How do i do costing?

@jazel_juan (15767)
Philippines
March 23, 2011 10:51pm CST
I am planning on making this food / snacks and plans on selling it..the thing is i do not know how to do its costing, like how much per piece or much per whole... am so bad at math!
1 person likes this
5 responses
@km2011 (28)
• Philippines
18 Jul 11
Here's how to do it.. 1. decide on what you want to sell. Make sure you have a target market(people who will most probably buy from you). 2. Look for places and stores where you can get the ingredients at their cheapest. 3. Decide on how many pieces or how much food you are going to cook for a certain period(day or week). 3. Decide on how many pieces or how much food you are going to cook for a certain period(day or week) 4. Add the cost of all the ingredients based on your estimates on step number 3. Also consider adding other elements in your computation such as transportation, power cost(electric stove), etc. 5. The sum of the entire cost of expenses will be divided according to the pieces or how many plates/servings of the food has been made. SAMPLE SCENARIO: Food: Pasta Puttanesca Quantity: 6 plates Sample Ingredients + Sample Cost: (***Note: this is not the actual complete ingredients and price) - Pasta: $1 - Olives: $2 - Capers: $1.20 - Tomato Sauce $2 - Garlic $0.80 - Anchovies $3 - Olive Oil $1 - Other expenses $4 ____________________________ TOTAL $15 Pricing: $15.00 / 6 plates = $2.50 per plate Principal Amount: $2.50 per plate Selling Price: $5 per plate (this would depend on how much you'd like to sell it for.make sure to be reasonable in setting the price.) Hope this helps
@km2011 (28)
• Philippines
18 Jul 11
lol..sorry i typed item number 3 two times...
@ddaguno (3110)
• Philippines
24 Mar 11
It depends on how much you spent in making them. Divide the total cost depending on how many pieces or servicnes you produce. You should also check the market for the value of how much other people sell it. You wouldnt want to go to low or else the people will think your product is no good but you would want to price it too high also or else they wouldnt buy from you.
@staria (2782)
• Philippines
24 Mar 11
Agree and I suggest you buy ingredients in wholesalers so that it would be a lot cheaper.
@KrauseHome (33385)
• United States
27 Mar 11
Well when it comes to stuff like this a lot of it really depends on what type of food you are interested in making, how much it costs to make, and the price that someone is willing to pay for the item as well. If it is an item like that is sold in a restaurant regularly you might want to compare with theirs and keep at a price around that if you can. Just remember when selling something you made it may take time for the idea to kick off so be patient and do not give up.
@globaldoc (860)
• Philippines
25 Mar 11
You need to have the total cost of all materials, then the labor costs. Then, compute how many pieces or quantity per serving it will result in, then divide. After that, you will already have the unit cost,so you just add your margin. If you have excess profit, i will always be happy to help you. You can always send it to me.
@rosdimy (3936)
• Malaysia
24 Mar 11
Do not forget to add the cost of packing material if you use any, transportation charges, and washing up cost. Avoid making the mistake of multiplying the profit of one snack with the total number of snacks produced to calculate your total profits. Take into consideration possible rejects, and possible self consumption. Deduct at least 5 from the total made.