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Entrepreneurship:  Help me with cost of Muffins to sell  |
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Room To Grow
True Blue Farmgirl
974 Posts
Deborah
Kingston
Georgia
USA
974 Posts |
 Posted - Jul 31 2009 : 6:57:01 PM
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Hello, I have been asked to make muffins for a local private coffee shop. They are a small shop but they are doing well. I am going to be making the large muffins. My husband says that they will probably sell them for 3.00 a muffin. I have given one of the owners samples of them. I am going to be making Blueberry, Chocolate Chocolate Chip, and Pumpkin. They loved the samples. They also said I have to package them with the clam shell packaging. The only thing I need is what to charge the owners? I will be making 18 muffins to see how they sell. Then they will tell me how many I need to make weekly. I thought I could sell the 18 for $40.00. What do you ladies think????
Thanks
Deborah
we have moved to our farm...and love it |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Jul 31 2009 : 10:51:41 PM
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Usually shops double or triple the cost of what it takes to buy the items. Another good ear mark is that shops try to get a 150% profit margin.
So if you go with the 150% ear mark, each muffin would be sold to the store for about $2.
If you go with doubling, $1.50
if you go with tripling, $3.
How much do you have to pay for the clamshell packaging? Can you cut packaging prices by buying in bulk at Costco or somewhere? Did you ask them how much they will be selling them for or are you just guestimating? Do you have to print labels with ingredients and what about having your kitchen certified by the health department?
It sounds like it could be an AWESOME opportunity, but my accountant brain is kicking in and there are some things you really should get hard facts about. I don't think it would be considered bad manners to ask them flat out what they will be charging. Also you should consider doing a cost analysis of actually making the muffins. Make sure to account for time baking, electricity or gas used to bake the muffins and ingredients including the clamshells. How much does it cost to make each muffin? Give yourself at least a 150% profit margin and that can be your selling price to the store.
Hope those thoughts help! And feel free to junk any that don't sound good! ;D
Alee
Farmgirl Sister #8
www.awarmheart.com
www.farmgirlalee.blogspot.com
www.allergyjourneys.blogspot.com
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Room To Grow
True Blue Farmgirl
974 Posts
Deborah
Kingston
Georgia
USA
974 Posts |
Posted - Aug 01 2009 : 05:35:37 AM
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Alee, WOW!!!! you have a great brain for these things. I havent asked them how much they will be selling them for and yes I can get the packaging at Sams or Costco. I dont have to put anything on the packaging for ingredients etc. And I am not sure if I would have to get my kitchen certified. I will alos make sure I put in the cost of baking time , electricity, I did put the cost of ingredients. I think they are seeing how it goes first. Then they will go from there. They are also considering opening another location. With this location they said they would put a small kitchen. I can always cook them there and not charge as much. Plus ask for hrly wage for my time cooking them. Thanks for the information
Deborah
we have moved to our farm...and love it |
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JojoNH
True Blue Farmgirl
1984 Posts
Joanna
Dunbarton
New Hampshire
USA
1984 Posts |
Posted - Aug 01 2009 : 06:09:01 AM
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After reading your post, the business side of my brain kicked in and said " you should be looking into wholesale accounts to purchase your items/ingredients" Simply because places like costco are still making a profit off of you. . . which means you can do better with your expenses. If the coffee shop has ordered 18 to see how they do, why not split the selling price?? If they sell them for $3.50 each you would receive $1.75 per muffin or $31.50 total.
Be sure to figure out all your expenses before quoting your price. Such things as delivery costs.. . even if you go pick everything up, you still need to put gas in your car and there are vehicle maintenance costs as well as insurance. Want to see you make money at your new venture!!! Hmmmm, Pumpkin muffins are my favorite. . . to bad I do not live closer. . . I would be a regular!!
Joanna #566
JojoNH
http://www.CountryCents.com
http://CountryCents.Blogspot.com
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Entrepreneurship: Help me with cost of Muffins to sell |
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Help me with cost of Muffins to sell
