear and tear on appliances etc. If people do not think your tasty, well decorated cookie is worth it, they can find a platter of ho-hum cookies somewhere but it won’t come close to comparing to a well decorated cookie where people rave about them and don’t want to eat it because it’s so pretty!

I read an article that stated "You are not calculating the value in the same way your buyer is. You cannot sell the price according to what YOU would pay, because you’d pay nothing – you already know how to achieve the outcome you want.

So set the price in line with the outcome, and find ways to deliver it so you’re proud of how easy it is to make the money". (taragentile.com)

Okay, I’ll step off my soap box now. But before I do, I should add that I am really struggling with the idea of selling “Lexus” cookies as well. I am very uncomfortable with valuing myself and my work at a reasonable price and I have absolutely no idea how to tap into the Lexus market whatsoever!

Sugar Tales ...

Oh and one more thing, if you follow this link and look under the cookie pricing, she has a pdf chart you can print out to help you get an idea of what to charge based on the size of the cookie. I have come to think of it as more or less $1/inch which takes you on the low end of things.

http://www.freewebs.com/alanahodgson/pricing.htm

Elena Z ...

I have been thinking about this for days! I made almost 6 dozen snowflake cookies for a friends baby shower this weekend (http://cakesdecor.com/cakes/5488) and since I had never made cookies to sell before I didn’t have a clue what to charge her mom and she ended up giving me a check for $150 which worked out to about $2.20 a cookie. I had told her that when I looked online to see what they usually go for I saw mostly the $4 range but that I thought that was an outrageous price……until it took me from 8 am on Saturday morning until 2 am Sunday, almost non-stop to prepare batter, roll, cut, bake, cool, prepare frosting and colors, frost, sugar dust, dry and detail all 68 cookies while my hand was cramping and even 3 Motrin couldn’t take the pain away! When I woke up at 8 am, my husband, daughter and I had breakfast and we starting cutting ribbon packaging cookies and tying the ribbons then curling them which took most of the morning with 2 of us at it (and a toddler crying for attention)! I can totally justify charging $3 or $4 a cookie now.

PLEASE, do not undervalue your time and efforts. I definitely should have asked for at least $200 but like they say, “Hindsight is 20/20”.

Valley Kool Cakes (well half of it~Tara) ...

Thank you so very much SugarTales and Elena!
I share a face book page with a friend of mine which is good but also presents challenges when it comes to pricing. Our work is very different,,, my work is a bit “cleaner” for lack of a better word but I also charge a lot more then she does… about double. which can cause some problems with customers. When people complain about her prices which are for example $30 for a 10" cake where as mine is at least $60… it is hard to explain that to someone who doesn’t do this all the time. The cookies I have defiantly under sold my self which I will try not to do again. Thanks again for all the help!

Elena Z ...

Good Luck!

Sugar Tales ...

Wow, what a tough position to be in. For the sake of a facebook page, I would consider having your own to avoid those complications! Anyway, glad my little rant was helpful. Good luck!