How do you price homemade cookies?
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To compute cost on a per cookie basis, I simply divide $48 by the recipe yield (30 cookies) which gives me $1.60 per unit (cookie) for labor. * but don't forget that Overhead or indirect costs have to be included to price your cookies. Overhead includes both fixed and variable costs.
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To compute cost on a per cookie basis, I simply divide $48 by the recipe yield (30 cookies) which gives me $1.60 per unit (cookie) for labor. My direct costs, excluding packaging, are now: raw ingredients + direct labor = $ per unit (cookie) * but don’t forget that Overhead or indirect costs have to be included to price your cookies.
Nov 23, 2015 - Knowing how to price homemade cookies involves a bit more than calculating the cost of the ingredients per cookie or dozen cookies. Consider all of your food costs and expenses, such as permits, licenses, equipment, kitchen updates (to meet safety standards,) utility bills and expected losses.
First, let’s assume the batch of homemade cookies equals 2.5 bags of Chips A’Hoy,. With that assumption, a batch of homemade cookies that’s equal to the store-bought version costs $1.94. So you’re saving $1.06 for 20 minutes of work, which gives you an “hourly wage” of $3.18.
One suggestion might be to package two small cookies for 25¢, a jumbo cookie or 6 small cookies for 50¢, and brownies, Rice Krispie treats, and other bars are packaged at $1 for a 2″ x 3″ sized bar.
Cookie Favor (3"- 4") $4.00 ea. (Base price) Cookie Favor with Mini Cookie - $4.50 Combo Cookie Favor - $5.00 each Trio Cookie Favor - $5.00 each Large Cookie Favor - Starting at $5.00 Extra Large Cookie Favor - Starting at $8.00 Extra Large Cookie Favor with Coordinating Cookie - Starting at $9.00
I first built up the full cost of making the product, including labor (using standard time to make the thing x cost of my labor, i.e., $ per hour). Then I added a 30% to 50% margin (50% margin = double the cost to get the price) to cover other overhead costs associated with running the bakery AND to make a profit.
Well, maybe you plan to factor in your time at $20 per hour. If you can make 4 batches or 96 cookies in an hour, that's $5 per batch or roughly 21 cents per cookie. In our scenario, this means that each cookie now costs 51 cents to make.
Put it all together to calculate the cost of goods sold {COGS} ingredient cost per serving + direct labor per serving + fixed costs + variable costs. My ingredient cost is .16/cookie; the direct labor is 1.60/cookie; it’s fixed costs are .13/cookie; my variable costs are .04 per cookie. The total cost is 1.93 each.