How do you price a selling price of food?

Answer 1

its reather simple, really. but it depends on the food. how much is one kilo worth? then divide or times your required need, and hey-presto! your done!

if you want to make a profit, add a reasonable amount of money you want to adapt to.

Second answer: If you make and sell your own food (or any product), the unit selling price you set will depend on 1) the cost of materials and labor needed to manufacture one unit of product; 2) the number of units you expect to sell; 3) the total amount of other fixed costs such as taxes and factory rent, which you have to pay whether or not you make OR sell anything; and 4) the total profit you want to realize.

So if 1 cupcake costs me $1 to make,

and I expect to make and sell 50,000 cupcakes, (which gives me $50,000 in cost and revenues)

and rent and taxes for the year cost me $10,000

I have to make and sell at least $60,000 worth of cupcakes just to cover the cost of making the cupcakes and pay my rent and taxes. So my "break-even" price per cupcake is $1.20

(50,000 cupcakes * $1.20 = $60,000, which covers all my costs, but leaves me no profit).

Assuming all the facts above, in order to make a profit,I would have to price each cupcake at more than $1.20 per cupcake. For example, if I wanted a profit of $25,000, I would add $.50 to the breakeven price of each cupcake. That would make the unit selling price $1.70 per cupcake.

50,000 cupcakes sold at $ 1.70 apiece= Gross revenues = $85,000

Less cost to make 50,000 cupcakes = (50,000)

Less rent and taxes (fixed costs) = (10,000)

My total profit = $25,000