![]() ![]() These are expenses for items that are not part of the ingredients or labor involved in making the recipe. There are two kinds of additional expenses that you can have in your baking business: fixed costs and variable costs. What Are The Overhead Costs For A Home-Based Bakery? If you are selling your baked goods by the dozen and packaging them together, you’ll include the cost of the packaging and label to the price per dozen. Here’s a look at the process of making sugar cookies and the time involved:Īre you packaging and labeling your items individually? Then you will need to add the cost of 1 package and 1 label to each baked good that you sell. You can always increase your hourly rate, but to start with, just pick a realistic hourly rate. If you were going to work for someone else doing this work, what would you expect to get paid? Remember, the better you are, the more you can charge for your time. To add your labor into a recipe you need to decide how much your time is worth. You Should Include Your Labor Cost When Pricing Home-Baked Goods Let’s take a look at the additional costs that home bakers have and see how to account for them in your prices. Neither of these is an accurate way to price home-baked goods though. Some mark up 3x the recipe cost, while others try increasing the recipe cost by 50% to arrive at a selling price. I hear about lots of methods that bakers use to mark up their recipe costs. How To Account For All The Costs Involved In Making Your Baked Goods ![]() Keep reading to learn more tips to price your baked goods the right way. Don’t be tempted to stop here though, There are several other costs that need to be accounted for. The cost of flour in my recipe is $0.26ĭo this for each ingredient and you will know the total ingredient cost to make your recipe.The price per unit of flour is $0.03/oz. ![]()
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