I use someka price calculator template to determine my final selling price. I's very easy to calculate the selling price of a product using the template. Thank you for the video:)
I've recently started a spice business. I'll be making my own spice blends and rubs. How do I figure out my cost for each spice to then figure out how to price each final product? Thank you for your help!
Thank you for being honest. I am researching because someone who is not infood is trying to advise me doesnt understand why things fluctuate while creating the price
I sell plates on Fridays right. So for example...let's say you do baked chicken (2 pc dark) rice and green beans. Well, I know that this meal is probably around $10-12... to upsale on ticket price I would charge let's say mac n cheese at $4. That way you're increasing your ticket price per person. Then if you're having dessert...that's another $5-$6....your ticket price comes to $20...I think it's good to do it this way bc what if someone just wants mac n cheese and a slice of cake. You're still getting money, to increase your profit. Now...if it's for catering, which I want to tap into. I haven't come to find a formula just yet. However, I have heard a formula of taking the cost of how much the food costs... say $80. Ex...it costs you $80 to make ribs and beans...then times it by 3, to get $240(cost of food, profit, and back into your business). I at least try to profit half of what of what I made...until I figure this all out. Lol 😂
@@brittblessed Girl that’s smart! I’ve been experimenting what I’ve been doing is adding a drink and a homemade popsicle to the meal and then adding $2 to the total that way they’re basically forced to purchase both but then this week I had some days where the drinks and popsicles were separate and people bought more plates on those days because the price would go down from 12.50 to 10.50 and I’d sell out within a few hours so I think I’m gonna stick to that 😂 It’s so weird though cause I got everyone to do a survey and the majority of my customers said to leave it to where the drink and popsicle come with the meal and it’s like wth, where yall at on those days cause I don’t sell out on those days 😂 That’s smart though charging $4 for Mac n cheese & $5 for the desserts I want to start making desserts too 👍 Thanks for commenting ! Do you have an IG for your sales? If you wanna check mine out it’s Samantha’s Kitchen AZ
im selling an exclusive food which is quite expensive (and tight in competition the place of origin based on taste and the main ingredient used), i sold it in a rural coal town with the original pricing and its selling good, and im trying to sell it in a low-income area, should i stick to my original pricing, or lower it? note to add, i import the ingredients directly from the origin(100% same ingredients) and there is NO body sell it in the area im in now.(100km radius, there are some, but they used low quality ingredients and way more expensive)
Can you tell a business is making profits if cost is 3 bucks, selling it for 6 bucks? I mean if the profit keeps going into making new products, the business can never grow right?
Hi Damián thanks a Lot, love your Channel. If in the retailers stores a procesed food price is $10, at what price did the store paid for it? Very grateful you Made this chanel
Hey Juan thanks for asking.... The retailers set their own price points. So I could not answer what the store paid for it because this is depending upon how much the manufacturer charged them. "NORMALLY" the price paid at wholesale allows for a mark of 50%. Many retail products are bought at an example: paid $5 dollars they would sell it for $10 but this can fluctuate dramatically. There is no set pricing because buyers work with producers on many levels.
@@MarketingFoodOnline NO. you are confusing mark up with margin. For a retailer to make a margin of 50% , they would sell for $10 and buy for $5. The markup from the wholesale is 1x, or 100% ($5 on top of the $5 wholesale cost). many make this very basic but significant mistake. And yes of course the margins vary by type of retailer (more upscale, the higher the margin, but usually the lower the volume) or product category.
Hi I would like to know if you could offer some advice on how to keep cake slices cool during an expo or trade fair event. Hope you can help. Thanks in advance.
Hello thanks for asking. A few questions..... Are there any outlets where your booth is? if so they have portable rolling coolers that can plug in. Also how big are each unit? do you have small pieces? if so you can keep the cake cool being sliced but still together as a full cake and utilize the conventions refrigerators? Have someone run to those coolers if you're allowed to use them and pull out a hand full of slices as needed. There is also Dry ice which can be kept in the BOTTOM of the cooler and the sliced pieces on top packaged individually. BUT BE CAREFUL with dry ice.
