Baked by Melissa Squeezes Dollars Out of Cupcake Trend

Flickr image: Stacie Joy for CTTC

Baked by Melissa, a nascent New York cupcake store run and masterminded by 25-year-old Melissa Bushell, is evidence that combining a trend with a good price point results in a winning recipe. From The Feedbag:

(My sister and I)…strolled over to Soho and saw a lineup…(of) female tourists and Sex And The City- era locals…in front of a little outpost next to Cafe Bari. The sign said “Baked By Melissa”, a two week old cupcake shop with a twist. The menu photos made these “stuffed cupcakes” look larger than life. We thought, “what a bargain! Only $1 each”! You can imagine our surprise when we were handed something the size of a popcorn kernel. Maybe the cupcake fad is not over after all. Cupcakes are just downsizing like everyone else in New York.

The tiny cupcakes look delectable, but seriously–a silver-dollar-sized piece of cake and frosting for $1? It probably costs $1 to make four batches of the cupcakes.

If Melissa is around long enough for the cupcake trend to die, she could simply miniaturize the next trendy baked good and go from there. Smart.

  • One of the most overlooked things I think in business is correct price points. There was a great article about a video game company that decided on reducing the product price a week after they initially released. Long story short, income (Not just sales) Increased 2,000%. Over 20 times the income or projected income for the product by just dropping it by $20, businesses need to try new things rather than just what they’ve been doing.