I just started selling food but don't know how to price it..I NEED help?
Hello everyone :)
I just started making homemade food for the customers at my hubby's work.
The thing is I don't know how to price my stuff..Any formula? How much should I make out of everything I buy to make the food?
After understanding TAX and business laws of trading in relation to business tax, not mention business insurance as if food poisoning or anything in that matter occurs then you can go to prison for it.
How i would look at pricing the cost of my products
I would firstly look the followings
Cost of ingredients
Cost of packaging
Cost of utilities to make that portion
Consider an understanding; can you make that small portion or is a large amount being wasted ( include if you end up feeding the family the remainders)
The time you put in making the food, what is your hourly rate
The service of quality required in making the food (consider shity take a ways to high standard take a ways)
The number of people you want to feed
Have you thought of development, where you see this business venture in five years rom now
Must consider word of mouth advertisement.
My formula would be to make some extra cash
Cost + packing + 50p for utilities
hourly service rate : £7 / 6 = rounded to the nearest 10p = £1.20
Consider if the consumers would like to pay for a five meal week deal?
If so your new equation would be
Cost + packing + £1 or 50p for service and utilities x 7
Hourly service rates £1.20/2x7+50p= rounded to the nearest pound £5
Hope this helps as I don't you will be registering the venture