Thank you for all your videos! SO helpful. I am a brand new biz a few days away from launching. One of my goals is to sell my baked products directly to restaurants. I heard you mentioned here "food distributors" that will sell to restaurants. Can't we the small biz like mine sell directly to restaurants? Wouldn't it make more sense that way?
Hey Amy thank you so glad they help. the answer is kinda Yes and No. It depends on where you are making it from cottage food law ( making from home ) in almost every state prohibits selling to restaurnats. If you are in a commercial kitchen and making there and selling that way most states allow this. From home it has to almost always be you and the customer directly. You can sell to them but it would have to be produced commercially not from home kitchen.
You didn’t say anything about how much of a percentage should be what. Ex. Food materials, man power, boxes, etc. will my flour, butter or else be a 30% and the rest 40% of the total pricing. I know about the beginning costs that’s obvious but not this.
This can vary also ...WHY? because if you sell it on an online platform you need to account for the fees the platform charges and any shipping. If you are selling directly to a customer at a farmers market the sale price is easier to calculate. There is no simple way to price a product, because you need to factor WHERE and to whom are you selling it. Also when your at a farmers market you have BOOTH fees you need to account for this expense as well. Damian
I am going to make herbal beverages. And I am going to sell them to retailers like grocery stores. It costs me just a little less than $1 to make it, not including my labors and time. This is the lowest cost I can get so far. My counsellor told me, if it costs me $1 to make, I should sell it to stores at $2. They will sell them at $4 to customers. I am very concerned about the retail price, which might potentially scare away my customers. Is my counsellor correct? What do you recommend? Thank you.
Hey Grizzly the wholesale pricing is the only price that should be your concern. The retailer is actually able to sell it for any amount you want. You do need to factor the labor the production time cost is important to note. If it cost you $1.00 you should at LEAST sell to a retailer for $2.00-$2.25 range BUT for accurate wholesale ALL factors should be considered.
@@MarketingFoodOnline Not quite. You do need to consider what you think your retail should be, compared to what you consider your competitive brands. If you think you are the best in the cat-egory and can justify a premium though your product quality, packaging and brand imagery, then set your desired retail price accordingly. Say $12 vs competitors $10. A price brand in the same category my be only $8. Then you need to work back from your desired retail price point to see what the wholesale needs to be, by allowing for the retailer margin. So if 50%, then retailer would want to buy yours at $6 wholesale. Then work back from there to calculate what your product cost should be. IF wholesale margin is also 50%, then your wholesale price needs to be $3. Within that $3 you must have enough gross margin to run a profitable business. Direct product costs plus margin = wholesale price. Otherwise you will go broke. Fast.
Hey Anthony thanks for the comment. Your actually wrong almost every state has Cotatge Food laws that allow you as a home bakery or food business to sell food products from home. Most of these states that do have laws on the books allowing this use the Health Department for inspections. Every state is completely different and you must see the list of allowable food products. Every state does not allow potentially hazardous foods though ... and that would be items that contain meat, seafood, and others that are time and temp. sensative. The number you give $7,000 fine maybe your states specifically but does not apply to all cottage food states. You are allowed to sell "certain items" that are made from home locally as long as you follow the states guidlines for food prodcution from home. In some states they dont even inspct your home at all. So yes youc an make food from home and yes you can sell locally and yes you can in some states even sell food online as long as you deliver it within state lines as well. But thanks for the messge.
![How do You Price Homemade Food [ How do I figure out how much to sell my food for]](http://i.ytimg.com/vi/erv4pP7wj78/mqdefault.jpg)
![How do You Price Homemade Food [ How do I figure out how much to sell my food for]](/img/tr.png)
This will be a great guide to help understand the process to price your food products
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I use someka price calculator template to determine my final selling price. I's very easy to calculate the selling price of a product using the template. Thank you for the video:)
I've recently started a spice business. I'll be making my own spice blends and rubs. How do I figure out my cost for each spice to then figure out how to price each final product? Thank you for your help!
