2 min read
Pricing your products and making a profit is hard when you’re first starting out. The idea of pricing my homemade pies was one of the biggest hurdles I had to overcome. My confidence level was low even though my skillset was high. I knew my pies were delicious, but I was not sure anyone would buy them. At least not for the price I was asking. Sound familiar?
I quickly learned selling food is a lot like selling real estate. The price of a cake, pie or batch of decorated cookies varies. It’s dependent on location and what the market will bear. Plus there’s that cheap cake lady. All those bakers who want to undercut your price. Snatching as many customers as possible with their $20 cakes and $10 pies. You know, those folks willing to step over a dollar to pick up a dime.
Then there’s purchasing everything at the local grocery store. Talk about costly. The ideal thing to do is locate ingredients wholesale. Sounds simple right? It is until you realize getting 50 pounds of flour for $7.89 is only beneficial if you have someplace to store it.
Don’t forget about calculating your cost. The cost for every penny spent. There were times I was so stressed out I wanted to quit. Then I did something rational. I asked for help from a woman who owned a commercial bakery. Elicited help of my daughter, an analytical genius and came up with the right price for my pies.I now help walk others through the process of pricing their products. And in the video below I will give you a sneak peek at of how I priced my pies.
I started my pricing at the top and waited to see what the market would allow. I’m so glad I did. Even though my pies appeared expensive to some, to many customers the price was perfect. Why? I found my target audience, consumers willing and able to pay my price. They could appreciate the quality of the product and the value they were receiving. Remember, pricing is not about a number, it is about what you think your time, effort, and skill is worth. It’s about the value you bring to the customer. It all starts with knowing your worth.
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