How Much to Sell Cake Pops For

One of the hottest selling items in the world of baking is currently the cake pop. A delightful little chunk of cake on a stick, adorably adorned, and perfectly sized for individual consumption. It is no wonder that this sweet treat has become a popular choice for birthday parties, baby showers, weddings, and many other special occasions. If you are adding this item to your bakery menu, you’re probably wondering how much to sell cake pops for.

Cake pop cost considerations

how much to sell cake pops for

When deciding on how much to charge for cake pops, it’s crucial to consider a few factors that directly influence the pricing. Here’s a breakdown:

1. Material Cost: This is the combined cost of all the ingredients and supplies you need to produce the cake pops. It includes the cake mix, frosting, flavoring, decorative elements, sticks, bags, ties and other whees.

2. Labor Cost: This is the remuneration for the time spent in making the cake pops.

3. Overhead Costs: These are typically your fixed costs such as rent, electricity, water, disposals and packaging.

4. Market Rate: It’s essential to research the local and online market to know what other businesses are charging for similar products.

5. Profit Margin: The price needs to include a profit margin. After all, you’re running a business not a charity.

6. Value: Finally, the price should reflect the value provided to the customer including the taste, design, and overall experience.

How to determine how much to sell cake pops for

With these considerations in mind, it’s time to calculate how much to charge for cake pops.

Step 1: Add up all the costs

Material costs can vary depending on the quality of ingredients and the complexity of decoration. For instance, it could cost around $10.00 to make a dozen standard cake pops – some cake mix, eggs, oil, icing, fancier embellishments, sticks, and packaging.

Labor cost can be trickier to estimate. As a guideline, consider how many hours you have put in and how much you would like to earn per hour.

Overhead costs can be spread over the total production. If the business’ overhead costs come to $1000 a month, and you sell around 400 cake pops in a month, each cake pop carries $2.50 of that overhead cost.

cake pops

Step 2: Factor in the market rate and profit margin

Once all costs are calculated, add in a profit margin. This could be anywhere from 20-50% depending on how unique your cake pops are. If a set of a dozen cake pops costs you about $15.00 to make, then including a profit margin of 30% would mean each dozen would cost around $19.50.

Finally, ensure you’re aligned with the market rate. In 2022, the going rate for a gourmet cake pop was typically between $20 and $35 per dozen.

Step 3: Set the Price

If you maintain your cost at $15 a dozen, adding your profit will take it to $19.50 and incorporating the market rate would typically put them at around $24.00 a dozen. This means you’re competitively priced and still making a good profit margin.

However, pricing is not a one-size-fits-all. Different businesses might have different cost structures. This guide provides just a benchmark. Factors such as your geographic location, the type of customers you’re catering to, the size of the cake pops, the intricacy of the decorations, all play a crucial role in the final pricing.

As you become more established and your cake pops become more sought-after, you can certainly reconsider the pricing to reflect your growing brand value. Ultimately, your pricing should reflect the quality, taste, and customer experience that you are offering.

Take orders for your cake pops with an Airmart shop!

For more pricing guidance, check out these blogs:

How Much to Charge for Macarons

How Much to Charge for a 6-inch Cake