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Author Topic:   cal food cost
boford
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Posts: 56
From:Midland, Tx
Registered: Aug 2006

posted September 11, 2009 03:53 PM     Click Here to See the Profile for boford   Click Here to Email boford     Edit/Delete Message   Reply w/Quote
Ive been makeing cookies alot here latly been a hit where ever ive taking them. So it kind of got me starting to think what if i sell them. So how would you go about cal the cost of something like this.

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Ira
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Posts: 1115
From:Portland, Oregon
Registered: Jun 99

posted September 16, 2009 01:19 AM     Click Here to See the Profile for Ira     Edit/Delete Message   Reply w/Quote
Making products and reselling them is what my business is all about currently. We're starting to gear up to start catering too, but the market is pretty fierce in that right now.

Anyway, most food products have about a 50% food cost. Therefore if all your ingredients cost you $2/lb you resell it for $4/lb. Cakes and cookies usually have a lower food cost though - otherwise you'd be buying fresh cookies for a quarter at stores. That type of thing is generally best to find a grocery store and/or bakery that already sells fresh cookies and check out where your local market currently stands. Remember that whatever you sell to a grocery store then gets marked up another 30-40% (you sell a cookie for $1 and they would resell it for $1.35). Small businesses don't need nutritional facts, but you do need to follow federal & state labeling requirements and would need a bar-code (I can share more about that if you want). Stores generally want you to carry product insurance too, but that doesn't generally cost much over your regular business liability insurance.

Also keep in mind that if you want to get into grocery stores, start off finding locally owned stores (it's about impossible to get into the huge chains), then start on the medium chains and natural food chains (like Whole Foods).

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