VIC—Cost & Pricing

DO THE MATH

1. Add up all cost of the ingredients and supplies.

2. Calculate number of hours.

3. Calculate the overhead costs.

4. Set your profit margin.

EXAMPLE

Chrissie Boon is owner of Too Nice to Slice, a custom cake shop and teaching academy based in Ontario, Canada, where she also owns a cake supply store and a retail store- front bakery. Chrissie is the director of Icing Smiles Canada, head of the Canadian Cake Decorating Guild, and a Creative Director at Icing Inspirations. Chrissie recently joined the Renshaw Americas team as their newest Canadian ambassador.

1 Ingredient cost

2 Six hours x $20/hour

3 Overhead calculated

4 Profit margin desired

$80 $120 20% 25%

CALCULATE ( 1 ) + ( 2 ) = $200 x ( 3 ) = $240 x ( 4 ) = $200 (FINAL PRICE FOR CAKE)

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