How do you figure a selling price on home baked cookies?!
How do you figure a selling price on home baked cookies?
If I wanted to sell baked cookies from a home receipe by the dozen including a gift box and not including any freight charges, how do you figure a fair price?
Answers:
take the cost of making them and add your profit, like 20% or so
Cost of production, average cost of similar products, and if there is some feature of your cookies that justify a higher price.
Base it on Time, cost of material, and market
Figure the price of the shipping, container, and ingredients, and then to that add what you believe is a suitable service and labor fee.
Also factor in the deliciousness of the cookie =]
If you find that they aren't selling very well, try lowering the price or adding a two for one deal (or something of the sort) in order to entice new customers.
Conversely if you find they are selling too well, slowly raise the prise (of shipping or of the product itself) to compensate.
Have fun!
work out how much the raw ingredients and electric/gas to bake them costs
work out how long they take to make
youll need to charge enough to cover costs and wages for your time spent baking them
it all depends on how much money an hour you think youre worth
Divide the amount of product output from the cost of making the product then ad 15%-20% for profit.
there are two ways to sell, sell at a high price and make more per sale but less sales or sell at a lower price and make less per sale but more sales. You have to choose which is best for you.
It depends on how good your cookie is, the quality of the gift box, the size of your cookie, and the ingredients. You want to make a profit, so you should calculate the price to make 1 dozen cookies, (ingredients, energy used by oven, gift box, etc) and sell according to that.
So now you're charging your kids?
If you want to sell baked cookies for a profit, you need to figure out your costs of making and packaging them, figure in the cost of your efforts--the time you spend making them, then include a profit for yourself. Divide that by the number of cookies you want to sell. That should be your fair price.
But, you probably can't get what they are actually worth to you. It would be difficult to beat the price of name brand products.
So, the question is: How much would a consumer pay for your cookies? For a dozen, I would pay $10 tops. But not everyone would trust that your product is fit for eating. People are wary you know.
If this is for a, say, church benefit, people may donate more.
One other thing, most states require a health permit, etc. for you to be able to sell food.
If it was me iwould figure out the cost of ingredients to make a batch then figure out how many cookies you get to a batch and divid it into the cost of the entire batch to figure out how much it cost you to make 1 cookie. Take the cost of the cookie and multiply it times 12 to find out what 12 cookies cost you to make. Then add in the gift box. Now you have the total cost of a dozen cookies and box mark that up by 30 percent and then the cost of freight. 30 per cent is a fair percentage as most stores mark theirs up 40 percent over cost.
First it depends on how big is your cookie because you don't wanna rip them/your self off.... but from the sounds of this.. i would say $1.00
or 00.75 cents