How do you calculate food cost plus profit?

[diabolical_Tanya]

Okay so I baked some dog treats and brought some to a couple friends at work and they strongly believe that I should make them and sell.

In this recession every mickle mek a muckle so I am seriously considering it.

Them not hard to make at all at all the hardest part is the clean up

So any professional chef's or restaurateurs or any one dat bake an sell out there can you give a sista a hand please.

[basint1]

Re: How do you calculate food cost plus profit?

Not sure what "Baked Dog Treats" are. Are they for a pet dog or is it a hot dog snack item like an appetizer ?
Doesn't matter just wondering. Just figure what you spend to make, say 100 of them. List your ingrediants and how much of each it takes to make 100. So say everything added up at what you pay for it at a normal price- not when certain ingrediants are on sale, unless you can always get the "sale price" when you make them. Take the total and divide by 100. Then add at least 20-25% minimum. Maybe even 50%. It depends what you think someone will pay for what you sell.
In other words maybe you can make the item and it is really good, but at the end of the day you have to charge whatever you need to make it worth your time, and it's not feasible/won't sell.

[basint1]

Re: How do you calculate food cost plus profit?

Let's say you can make a "batch" run of 100 treats and it cost you $100 for the run. Say you sell them for $1.25 each and so you make $.25cents or 25% of every dollar invested. On 100 sales you made $25.00 which is a pretty good return. Now if it took you the whole day or several hours of making the things, yes you made $25 (if everyone sold) but was it worth a whole day of work to make the $25 bucks ? If you can whip up the batch in an 2 hours or less, you can sell out each time you make 100, then it's really probably worth your time.

Hope that makes sense.

[diabolical_Tanya]

Re: How do you calculate food cost plus profit?

Thanks JRT that does help alot.

yes it is doggie treats for the four legged friends.

I don't care if I don't make a heap of profit, I just want to be sure I break even + a %

[Peasie]

Re: How do you calculate food cost plus profit?

dis baxide chread should be in di baxide pet forum.

[RichD]

Re: How do you calculate food cost plus profit?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Shebada</div><div class="ubbcode-body">Thanks JRT that does help alot.

yes it is doggie treats for the four legged friends.

I don't care if I don't make a heap of profit, I just want to be sure I break even + a % </div></div>

a=?

[Gen]

Re: How do you calculate food cost plus profit?

<span style="font-style: italic">transferring to business</span>

[diabolical_Tanya]

Re: How do you calculate food cost plus profit?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Shebada</div><div class="ubbcode-body">Thanks JRT that does help alot.

yes it is doggie treats for the four legged friends.

I don't care if I don't make a heap of profit, I just want to be sure I break even + a % </div></div>

a=? </div></div>

a = a percentage profit

[RichD]

Re: How do you calculate food cost plus profit?

i know i appear obtuse but .....

[diabolical_Tanya]

Re: How do you calculate food cost plus profit?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: RichD</div><div class="ubbcode-body">i know i appear obtuse but .....
</div></div>yu looking for a number? mi not sure yet mi haffie si how many treats per batch an how much dat cost and then the current market value.... mi hoping for 10%

[Peasie]

Re: How do you calculate food cost plus profit?

move dis warra warra chread from outta di kitchen nah? cho.

[diabolical_Tanya]

Re: How do you calculate food cost plus profit?

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Peasie</div><div class="ubbcode-body">move dis warra warra chread from outta di kitchen nah? cho. </div></div>WHY?????? it is about food an cooking

[Peasie]

Re: How do you calculate food cost plus profit?

I gwine poll yuh baxide nex week. Yuh watch.

[Nanook]

Re: How do you calculate food cost plus profit?

When I thought I wanted to be a baker I went to tech school. It was great till they told me I had to figure out the cost of each freekin cookie.

how much the flour cost in each cookie
how much the egg cost in each cookie
how much the sugar cost

and so on down the line until you figure the cost of all ingredients per cookie

the cost of running your oven per hour

and so on...to figure out your actual cost, do not forget to add clean up and packaging time!



Pay yourself X amount of dollars per hour if profit is a goal.

[f0rTyLeGz]

Re: How do you calculate food cost plus profit?

I had a small bakery for 15 years. I made desserts for restaurants... 80 restuarants.

The problem with dog treats is that people expect them to be cheap. Maybe the way to make money off of them would be to sell &quot;gourmet&quot; dog treats, and sell them to rich people... or to be able to compete with products in the grocery stores.
Everyone likes fresh bread, and many people produce great breads, but a cake is bread with suger and a few goodies, and you can sell them for four times what the most expensive bread fetches. Dog treats may be at the other end of the spectrum, because you may have to bake a great deal of weight just to make a few dollars.

Other things that are important for a little baking biz in the long run are having good reliable accounts, packaging, getting regular orders, buying ingredients easily and for a good price, and delivery.

Good luck, keep us posted.