Not A Normal Pricing Question

Business By smallville187 Updated 1 Mar 2011 , 2:43am by homebasedbaking

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smallville187 Posted 26 Feb 2011 , 8:41pm
post #1 of 4

I am hoping to get some input from those who established a good base price list. i am working on my business plan and have figured to the penny what recipes cost based on ingredient, added utilities and water etc for run time but when it comes down to labor cost added in do you figure just the time in prep since you're inactively baking or do you do it based on one hours labor or the equivalent of the entire bake time process? hope some one has an idea, i asked my husband who's pretty good at that and his eyes crossed and jaw dropped lol thanks for any help

3 replies
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cheatize Posted 26 Feb 2011 , 10:42pm
post #2 of 4

Can you walk away? Can you leave the building and come back when it's baked? No, someone has to be there to keep an eye on things. If the person baking was an employee, you'd pay that employee for the entire time, right? Therefore, you pay yourself for the entire time, too. I believe it was Indydebi that first pointed this out on here. icon_smile.gif

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costumeczar Posted 26 Feb 2011 , 11:53pm
post #3 of 4

I think you might be overthinking this to the point of losing your focus...Let me confuse the issue come more icon_wink.gif It's understandable to only think of the baking and decprating time when you're adding up your pricing, but if you add up ALL of the stuff that you have to do to run a business, the actual baking and decorating time are a small part of it. You still have to pay yourself a wage for the time you spend keeping the books, shopping, planning, meeting with clients, etc. So don't take the actual time that you're baking and think that's the only thing that you have to take into consideration. If you do that you'll end up earning about $4 an hour once everything else you do throughout the week is added up. Take everything into consideration, and then figure out what you need to charge to make a decent salary.

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homebasedbaking Posted 1 Mar 2011 , 2:43am
post #4 of 4

When it comes down to it, most people start businesses to make money. The idea of getting paid to do what you love, is many times the best selling point for going into business. But for some reason, small business owners in all different industries sell themselves short by not charging enough for their product or service. Like labels and packaging, the price of your product says a lot about your company. Pricing your product too high could deter customers from purchasing. But pricing your product too low, could turn customers off, implying that your goods are of poor quality.

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