Pricing Your Products: A Baker's Guide
Practical pricing strategies for bakeries — target food costs by product type, markup formulas, and how to use BakeOnyx reports to maximize margins.
The #1 question bakers ask: "How much should I charge?" Here's a practical, numbers-driven guide.
The Pricing Formula
Ingredient Cost + Labour + Overhead + Profit = Sell Price
BakeOnyx calculates the first three automatically from your recipes and settings.
Target Food Cost by Product Type
| Product | Target Food Cost | Why |
|---|---|---|
| Custom Cakes | 20-28% | High labour justifies premium pricing |
| Cupcakes | 25-30% | Moderate labour, good volume |
| Cookies & Biscuits | 20-25% | Low labour, high margin |
| Bread & Rolls | 30-38% | Lower markup but high volume daily |
| Wedding Cakes | 15-25% | Premium service, consultation, delivery |
| Wholesale | 40-50% | Lower margin, guaranteed volume |
How to Price Using BakeOnyx
- Get ingredient costs right at /dashboard/ingredients
- Create recipes with accurate quantities — watch cost calculate in real time
- Check cost per serving — this is your baseline
- Apply markup: if cost is $1.25 and you want 30% food cost, sell at $1.25 ÷ 0.30 = $4.17
- Check Food Cost report at /dashboard/reports to verify actual percentages
⚠️ When to Raise Prices
- Food cost consistently above 40%
- Ingredient costs have increased (check PO history)
- You've added services (delivery, custom decorating)
- At least review every 6 months — raise 5-10% at a time
💡 Pro Tip
Ask Bake Buddy: "Which of my products have the lowest margins?" — it analyzes your entire catalog instantly. Don't forget labour and overhead — ingredient cost alone is NOT your true cost.
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