#4 Nail Down Your Pricing
Of course, I can’t in good conscious tell you how much to charge for your cocoa bombs because I don’t know your cost. However, here are a few things to consider when setting up your pricing. (1) How much does it cost you to make? To know this number, I recommend either buying or collecting the receipts for all of your ingredients, and then figuring out how many cocoa bombs you can make using those ingredients. So, if the chocolate, cocoa powder, marshmallows etc all cost you $10 and you can make 8 bombs that means your ingredient cost for 1 bomb is $1.25 each that is $10 divided by 8. Now, since I don’t want you to work for free. We need to calculate your labor. So, how long does it take you to make those 8 bombs? For this example, let’s say it takes you 45 min from start to finish including packaging the bombs. If you paid yourself $15/hr and 45 min is the same as .75 hours then $15 * .75 is $11.25. Since you can make 8 bombs in that 45 min that means you should divide that $11.25 by 8 and you’ll find that it cost you $1.41 to make one cocoa bomb. So pulling it all together using this example, at a minimum you should charge $1.66 per cocoa bomb if you want to make any profit at all. Don’t forget…the foundation of your price is your cost. So…make sure you get to the bottom of your cost before you set a price.
If math isn’t your strong suit and you’re like whaaaa…how did she just do that and you actually want more pricing help, tap the button below to enroll in the FREE pricing training for bakers, cakers and food business owners.