How to Price Your Baked Goods - From Labor to Profit!

In this video, I'll be breaking down EVERYTHING that goes into pricing your products/services for PROFIT. I'll be covering cost of ingredients, time, labor, margin vs. markup, packaging, overhead and PROFIT.
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Timestamps
0:00 Intro
0:17 How to shop for ingredients
2:39 How do you charge for Parchment paper?
4:21 Making Rice Krispies treats
6:56 Calculation breakdown!
7:34 Ingredients
8:31 Packaging
9:16 Overhead
9:49 Labor
10:18 PROFIT

[@healthhollow7218]

Just a tip, if you don’t press so hard on your Krispie treats they will firm up a lot softer and make for a chewier treat that’s easier to pull apart. Pressing down hard can make them tough and hard to bite into. Some people may like them harder though. I guess it depends on personal preference 😊❤

[@LifeWithAlliDaily]

This was good! I'd definitely agree your labor is more than an hour here, bc Your Labor is: your Shopping time of ingredients, prep/cook time, your cutting time after and not only the packaging but also your time cutting and packing and also making tags etc. I Love this channel!

[@TheCakeMamas]

Thanks so much for your feedback! So glad this video resonated with you!

[@healthhollow7218]

I buy my parchment paper at the dollar general for $1 per roll! I get a lot of my plastics, ziplocks, etc from the dollar tree or dollar store. It can sometimes be a lot cheaper this way. Just have to do the math because sometimes a bigger roll can sane you money but sometimes a smaller roll for $1 can be a better deal. Math comes in super handy! 😄

[@jujubrowngaming]

Yes same here

[@TheCakeMamas]

You also have to do the math long-term. How long is that $1 roll going to last you vs. the larger roll and then price compare. Also some people can't afford to buy the bigger roll right off the bat so that's also something to consider.

[@dianachavez5245]

I came across this video and subscribed 👍 tour information is so helpful, people don't know how much things cost and think that products are pricey when I give an estimare. Rather loose the sale than lower my prices or I will be a non-profit organization as you said in your video.

[@TheCakeMamas]

SO GLAD TO HEAR you're NOT trying to create a NON PROFIT! lol Thanks for being here!

[@bosswomantt]

So true. And it's annoying

[@marion6066]

So did I..great video 😊

[@blackswan4486]

Lose

[@carouselbakery1840]

Oh I loved this Janelle ! Yes,it’s crucial to break EVERYTHING DOWN ! And I love you kitchen too ❤️ I was just breaking down cost on old recipes last night. Food prices are going up so things need adjusting 😬

[@TheCakeMamas]

Yes!! I love that you're doing that! Just like corporations do, so do us, small business owners!

[@user-zo9pi3gj1x]

Thank you very much for sharing your knowledge. I am a home baker who is thinking about making creating an online bakery. I have struggled with underpricing before but your video helped break down things clearly.

[@TheCakeMamas]

Yay! So glad you found this helpful! Let me know how I can better serve you!

[@jessicalopez330]

i am only halfway thru & you broke this down beautifully. thank you!!

[@Krazyboutcakes]

This was super helpful Janelle. Thank you so much!! Sharing this link!!

[@TheCakeMamas]

So glad it served you! Thanks for sharing!

[@medicalmary8929]

Thank you so much! I'm so glad I found this video! I got a lot to learn and do. Again, Thank you so much! You are Awesome!

[@mamaaawuku1454]

Very very helpful Janelle. Bless your heart for sharing

[@TheCakeMamas]

you're so sweet! Thank you for being here!

[@sunshinebakery_melinda]

Already watched this when it came out BUT got your email and wanted to watch again just because i love how you explain it all. Thanks again for the great information!!!! ❤

[@TheCakeMamas]

Yay! so glad I can help you on this business journey!

[@SimplyEclore]

Very very helpful ! You highlighted things that I didn’t factor in ! Thank you so much and God bless you !

[@TheCakeMamas]

Yay! So happy to hear! Every penny counts, so count wisely!

[@zelenebahig8531]

Thanks Janelle, I've done some of the costs involved, but you pointed out some things I missed like gas & cleaning supplies so this was great info! I have subscribed and will look for the other information that you mentioned, hope to pay it forward someday. Thanks again!

[@TheCakeMamas]

Perfect! So glad to have you here! Best of luck with pricing! Keep me posted! Janelle

[@user-mn1ry2uk7q]

Happy New Year from Jamaica keep up the good work Bless

[@josephdreamhouse]

Janelle this was such a great refresher for me from culinary school two almost two decades ago. Thank you for the reminder.