Thank you for being honest. I am researching because someone who is not infood is trying to advise me doesnt understand why things fluctuate while creating the price
Don't you just hate that?!
Hello, so starting a home base business selling soul food, how would you price that?
Girl, me too lol I thought there'd be a math formula in this video.
I sell plates on Fridays right. So for example...let's say you do baked chicken (2 pc dark) rice and green beans. Well, I know that this meal is probably around $10-12... to upsale on ticket price I would charge let's say mac n cheese at $4. That way you're increasing your ticket price per person. Then if you're having dessert...that's another $5-$6....your ticket price comes to $20...I think it's good to do it this way bc what if someone just wants mac n cheese and a slice of cake. You're still getting money, to increase your profit.
Now...if it's for catering, which I want to tap into. I haven't come to find a formula just yet. However, I have heard a formula of taking the cost of how much the food costs... say $80.
Ex...it costs you $80 to make ribs and beans...then times it by 3, to get $240(cost of food, profit, and back into your business).
I at least try to profit half of what of what I made...until I figure this all out. Lol 😂
@@brittblessed Girl that’s smart! I’ve been experimenting what I’ve been doing is adding a drink and a homemade popsicle to the meal and then adding $2 to the total that way they’re basically forced to purchase both but then this week I had some days where the drinks and popsicles were separate and people bought more plates on those days because the price would go down from 12.50 to 10.50 and I’d sell out within a few hours so I think I’m gonna stick to that 😂 It’s so weird though cause I got everyone to do a survey and the majority of my customers said to leave it to where the drink and popsicle come with the meal and it’s like wth, where yall at on those days cause I don’t sell out on those days 😂 That’s smart though charging $4 for Mac n cheese & $5 for the desserts I want to start making desserts too 👍 Thanks for commenting ! Do you have an IG for your sales? If you wanna check mine out it’s Samantha’s Kitchen AZ
Very helpful Thank you
im selling an exclusive food which is quite expensive (and tight in competition the place of origin based on taste and the main ingredient used), i sold it in a rural coal town with the original pricing and its selling good, and im trying to sell it in a low-income area, should i stick to my original pricing, or lower it?
note to add, i import the ingredients directly from the origin(100% same ingredients) and there is NO body sell it in the area im in now.(100km radius, there are some, but they used low quality ingredients and way more expensive)
Can you tell a business is making profits if cost is 3 bucks, selling it for 6 bucks? I mean if the profit keeps going into making new products, the business can never grow right?
I really enjoyed this
Hi Damián thanks a Lot, love your Channel. If in the retailers stores a procesed food price is $10, at what price did the store paid for it? Very grateful you Made this chanel
Hey Juan
thanks for asking.... The retailers set their own price points. So I could not answer what the store paid for it because this is depending upon how much the manufacturer charged them. "NORMALLY" the price paid at wholesale allows for a mark of 50%. Many retail products are bought at an example: paid $5 dollars they would sell it for $10 but this can fluctuate dramatically. There is no set pricing because buyers work with producers on many levels.
@@MarketingFoodOnline NO. you are confusing mark up with margin. For a retailer to make a margin of 50% , they would sell for $10 and buy for $5. The markup from the wholesale is 1x, or 100% ($5 on top of the $5 wholesale cost). many make this very basic but significant mistake. And yes of course the margins vary by type of retailer (more upscale, the higher the margin, but usually the lower the volume) or product category.
What is the answer? You threw in a lot of factors without giving a formula for calculating markup on cost for production.
Hi I would like to know if you could offer some advice on how to keep cake slices cool during an expo or trade fair event. Hope you can help. Thanks in advance.
Hello thanks for asking. A few questions..... Are there any outlets where your booth is? if so they have portable rolling coolers that can plug in. Also how big are each unit? do you have small pieces? if so you can keep the cake cool being sliced but still together as a full cake and utilize the conventions refrigerators? Have someone run to those coolers if you're allowed to use them and pull out a hand full of slices as needed. There is also Dry ice which can be kept in the BOTTOM of the cooler and the sliced pieces on top packaged individually. BUT BE CAREFUL with dry ice.
