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market-farming - Re: [Market-farming] Wyatt's Way

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  • From: Andy Fellenz <fellenz AT fltg.net>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Wyatt's Way
  • Date: Fri, 13 Nov 2009 11:12:00 -0500

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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