How much is a cake pop? Before you sell yourself short by guessing at the price of cake pops, I’ll show you how to easily figure out your cake pop costs so you can quote cake pop prices with confidence!
Click here to learn how to make cake pops without using expensive candy melts.
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How Much is a Cake Pop?
In this post, I’ll show you how to figure out your cake pop costs so you can sell cake pops and make a profit. You’ll learn how to price easy designs and more complicated cake pops so you can have an answer the next time a customer asks “How much is a cake pop”
What goes into the price of cake pops?
Cake pops can range in price from affordable for simple designs to a higher price for custom shapes or complex designs.
To figure out the selling price of a cake pop you’ll need to consider:
- The cost of your ingredients
- The cost of your packaging supplies
- Your labor for making the cake pops
- Your bakery overhead costs
- How much you want to mark up for profit
Keep reading to learn how to master each step of pricing a cake pop!
Step One: Figure out the cost of your ingredients
Do you know the ingredients cost to make your cake pop recipe?
If you’re using a cake mix, pricing is easy. Just add up what you paid for the cake mix batch, the extra stuff you mix in, and the cost of the dipping chocolate. Don’t forget to include the extra cost of any sprinkles, glitter, or add-ons.
How many cake pops can you get from one cake mix box?
Usually, one box of cake mix gives you about 4-6 cups of batter, making around 36 (1 oz) cake pops.
Wondering how to price when baking from scratch?
If you’re whipping up cake pops from scratch, you need to know the cost of each ingredient that goes into the recipe. You can make it easier by converting your recipe to weights. To do this, just use a food scale after measuring each ingredient. Jot down both the measurement and the weight in your recipe.
Next, make a list of how much you spent on each ingredient. I like using a spreadsheet with the ingredients, their costs, and the sizes of the containers.
Once you’ve done this, you’ll have a rundown of weights and costs for your ingredients. Don’t forget to count how many cake pops your recipe makes so you can figure out the cost per pop by dividing the total recipe cost by the number of cake pops.
Disclosure: As an Amazon Associate, I earn money from qualifying purchases.
Step Two: Include the cost of your packaging supplies
Whether you are selling cake pops directly to your customers or have them for sale in coffee shops, or a local store, you’ll need to factor in the packaging and labeling costs to your prices.
Cake pop packaging can be quite simple. If you are selling them individually, then simple lollipop sticks and cellophane bags can keep your costs low and your prices affordable. If you offer cake pops by the dozens then be sure to include the box in your packaging costs too.
I like this All-in-One Cake Pop Sticks and Wrapper Kit. The sticks are durable and the treat bags are generously sized to hold jumbo cake pops and even ingredient labels.
To speed up the cake pop-shaping process and cut down on labor, this stainless steel dough scoop helps to accurately portion the dough.
Step Three: How to track your labor when making cake pops
The amount of time that it takes you to make your cake pops depends on the complexity of the design. A simple cake pop is relatively quick to make and you won’t have to add much labor to the cost. If you offer different shapes, custom cake pops, or unique designs, you want to make sure to track your labor and pay yourself for your hard work.
Here’s what you should include in your labor costs:
- Mixing the cake batter
- Blending the cake pop dough
- Portioning the cake balls
- Dipping the cake pops in chocolate
- Packaging the scale pops
Make sure you are tracking your labor for each type of cake pop you make so that you get paid for your time.
How much should your labor be?
When it comes to figuring out how much to pay yourself for your hard work in baking cake pops, it’s like putting a fair price tag on your time and effort. You want to make sure that the money you get reflects the energy you put into making those tasty treats.
It’s all about finding a sweet spot where you feel rewarded for your labor and your customers feel they’re getting something special. So, take a moment to value your time and set a price for your labor that feels just right!
Step Four: Include your bakery overhead costs
Have you ever calculated your bakery overhead costs? Your overhead costs are fixed costs that are associated with running your business.
Example of various overhead expenses for home bakers
- Rent for Your Kitchen Space
- Farmers Market Fees
- Website Maintenance
- Business Insurance
These are various types of overhead costs that many bakers have to consider when pricing their baked goods.
