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Pricing Cookies, Need Help

post #1 of 5
Thread Starter 
I bake large chocolate chip cookies (about 8 to a pound) , with and without nuts, and I make smaller ones too. I use all top grade ingredients...butter (sometimes Plugra). I have been approached to sell my cookies through a store and am not sure how to price them. Not sure what percentage to ask for. They told me to price them per pound. Any suggests what the going rates are. Thank you and your answers are greatly appreciated.
post #2 of 5
Dollar each. You deliver fresh and on demand. Don't be afraid to ask for what you deserve. They can only say no, and then you can negotiate.
post #3 of 5
How much does it cost you to make per #? (Raw food cost) What price do you put on your labor per hour?(Labor cost) That is the most rudimentary approach.
Baruch ben Rueven / Chanaבראד, ילד של ריימונד והאלאן
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Baruch ben Rueven / Chanaבראד, ילד של ריימונד והאלאן
Reply
post #4 of 5
This is a lot of hard work and math. This is partially based on what I learned in my food & beverage cost control class
1 - ingredients price, figure out how much its costing you to make the cookies. If you don't have any ingredients leftover then thats not a problem, but if you do then you should figure out how much of that $3.50/500g butter did you use. Price it out per gram and multiply by how much you used.
2 - now think of your profit. In %, how much money do you want to make off cookies. Do you want your food cost around 30% with a 70% markup? I recommend you have a lower markup price since your producing and selling in bulk, say 50% - 70% food cost (assuming your doing this out of your home kitchen).
post #5 of 5
Food cost is not the only consideration. Think about the following:

1) There are no competitors and it's a premium product.

2) You should cover your costs, which means all of them including your payroll taxes, SS, FICA, etc. :)

3) The market does not look at your food cost and determine what's fair for you. Only you can determine what is good enough.

The big thing to remember is that competition and supply/demand drives the price of your goods. When some chefs purchase beef, for example, we actively bid out the contract every single week to get the best price. If someone is willing to sell the same product at a lower price we normally buy from that vendor. If we had only one supplier then we're tied to their prices. Not a good thing.

Premium products seldom have competitors and sell quite well in sufficiently small quantities. Take the French Laundry for example. They'll never turn 500 people through their restaurant every single night for years on end. Maybe for the first two years, but after that, who knows?

So you have a real good opportunity here. Keep the product high quality and limit its production. Someday sometime someone is going to come up with a competing product. Then you will have to think a bit more. :)
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