[@TheCakeMamas]

It's my pleasure sis! I'm glad it resonated with you!

[@boxedandbougie3194]

Love the break down! I’m excited about PTP and learning more

[@TheCakeMamas]

So glad you found it helpful! Let me know what video you wanna see next!

[@rodsallyvernier8518]

You are amazing!!!! I've been baking for a long time, I wish I'd found you many years ago. Thank You for this tutorial

[@TheCakeMamas]

You are so welcome!

[@Cryptleman]

Brilliant video and very informative!

[@TheCakeMamas]

Glad you found it valuable!

[@ayandadlamini2919]

This was so helpful, thank you

[@TheCakeMamas]

So glad you found it helpful! Make sure to check out all my other pricing videos!

[@adamsfamilyvlog]

Yes, very helpful for myself just starting out into the pastry industry. This makes so much sense. 😊 I will be reviewing your old videos to learn more. I’m so overwhelmed. 😢 But this helps. 😊

[@TheCakeMamas]

it's SO overwhelming in the beginning but by doing research and educating yourself about the industry you're setting yourself up for greater success! You got this!

[@blancafernandezdecordova8277]

Wow! Thank you for your time in letting us know how this works.

[@TheCakeMamas]

My pleasure! I want to level up our industry so we can ALL stop struggling and start making some real progress!

[@nozithelontini5477]

Please do the Overhead video. I'm looking forward to that. Thank you so much for your tips, they're so practical and helpful

[@TheCakeMamas]

YAY! So glad it's helpful! Will do one soon! Feel free to share any other suggestions for topics too! ;) Thanks for being here!

[@joannethomas3116]

Very helpful, thank you

[@angievasquez3796]

Extremely helpful. I'm new to this world and I was struggling with how to cost out the items I'm creating. Thanks!

[@TheCakeMamas]

Yay! So glad it helped you!

[@lisaraesmith6535]

This was super helpful! Thank you!

[@TheCakeMamas]

yay! Glad it was helpful!

[@thutololo8852]

Very helpful thank you so much you saved my life 😍😍😍😍

[@TheCakeMamas]

Yay! So happy to help! Be sure to listen the the new series on BUSINESS TRANSFORMATION that airs Tuesday, February 1 on the PUSH podcast! In the meantime, you can subscribe and listen here: podcasts.apple.com/us/podcast/push/id1483776062?i=1000548936045

[@ValnillasMom]

Very Helpful! Thank you

[@TheCakeMamas]

My pleasure!

[@manmaidsusa]

Very helpful. Mindblown😮

[@TheCakeMamas]

Thanks for the love! I'm so glad it resonated with you!

[@lindabell125]

Just subscribed. Thank you, great informational video.

[@TheCakeMamas]

Yay! There's definitely a LOT of videos like this on my channel!

[@thutololo8852]

Very helpful thank you so much 😍😍you saved my life wow

[@TheCakeMamas]

You're so welcome! let us know how we can continue to help!

[@jadeencarnacion.b2570]

Very nice, thanks so much ☺️!

[@kimreynolds2049]

Great info, thank you!!

[@TheCakeMamas]

My Pleasure!

[@donnamansano5680]

Interesting, thanks for the info. I always wanted to know how to price my good when I make them. Now I know.

[@TheCakeMamas]

Glad it served you!

[@paulajablonski2129]

Ty this was great

[@toosile4u]

Thank you for all of the information, I am now a subscriber. 😊

[@TheCakeMamas]

so glad it served you! Glad to have ya!

[@toosile4u]

@@TheCakeMamas Thank you.

[@gloriouslygifted]

Thank you! Great video;)

[@TheCakeMamas]

Thank you! Glad you loved it!

[@pennydaum4983]

Thank you!!!

[@danapals2669]

Great content!

[@TheCakeMamas]

Thanks so much for the love!

[@shakemasimmons7639]

Thank you for sharing!

[@TheCakeMamas]

It's my pleasure!

[@meganhardin3299]

love your apron! super cute.

[@TheCakeMamas]

Thanks sis!

[@KimGGetsFit]

Well explained!

[@TheCakeMamas]

Thank you!

[@lawanalewis184]

Yes this was definitely helpful. Scary! But helpful.

[@TheCakeMamas]

It's definitely a reality check but it's necessary for any business

[@rochellerawlins4296]

very helpful

[@wandamiller9043]

Very helpful I just you lol, and subscribed thank you.

[@lindsayduvall5476]

Thank you! I can’t wait until PTP opens up again!