The easiest way to calculate your bakery overhead costs is to add up your monthly expenses and then divide them by your monthly sales. This will give you a cost per dollar value. If you add this amount into your markup when you’re calculating your sales price then you will know that you are charging enough to cover all of your expenses.
To see an example of how to price a cake pop and include bakery overhead costs, check out this video.
Step Five: Mark your cake pops up for profit.
Up until this point, we’ve just been figuring out how much the cake pops cost us to make. If we stopped here then it would be called breaking even. Breaking even means that you made back the cost of your ingredients and you paid yourself for your time but you have not made any profit yet. If you’re like most bakers who are setting up a home bakery then you’re doing this to make a little extra money on the side. So don’t skip this step!
To calculate the selling price for your cake pops you need to mark up the cost of making your cake pops. Sometimes that price is called your cost of goods sold.
How to Calculate Your Cost of Goods Sold
The formula for figuring your cost of goods sold is:
Cost of goods sold(cogs)=ingredient cost+packaging cost+labor cost+overhead
Once you have your cost of goods sold, you can mark up for profit and get a selling price.
How Much Should I Mark Up My Cake Pops for Sale?
The amount that you mark up your product costs is called your profit margin. Several things can affect how much profit margin you can accept.
Look at your target market, your skill level, and your reputation. If customers are willing to pay more for your designs then you can make more profit. If you’re just getting started then aim for a slightly lower profit until you build a reputation and your skill level.
In my group coaching program, The Bake Better Academy, I tell bakers to aim for a minimum of 30% profit. This means that if the cost of a cake pop is $1 they should sell it for $1.30
The formula for marking up your cost of goods is as follows:
Selling price= cost price + (cost price x mark up percentage)
For example, if the cost of making a cake pop is $1.00 and you want to mark it up by 30%, the calculation would be:
- Selling Price=$1.00+($1.00×0.30)
So, the selling price of the cake pop with a 30% markup would be $1.30.
Prices vary for different types of cake pops
If you make various types of cake pops then consider having different price ranges. Classic cake pop flavors like chocolate cake pop or birthday cake cake pop can be one price point, while fancier flavored cake pops like red velvet cake pops or a strawberry cake pop cost more.
I recommend grouping cake pops into categories based on their average cost.
- Cheapest cake pop to make (aka classic cake pops)
- Unique flavors (aka seasonal flavors that use premium ingredients)
- Intricate designs (your most expensive cake pops)
It’s a good idea to know what your categories and price ranges are so that when a customer asks “How much is a cake pop” you can give them a few ideas of your different offerings and the price difference.
What’s the Price of Starbucks Cake Pops?
Thanks to Starbucks, cake pops have gone from a trendy sweet treat to a bakery classic!
The most popular flavor, The birthday cake pop, is described as a bite-sized vanilla cake mixed with vanilla buttercream, dipped in pink chocolaty icing, and topped with white sprinkles.
I’ve got a full tutorial on making the perfect pink dipping chocolate which you can find here.
Click here to check the current price and flavors of Starbucks cake pops. (you’ll need to enter your preferred Starbucks location since prices vary by location)
Should you offer a discounted price for a large order?
Offering a lower price for a big order can be a good idea. When you make a lot of something, the cost per item usually goes down, because your production process gets faster.
Grocery stores, coffee shops, or local stores usually ask for a wholesale price when they are buying a lot of your product.
Setting a rule that there’s a minimum order amount to get the discount helps keep things organized when you’re making a lot. So, giving discounts for big orders not only means more sales but also creates a positive relationship for you and your clients.
Good news for cake pop bakers!
If you want to sell more of your delicious creations and ensure you’re fairly compensated for your hard work, understanding how to price your cake pops is crucial.
By setting the right prices, you not only attract more customers but also ensure that the effort and high-quality ingredients you put into crafting these delectable treats are appropriately valued. Knowing the ins and outs of pricing will empower you to strike a balance between affordability for your customers and a fair return for your time and skill.
So, take the time to calculate costs, consider factors like variety and uniqueness, and set prices that reflect the true worth of your adorable treats.
Are you ready to get started with your cake pop experience?
Here are a few of my favorite cake recipes that I use to make my cake pops: