Pricing Question

Business By lacey88 Updated 20 Jun 2012 , 7:30pm by jason_kraft

lacey88 Posted 20 Jun 2012 , 7:26pm
post #1 of 2

i am in the very very begining stages of starting my own pastry business. i was planning to pursue wholesale clients down the road.....possibly in 4 to 5 months. however, a restaurant owner has approched me and wants me to do a dessert tasting in a few days. i need to have some prices in order for desserts...some are cakes and cheesecakes. there are a few italian desserts as well. i can price out how much it costs to make these, but how should i figure out what to charge him???

1 reply
jason_kraft Posted 20 Jun 2012 , 7:30pm
post #2 of 2

I would start with your normal retail price (ingredients + labor + overhead + profit margin). Find out what the restaurant's markup will be and see if that final price makes sense in your market. If the final price is too high, one or both of you needs to give up some profit margin, but if you have to give up too much don't be afraid to walk away.

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