Posted in: Opinion
pricing is a big science, so many things to calculate: food cost, overheads, profit but also market related prices, high potential profit for once-off or lower price to create a long lasting client/business relationship!
So start to have your food cost (ingredients per portion) right: $2-3 is a very wide range!
THEN do this calculation: food cost (FD) X 65% = minimum selling price. (eg: $2X1.65=$3.30-min.selling price)
or: final price is equivalent to: FD +15% (oveheads)+55% (minimum profit) (considering your food cost being 35%)
Also remember to add to your costing any extra tool/trais, foil, petrol etc necessary to get the job done. ( let say 5-10% )
As well: do you need to hire extra people for the job? Add it on. Do you need to work extra hours for the job? if you will do it on your extra time, add it on: you could have been doing something else but you stuck at work till late night!
Then you will see, if this price isbelow your competitors or market related you can add as much as you feel :a) right; b) fair c) worth the effort d) try to cash up heavily to buy a new tool/ great dinner/a day at the SPA....
my suggestion? it should be worth the effort and the extra time without being to heavy on mark up..
Remember that unless you are happy at the end of hard work, you will feel very very bitter about it and you will not appreciate what you did.
My few rand (south african money..) worth of knowledge...
Hope it helps