You’re finally ready to take the plunge and open your own cookie business. Great! That must mean you make some really great cookies (and you can send one my way whenever you’d like). The hard part is knowing how to price homemade cookies so you don’t end up in the negative.
There are a few things to consider when pricing homemade cookies. The ingredients, how much time it takes you to make and bake, and the complexity of the cookie should all be accounted for. Typically, this will leave you at anywhere between $2 and $6 per cookie.
Hey, there! My name is Michelle and I am a home baker that loves making cookies. In fact, I think it is my favorite sweet treat to create. Throughout my years of experience, I have learned how to correctly price homemade cookies for a profit.
Let’s learn about how to price homemade cookies, bakers!
- How to Price Homemade Cookies: What to Consider
- Final Words
How to Price Homemade Cookies: What to Consider
When it comes to pricing homemade cookies, there are a few major things to consider. While the cost of your supplies and the complexity of the cookie are both very important aspects, you shouldn’t forget that you deserve to account for the hard work you put into baking them.
With that in mind, let’s dive into the different elements of pricing homemade cookies.
1. Cost of Baking Homemade Cookies
When it comes to the cost of your cookies, start by figuring out how much you’re spending on the cookie. For example, a simple chocolate chip will use flour, sugar, chocolate chips, etc. A frosted cookie will require a different set of ingredients and frosting, causing the price to be higher.
Don’t forget to look beyond ingredients, though. You have other items that need to be accounted for, such as:
- Equipment – No, your clients aren’t going to pay off your pricey mixing stand. Well, at least not all at once. Adding an extra $0.05 charge per cookie will help you to pay off your much-needed equipment in the long run.
- Packaging – Packaging is another important element of selling homemade cookies. You can be as elaborate or basic as you’d like, but don’t forget to extend the cost to your customer. Keep it low and expect the pay-off to occur in the long run, like equipment.
There are some business elements that you need to consider, too.
- Building – If you’re planning to own or rent a building to bake cookies, that will factor into the price of your cookies. Don’t forget to include bills like gas, electricity, etc.
- Marketing – It does you no good to try and sell homemade cookies if nobody knows about them. So, marketing will be a big part of your new business. Marketing takes up a lot of time and money.
- Taxes – Now that you’re a business owner, you have to start thinking about owing taxes rather than getting a tax return. Yes, it’s a big bummer – but not if you plan ahead. Save money aside for taxes and tack on a few extra cents per cookie to help pay for it.
- Waste – Not every cookie is a good cookie. Account for potential cookie waste when pricing.
2. Your Time and Hard Work
Even if you love baking cookies like I do, at the end of the day, it’s still work. You’re spending hours in the kitchen mixing ingredients, baking, and sometimes decorating. That said, don’t forget to account for your hard work when it comes to pricing homemade cookies.
This is where the complexity of a cookie comes into play. For example, it might be really easy for you to whip up some chocolate chip cookies. Great! You can make a whole lot and sell them for around $2 or $3 dollars (or sell in bulk at $15 to $20 per dozen).
But what about those complex, beautifully designed, and patterned cookies? Obviously, these exquisite cookies should cost more. Depending on the complexity of the ingredients, design, or both, you can get as high as $6 per cookie (or give a slight discount per dozen).
3. Test and Adjust
Now you know how to price homemade cookies. Start with the ingredients, add in other expenses like equipment and taxes, and account for your time and hard work. Think you’re ready to take the price list to the street?
The best thing to do is to test the waters. Start selling your cookies. If people are buying without a problem with the pricing, then you’ve done a swell job. If you’re getting hardly any business or no business at all, you might want to drop the price a bit.
Here’s where it gets tricky, though. You don’t want to be so overpriced that people don’t want to buy. You also don’t want to be so underpriced that you’re being taken advantage of. Know your worth and stick to it. This may take a little guesswork at first, but you’re sure to nail it.
Pricing homemade cookies comes down to costs, complexity, and time. If you’re still wondering how to price homemade cookies, keep reading! Below are some unique commonly asked questions you might want to know the answer to.
You have a price, but how do you get people to buy them? There are plenty of choices for selling homemade cookies. Sell on social media such as Facebook. Take your business to the local farmer’s market. Open up an Etsy shop or create a website where people can find you.
The first thing to do is to consider the price of a single cookie. Then, you can find out how much to sell for a dozen. For example, if your cookies are $2 each, you should give a discount for a dozen. Somewhere between $15 and $20 is a good number.
Yes, you can make money selling cookies. The hardest part is getting people to buy them. But if your cookies are delicious and you have the right marketing tools, you can definitely make a lot of money selling homemade cookies.
How do you calculate the baking costs?
Essentially, you’re going to write down all of the ingredients you used for the cookie and divide it by the total volume. Then, you will multiply it by the equivalent amount you used in your recipe. Add on a few extra dollars and cents to make sure you’re making a profit, not just covering expenses.
Sugar cookies tend to cost more because they’re decorated. Small cookies might be $3 or $4 while larger ones can get up to $6 or $7. It all depends on the design of the cookie.
When it comes to price homemade cookies, it’s pretty simple. You want the price to cover the cost of your ingredients, equipment, and other expenses. Your hard work and effort should also be accounted for in the price. In the end, homemade cookies are anywhere between $2 and $6.
Have you ever made and sold homemade cookies? How much did you sell them for, and did you make a profit? Share some more tips and tricks for pricing below!About Michelle