What To Charge A Baker/co-Packer?
Business By Browniesblondies Updated 26 Jul 2017 , 8:50am by Alohilani
What is the typical markup for a baker/co-packer? Is about double the cost of the ingredients? For example, if the ingredients cost about $.50 per brownie, how much would it cost to make about 250 brownies?
I'm a little confused by your wording. "Baker/co-packer"? Are you trying to figure out how much to charge someone for a brownie order?
If so, I would do the math and come up with a quote based on cost of ingredients + cost of packaging + delivery cost (if applicable) + labor cost. For ingredients, actually do the calculations and conversions to understand how much money your recipes cost you, per batch or however you do it. Packaging is pretty obvious. Delivery costs should vary based on how near or far the location is. Labor cost is your personal profit. Consider how much time it will take you to do this, and think about what hourly rate you're worth. Add it all up.
@cakemonster she means how much would the mark up to a copy-packer be . A co-packer is any company that processes and packages your product according to your specifications. Like David's cookies or Mrs. Fields in the USA. During the holiday season, they get so busy that, they contract out to a co-packer to manufacture, package, and distribute their cookies and candies. If you look at a can of Pepsi for instance you will see something along the lines of " prepared by Epic Enterprise and/or distributed by Epic enterprises under the authority of Pepsi Inc." Poland spring water in the US is another example.
Anyhow, and I've no idea of the answer to the OP question. However, I guess it would depend on how much you would be making if you were doing on your own versus how much you would be make with them. It would free up a lot of your time to do other things too. A better question would be, how popular is your product and have you currently outgrown your own manufacturing abilities? In any case, you need to contract an attorney, to look over the process and make sure the terms are exactly how you want it because I have heard stories of small business being screwed over by bigger companies, when they contract out their family recipes for instance. This is assuming you aren't the co-packer because if you're then I'm surely you have several attorney on your payroll and they would have the answer for you.
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