pricing help

Discussion in 'Professional Pastry Chefs' started by tilly96, Feb 27, 2014.

  1. tilly96

    tilly96

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    Hi there

    I am new on this site, but I hope that someone can help me out.

    I am starting a home based baking business in Ontario, Canada. I would need to figure out how much to charge for my product.

    So if somebody has a sample excell spreadsheet program. that I can use and addapt I would appreciate the help. Or if there is a good and cheap software package, that would be good also.

    Thank You.
     
  2. petemccracken

    petemccracken

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    First of all, no spreadsheet or software will be able to tell you what to charge. They may help YOU calculate the numbers.

    Second, the MAXIMUM you can charge depends on your market and your competition.

    Third, the MINIMUM you MUST charge is whatever it takes to pay ALL your costs and put some money in your pocket. That means you must know ALL your costs, overhead
    • Licenses and permits,
    • Insurance
    • business cards & flyers
    • other annual costs
    and operating
    • Food supplies
    • Packaging supplies
    • other supplies, paper, cleaning agents, printer ink, pencils, etc
    • Utilities
    • car and/or truck expenses
    • telephone and internet
    The above are just off the top of my head, you know far better than I what your expenses will be.

    Once you know your costs and you know what your competitors charge, you can decide what you should be charging.

    If your product(s) are superior to your competitors, then charge what they do or maybe a little more.

    If your product(s) are about the same as your competitors, then you'll have to compete on price, which, IMHO, is the road to bankruptcy /img/vbsmilies/smilies/lol.gif

    Initially, a pad of paper will be a big help.
     
  3. tilly96

    tilly96

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    Thank you for the reply.

    That question should have been for a program or spread sheet to figure out my cost for producing my product, and not for pricing it. Then that way I can get a better idea of what it will cost if I can break down each ingredient cost.

    Thank You
     
  4. petemccracken

    petemccracken

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    Check out http://www.mastercook.com, In believe it is $19.95 and includes an on-line recipe capture, recipe costing, shopping list, recipe scaling, etc.