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Determining how much of a sale is profit (- overhead)? - Page 2

post #16 of 25

You might want to take some time looking at this site: http://www.score.org/resources/business-plans-financial-statements-template-gallery

post #17 of 25

Doug hasn't  active on this site since September of 2010. It's unlikely he'll be sending links to anyone.

post #18 of 25
If anyone has specific questions about determining profit or overhead I would recommend creating a new thread.
post #19 of 25

I made this one.  I just popped in what I thought my overhead costs would be (not sure exactly yet - just starting it) and my ingredients.  Then how much I use of each ingredient in my recipies.  I think it'll work for me to estimate prices :)

 

 

 

price matrix.xls 198k .xls file

 

 

 

Karen

"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

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"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

Reply
post #20 of 25
Quote:
Originally Posted by kearniesue View Post

I made this one.  I just popped in what I thought my overhead costs would be (not sure exactly yet - just starting it) and my ingredients.  Then how much I use of each ingredient in my recipies.  I think it'll work for me to estimate prices icon_smile.gif

price matrix.xls 198k .xls file

Great job on that workbook. The only change I would recommend is removing the separate markup for supplies and applying a consistent markup for profit on your total cost (including supplies, labor, and overhead).
post #21 of 25

Thanks, Jason.  So you apply your markup to everything, including the overhead?  i never thought of applying it to my labor, since it's just me.  I really appreciate your feedback!

 

Karen

"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

Reply

"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

Reply
post #22 of 25
Quote:
Originally Posted by kearniesue View Post

Thanks, Jason.  So you apply your markup to everything, including the overhead?  i never thought of applying it to my labor, since it's just me.  I really appreciate your feedback!

That's the way I calculated it, your markup is the added benefit you get from running your own business instead of working for someone else and accrues to your business (as opposed to wages paid to you). A single markup calculation also gives you a better idea of what your true cost is vs. your price.
post #23 of 25

Thanks.  I made that matrix based on information you posted in other threads, and I feel much more confident in my pricing now.  I really do appreciate your help!

"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

Reply

"Money can't buy happiness, but it can buy cake and that's almost the same thing!"
www.thecakeboxofjackson.com

Reply
post #24 of 25

I'm sure someone will correct me, but when I think "over head" I think the costs to operate my business. The heat, electricity, insurance, my car, the insurance for the car, the accountant, telephone, rent, etc...

 

When I think about my "costs" per cake, that's where I'd use a matrix like what's been posted.

 

Because "over head" includes more then the costs plus labor for the cake.

 

So someone steer me right, please? It seems that there's "over head" missing from this equation.

post #25 of 25

@ Baking Me Crazy

      and anyone else that needs it.

 

I found  Alice's cake matrix and a powerpoint to go with it. Also I found another matrix that you may like also. I will attach everything for you. I hope this helps.

 

 

 

 

 

Copy of Alice's cake matrix s.xlsx 234k .xlsx file

 

 

 

 

 

 

abc cupcakes Price matrix 2012.xls 59k .xls file

 

 

 

I was not able to attach Alice's powerpoint. But if you would like me to try to email it to you send me your email. Alice's price matrix is very detailed and has several pages the powerpoint is helpful if you choose to use hers.

 

Again, I hope this helps.

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