Okay. So I live in a small town in Central California. I am trying to get my cupcake business off the ground, and it's proving to be very challenging!!!!! You see, I bake the best, gourmet cupcakes this side of Los Angeles, and no one wants to pay the money I'm asking! I've compared my pricing with close surrounding areas, not so close surrounding areas, and also the East Coast, where I purchased a dozen cupcakes for $30!!! Yes, this may sound expensive, but it's not just the cupcakes - it's the experience that you get while eating those wonderful, gorgeous looking edible works of art!
Folks in this town seem to be content to just go to the local grocery store or "big box" membership store, and buy those heavy, grease laden hockey pucks they call cupcakes. Mine are bursting with flavor, light, and made with the BEST ingredients possible, and my packaging is beautiful! I'm only charging $24.50 for a dozen, and $14.75 for a half dozen. There is definitely a market here, but competing with the $5.99/dozen grocery store brand and the $10/for 2 dozen "big box" store brand is killing me. Should I just give up??!!??!!?? I've been at this for over a year now, and I get an order here and there, but nothing consistent. I've supplied cupcakes for various occasions at work, with glowing, rave reviews.
Am I to come to the conclusion that these people are just cheap tightwads? I'm really passionate about this, and it's just not happening. Any suggestions?Why can't I sell my cupcakes?
Well, it's a little late for my advice, but location is everything. Next to a coffee shop would instinctively be my response to "what is a good spot for cupcakes?" Unfortunately, shy of revamping your shop to being a coffee shop/bakery, it doesn't help without relocation.
While people generally being cheap is an issue, it isn't your biggest hurtle. Most people are lazy. That is the big one. "Why drive 15 minutes out of my way for something that I know I shouldn't be eating because I packed on a couple pounds this winter and I don't like looking at myself in the mirror anymore, plus I shouldn't be blowing the money on that when the bills are stacking up and blah blah blah..." is what is going through their minds. So, they buy from the grocery store since they are already there.
Now, if you are willing to revamp, you could go for a traditional candy/shake shop and market more towards a children's market. Relocate near a business district or near a bookstore that doesn't have a coffee shop and do the coffee/cupcake idea.
If none of that is an option, then I recommend looking into Valentine's Day. Sell roses principally from January to Mid-February, while modestly maintaining your cupcake stock in various love to lust themes. The business from rose sells will help keep you afloat, and also may stem repeat business for your cupcakes.
This is all without going into the presentation or hygiene expectations. I am not talking about your cupcakes here, I mean the store itself. It should look inviting, respectable, and pristine. Nobody wants to enter a generic white brick building or eat the food if the edging shows grime.
It would also help to see any mascot, logo, location details, cost charts, building pictures, etc.
In this economy everyone is looking to save money. I just think it is the timing. Wait until we are again in a economic Boom ( probably in 3 - 4 years) and then try. In the meantime how about getting contracts with high end Hotels and restaurants?Why can't I sell my cupcakes?
Consider partnering with high end outfits, like non-chain expensive coffee and ice cream partners. (You'll need to share your revenues with them). Perhaps there are some caterers that can help move your product too. Possibly find out the owner of one of these E. Coast outfits and call them up ... unless they are selling nationally, they will probably be willing to share tips, tricks, and advice. On that note, make some friends with other business owners, who may become customers and clients in turn -- is there a local business alliance of some sort, or a "buy local" movement in your town? Your biggest challenge may be that you live in a small town.
You are charging more than $2 for a cupcake. The economy sucks, people are cutting back on their spending and you wonder why no one is buying them?
You say you live in a small town. How small? I can't see such a business surviving in a town with less than 50,000 people. As another poster stated location is everything. Maybe if you were set up in a mall somewhere you would have better luck.
Even in large cities a business can easily fail. Without a good location, proper advertising, and a price the market will bare any business will fail no matter how good the product is.
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