[Market-farming] Wyatt's Way

Andy Fellenz fellenz at fltg.net
Fri Nov 13 11:12:00 EST 2009


The note below is good for understanding your costs, but the other piece 
of pricing is understanding what people are willing to pay.  You need to 
understand what people are willing to pay also and price your bread 
appropriately.  If they are willing to pay $6.00/loaf and it costs you 
$5.00 - sell it for $6.00 and make a little, because it is pretty much 
guaranteed that you will forget something in figuring your costs and it 
is really costing more than you think, or will cost you more when you 
need to buy new ovens or other equipment. 

Andy

Willie McKemie wrote:
> On Fri, Nov 13, 2009 at 09:59:02AM -0500, Wyatt Jones wrote:
>   
>> I'm about the worst person imaginable for pricing so I thought I'd ask this list what they thought.
>>     
>
> Approach it from a cost perspective.  What is your cost to create the 
> loaf?  Include at least the following:
> 1) cost of ingredients
> 2) fractional value of your kitchen  
>     If you own the kitchen, what would it cost to rent it long enough 
> to produce a loaf?  Or a thousand loaves.
> 3) labor
>     Pay others or pay yourself what you want to earn.
> 4) vehicle cost to and from market
>     Probably around $.25/mile will cover it.
> 5) packaging costs
> 6) selling costs
>     Your time at market.  Your time traveling.  Time preparing to go to 
> market.
> 7) "shrink"
>     You want to be paid for the product not sold, including samples.
>     
> If you are happy working for the value you place on your labor, then 
> you need not apply a mark-up.
>
>   
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