I think your prices look good. I agree with myrtleandlloyd on increasing the price and lowering the shipping, just to avoid people turning away. I was actually surprised that your shipping was so low but not everyone will think that is low.
As for pricing, have you ever seen DC Cupcakes on TLC? Well, I used to live near one of their shops (Georgetown Cupcakes) and I'll compare you to them. Their cupcakes are AMAZING. I didn't know a cupcake could taste so good until I tried theirs. They charge just under $3. Let's say your cupcakes are as amazing or even better than theirs. I think it would be safe to charge up to $4, total, including shipping, per cupcake.
I know that they do ship anywhere in the US. If I had a cupcake business, I would email them and ask how they ship their products (packaging, how they prevent frosting messiness, all that). Don't tell them you're a competitor, though. It's always nice to know how other companies do things.
I just checked and they only ship by the dozen and charge $26 for shipping. YIKES! Also look on Etsy for the pricing of other cupcake shops and see how they do things.
Good luck with everything!
