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How to Price Artisan Bread — Wholesale & Retail Guide

A sourdough loaf costs $1.50-3.00 in ingredients. Retail price: $6-12. Wholesale: $3.50-6.00. The math works differently depending on your channel.

The Formula

Flour Cost × Baker's Percentage Factor = Ingredient Cost. Then add Labour ÷ Loaves Per Batch.

Bread is flour-heavy. Flour typically represents 40-50% of ingredient cost. Baker's percentage makes scaling intuitive. Labour per loaf drops significantly with larger batches — a baker making 50 loaves spends almost the same time mixing as making 20.

Example:

5kg flour batch (15 loaves): $3.75 flour + $2.25 other ingredients + $30 labour (2hrs) + $9 overhead = $45. Cost per loaf: $3.00. At 55% margin retail: $6.67. Wholesale at 40% margin: $5.00.

Cost Breakdown

Ingredients (flour-dominant)

25-35%

$1.50-3.00 per loaf (flour, water, salt, starter/yeast, seeds)

Labour

30-40%

Sourdough: 15-30 min active time per loaf (stretched over 12-24hrs)

Energy (oven)

5-10%

Gas/electric oven running 1-2 hours per bake. Often overlooked.

Profit Margin

40-55%

Retail commands higher margins; wholesale is volume-based

Quick Reference Pricing

ItemIngredient CostSuggested RetailMargin
Standard sourdough loaf (800g)$1.80-2.50$7-1068-78%
Specialty loaf (olive, walnut, seeded)$2.50-4.00$9-1464-78%
Baguette$0.60-1.00$3.50-5.0071-88%
Focaccia (full sheet)$3.00-5.00$12-1867-83%
Wholesale sourdough (per loaf)$1.80-2.50$4.00-6.0038-69%

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Margin Benchmarks

Farmers market (retail)

50-60%

Direct to consumer. Higher price but factor in market fees, transport, and unsold inventory.

Wholesale to cafes/restaurants

30-40%

Lower margin but guaranteed volume. Minimum 10-20 loaves per delivery.

Subscription/CSA model

45-55%

Predictable demand reduces waste. Slight discount for commitment.

Common Pricing Mistakes

Not accounting for time in sourdough

Sourdough takes 12-24 hours total. Even though active time is 30 min, your oven and space are occupied. That has a cost.

Fix: Calculate cost per oven-hour. Include fermentation space as overhead.

Pricing wholesale the same as retail

Wholesale should be 40-50% less than retail. If you can't profit at wholesale prices, say no — don't subsidize cafes with your margins.

Fix: Set a wholesale minimum (10+ loaves) and a clear wholesale price list.

Ignoring waste/returns

Bread goes stale. Budget 5-10% waste into your pricing. Day-old bread at 50% off is better than throwing it away.

Fix: Build a 5-10% waste buffer into retail prices. Have a day-old pricing strategy.

Seasonal Pricing Adjustments

Holiday season (Nov-Dec)

+10-15%

Specialty breads (stollen, panettone, challah). Premium ingredients and longer prep.

Summer farmers markets

Standard

Peak sales volume. Stick to standard pricing but maximize batch sizes.

Catering season (spring/fall)

+5-10%

Corporate events, weddings. Bread baskets and specialty orders.

Frequently Asked Questions

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