Help! Pricing questions

Katie Perry
@katie-perry
08/23/12 10:35:42
16 posts

Hi - I am essentially a hobbyist that is just starting to do some small sales here and there for private parties. I just got a request for a corporate party: Truffles for 100 people, preferably about 12 flavors.

The first question is how many. I figured I would determine that once I had more specifics about the party, but my guess is between 200 and 300. I will take any feedback you have for me on whether or not my estimate is correct.

Secondly, how much should I charge? Generally I charge $1.50 a truffle. For larger orders it seems like the cost per piece should diminish, but I am not sure how far. Also to be honest, doing that many flavors will really stretch me considering that my smallest batch size is 36, and I don't really have an available audience to sell the extras too. With that in mind it makes sense for me to charge more, but I don't want to price myself out of the game. Should I request limiting the number of flavors to make it more economical for myself? Charge more for the variety? Give the customer what she wants despite the personal cost knowing I could see other benefits (future sales)?

Thoughts?


updated by @katie-perry: 04/10/15 23:51:25
George Trejo
@george-trejo
08/23/12 10:46:54
41 posts

If it were me, I'd offer 200 pieces and at most 4 flavors. My very first order was for 100 pieces and I did 6 flavors. It's a huge waste of time, and way too much of a hassle. If you have any upcoming shows or markets you could always freeze the extras and save them for then. Just make sure you use the right freezing technique.

For an order of 100 I would probably stay very close to my retail price. I wouldn't discount until the order was over $500, but that's up to you.

Katie Perry
@katie-perry
08/23/12 10:51:06
16 posts

Thanks Greg! That really helps. If I can cut the flavors back even to 6, that would make a huge difference in cost, labor, everything!

Matthew W.
@matthew-w
08/23/12 13:05:23
10 posts
I would offer the same advice, try to limit the number of flavors and always try to hold your price, work off of your typical batch sizes, account for some extras and if you have a hard time reconciling the price, toss in some of the extras.

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