Comment Re:The Law of Unintended Consequences... (Score 1) 611
I suspect we are talking at cross purposes.
Probably.
I was addressing the actual cost per unit (to include labor and materials) as ~1/20th of the cost paid by the consumer.
Occasionally particular items require more effort or require a higher cost because of specific ingredients, but most bakers with business longevity don't have that cost associated with EVERY item.
Most of the orders aren't unique as such, but rather chosen from a limited selection. Some of the cupcake styles will of course require more effort than others, but many of her offerings are simple designs that use cookie-cuttered fondant or edible pastry print, and all of the cupcakes are presumably using one of several base cupcakes. Cross utilization is always king in this type of operation.
Filling the oven is less of an issue because the bulk of the labor is going to be the actual decoration of the cupcakes. It would only take one unskilled laborer that can read and follow directions(though that can be asking a lot these days) to keep everyone on staff but the dishwasher rolling in cupcakes.
Secondly, it is unlikely that 8500 people went to a cupcake store that they probably didn't know much about that same week, much less that month. Business was swamped by comparison to her normal routine I'm sure, but Groupon is a tricky devil that is still kicking you long after the initial rush.
I like to use the deals on Groupon, but I hate what it does to my food costs when it's used on me.
One of the last deals we had with them was a $25 coupon for the cost of $15. We then paid Groupon $5 for each of those coupons they sold. Sadly customers didn't use it all on baked goods...