Reply to "SUGGESTION: Clips to include pricing and decorating time?"

Originally Posted by UUjerri:

Oh I think I posted in an odd place. I will post here now:

 

Julia, what is the formula you follow when pricing your cookies?

I don't sell my cookies any longer, but I basically followed the cost-based approach that Aymee VanDyke is laying out in her From Dough to Dollars pricing series on this site. I start by figuring how long it takes me to make/decorate (from mixing dough to bagging) a standard size batch of a certain cookie design. I apply an hourly labor rate to those hours (what I pay my employees or me) to determine a labor cost; then I add the materials cost; then I mark up that sum at least 100% (double it) to cover my overhead and make a profit. (But I had a lot of overhead, as I had a separate shop and did not work out of my house, so markups can vary.) It makes little sense to price a highly decorated cookie based on its size (provided the cookies aren't huge), as it's the labor cost that is the real cost driver and ultimate price driver. Aymee's series isn't finished yet, but she explains how to compute all of these things in the first two parts of it, here: http://cookieconnection.juliau...rom-dough-to-dollars

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