I've started a gluten-free, vegan and refined sugar-free bakery in Los Angeles. It's very new and I currently work out of an incubator kitchen. While the good farmer's markets are proving to be a pain to get into, I've given some sample baskets to a few really popular local coffee shops. I immediately got interest from all of them and was a bit overwhelmed. When I sent them my pricing, they all agreed that the items were a bit out of their price range.
Any recommendations on profit margins for goods like these? Right now the wholesale prices I'm quoting are about 40% higher than that of Cost of Goods. Unfortunately, my ingredients are expensive. An example would be that I'm selling my muffins at $20/dozen (suggested retail $3.50-$4 per muffin).
Any suggestions, insults, questions, etc will be immensely appreciated!!!