how to break overhead expenses for each dish in restaurant baskets |
Especially for novice basket designers, pricing a gift basket for profit can be a challenge.The tendency at the beginning was to get business and the price was too low.But this strategy may make you lose sight of the profit.You want to price fairly, competitively and show your skills to the market with confidence.The tips below are designed to help you make pricing decisions that are conducive to success.Accounting of material costs.It is critical to record your expenditures on inventory.Set up a spreadsheet on your computer and enter every charge to make the basket.These include: basket, cellophane, bow, filler, tape, label and the actual gift you put into the basket.Continue to enter the fee in steps 2 to 4 using the spreadsheet.Enter your overheads when planning to price your gift basket.If you make baskets at home, including items such as your business telephone line, fax-related fees, printer ink, paper, stamps, business cards and part of your utility, rent or mortgage.If you have an actual store that includes rent and utilities.Don't forget to state the number of miles you drive on the car, especially if you provide delivery.Enter your labor fee.Include yourself and any staff you have.It's easy to know exactly what you pay to your employees, but the boss sometimes ignores the explanation of your own labor.You want to be fair to yourself, so include personal hourly pay when calculating labor costs.Promotional expenses are recorded.What is your advertising cost?What did you list on the phone book?How much did you spend on web hosting?How about the signboard, flyers and table rental fees at the Crafts exhibition?Build your "break even" point.Once you have calculated all of the above, you will know the minimum price to be charged for each gift basket without losing money.A simple formula is to divide your total cost by the number of baskets you create.Finally, decide the profit margin you are satisfied.This is the percentage of the break-even cost you charge to see the profit.A useful formula is to double your labor costs.For example, if the labor force reaches $12 per basket, you will sell each basket for $36.If the price is 30 to 50% higher than the balance of payments, your gift basket price is on the right track.
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