Do you have a video on how to create a nutritional label?
glad it helped !
Is a co-packer also considered as a distributor?
Thank you for all your videos! SO helpful. I am a brand new biz a few days away from launching. One of my goals is to sell my baked products directly to restaurants. I heard you mentioned here "food distributors" that will sell to restaurants. Can't we the small biz like mine sell directly to restaurants? Wouldn't it make more sense that way?
Hey Amy thank you so glad they help. the answer is kinda Yes and No. It depends on where you are making it from cottage food law ( making from home ) in almost every state prohibits selling to restaurnats. If you are in a commercial kitchen and making there and selling that way most states allow this. From home it has to almost always be you and the customer directly. You can sell to them but it would have to be produced commercially not from home kitchen.
You didn’t say anything about how much of a percentage should be what. Ex. Food materials, man power, boxes, etc. will my flour, butter or else be a 30% and the rest 40% of the total pricing. I know about the beginning costs that’s obvious but not this.
If a product cost me $1, not including labor, how much should I sell it for?
x 3
This can vary also ...WHY? because if you sell it on an online platform you need to account for the fees the platform charges and any shipping. If you are selling directly to a customer at a farmers market the sale price is easier to calculate. There is no simple way to price a product, because you need to factor WHERE and to whom are you selling it. Also when your at a farmers market you have BOOTH fees you need to account for this expense as well. Damian
total COGS + labor+ overhead cost= wholesale price x2+ retail price but then again it depends on your market and how are you selling it
I am going to make herbal beverages. And I am going to sell them to retailers like grocery stores. It costs me just a little less than $1 to make it, not including my labors and time. This is the lowest cost I can get so far. My counsellor told me, if it costs me $1 to make, I should sell it to stores at $2. They will sell them at $4 to customers. I am very concerned about the retail price, which might potentially scare away my customers. Is my counsellor correct? What do you recommend? Thank you.
Hey Grizzly the wholesale pricing is the only price that should be your concern. The retailer is actually able to sell it for any amount you want. You do need to factor the labor the production time cost is important to note. If it cost you $1.00 you should at LEAST sell to a retailer for $2.00-$2.25 range BUT for accurate wholesale ALL factors should be considered.
@@MarketingFoodOnline Thank you.
@@MarketingFoodOnline Not quite. You do need to consider what you think your retail should be, compared to what you consider your competitive brands. If you think you are the best in the cat-egory and can justify a premium though your product quality, packaging and brand imagery, then set your desired retail price accordingly. Say $12 vs competitors $10. A price brand in the same category my be only $8. Then you need to work back from your desired retail price point to see what the wholesale needs to be, by allowing for the retailer margin. So if 50%, then retailer would want to buy yours at $6 wholesale. Then work back from there to calculate what your product cost should be. IF wholesale margin is also 50%, then your wholesale price needs to be $3. Within that $3 you must have enough gross margin to run a profitable business. Direct product costs plus margin = wholesale price. Otherwise you will go broke. Fast.
Where can we look for the recipe of making a fried puffs like were shown in the video clip? 9:40
Turkish food in the video? 😄
Guys making food at home goes against health code in every state and can land you a $7000 fine if you wanna go out of business thats the way to go
Hey Anthony thanks for the comment. Your actually wrong almost every state has Cotatge Food laws that allow you as a home bakery or food business to sell food products from home. Most of these states that do have laws on the books allowing this use the Health Department for inspections. Every state is completely different and you must see the list of allowable food products. Every state does not allow potentially hazardous foods though ... and that would be items that contain meat, seafood, and others that are time and temp. sensative. The number you give $7,000 fine maybe your states specifically but does not apply to all cottage food states. You are allowed to sell "certain items" that are made from home locally as long as you follow the states guidlines for food prodcution from home. In some states they dont even inspct your home at all. So yes youc an make food from home and yes you can sell locally and yes you can in some states even sell food online as long as you deliver it within state lines as well. But thanks for the messge.
Are these stroke victims in the video? That or robots