[@TheCakeMamas]

Yes! Hope you'll join us! Definitely join the waitlist!

[@TheCakeMamas]

Hey Lindsay! Just wanted to give you a heads up!.. Next Passion To Profit class will open for enrollment soon! First day of class will be Feb 21st! Hope to see you inside!

[@rebeccajones2206]

this vido was very helpful because I have never been sure what ro charge for my product

[@TheCakeMamas]

Yay! I'm so glad this resonated with you! I have TONS more pricing trainings here on KZbin or if you're looking for something a little more next level you can check out my website www.janellecopeland.com for more pricing trainings and workshops!

[@lifeawesome4886]

Amazing

[@nikkibd7345]

it does not matter if the marshmallows are stuck together because they get melted down making Rice treats. So that's a bit pointless just buy what you want or go CHEAP

[@adrianamedina2038]

I LOVE THIS!!! SO HELPFUL...ALSO DO YOU MIND ME ASKING WHAT SIZE OF PANS YOU ARE USING AND WHERE ARE THEY FROM...I LOVE THEM

[@TheCakeMamas]

I got my pans from a local cake store in my area called Bakers Bodega!

[@charlenemack7040]

I am a foodie. I’m probably 80 pounds overweight and will eat just about anything but, I hate the marshmallow rice crispy‘s. I have a recipe that’s over 50 years old it’s rice Krispies peanut butter a little bit of Karo syrup and a small amount of powdered milk. They’re not sickening sweet and they just taste better than the marshmallow ones and you could put chocolate chips in them if you wanted.

[@monil4379]

This information was great, thanks so much! I was doing this last week and had everything with the ingredients, packaging and my hourly rate but I never thought to include things like utilities. I saw on another page that items like mixers, pans and other supplies necessary for baking were also calculated in, is that something you also agree with?

[@TheCakeMamas]

Hey! Thanks for being here! Yes, you should absolutely figure out how to factor in the cost of all your equipment! I can cover that in a future episode!

[@Mewcartoon]

I wish my walmart had ALL that baking stuff

[@Jeweltones99]

Hi! how do you calculate the rollover ingredients onto your next batch if you're not just selling one? What does your spreadsheet look like for that part? Each batch wouldn't cost you the same because you're using leftover ingredients right?

[@TheCakeMamas]

Great question! Video coming next week that will help explain this! But I also have a Tiktok video on Lofthouse cookies with a breakdown that would be super helpful for you! Go check it out: @janellecopeland

[@johnellhawkins2934]

I need money for my senior year of high school so I thought to sell my baking and by watching this I realized that I retained absolutely NOTHING from math cause what?!?!? Imma rewatch it tho cause I need to get this so I can start soon lol

[@michelebostwick3242]

I LOVE those square pans you used!!! Can you tell me what size and brand they are? Thanks for all your guidance. It's really helped me!

[@TheCakeMamas]

It's a 9X9 pan!

[@danaestradford9083]

Hey, thank you for the informative video!! I was just wondering what size pan did you use in this video? I don’t think I heard it in the video

[@TheCakeMamas]

It's been AWHILE since I made this video but it should be a 9" square pan

[@monil4379]

I was just looking into your website as well and was wondering if the 10 tips you supply through email is covered in your KZbin tutorials or if it was additional info that’s not covered.

[@TheCakeMamas]

I'd say it's worth downloading! It's also free, so go check it out!

[@gloriasaenz3752]

This is very helpful! Just a clarification, my 13 year old daughter made some mini Bundt cakes that she plans to sell as a fundraiser for her 8th grade trip. Does the same math apply?

[@TheCakeMamas]

YES!

[@iyahgabriel8028]

3:24 hiii I have a question about the size of the parchment paper being multiplier to 4, why does it have to be multiplied to 4 in the first place?

[@debjax9241]

Her math on the parchment paper is totally confusing! But I think she multiplied by four because she used 4 pieces of paper (two crisscrossed in each pan so that each side of pan is covered). I think an easier way to do the math would be just to divide the cost ($2.67 in her example) by the total length of the paper (40ft) and then charge each customer a price per each ft used. Since all customers may not use the same amount it would be incorrect to assume you need to charge each customer .50 and to accurately calculate the number of customers you need to use the whole roll. In her cost analysis she only charged the customer $0.25 for the parchment paper, so she short-changed herself. Hope this is helpful. And I only commented because I noticed she hadn't responded to your question.

[@jeffkeeth6380]

OMG.😮

[@TheCakeMamas]

that's correct@@debjax9241

[@tonyaakers3149]

Hi Janelle, I have a question Is this pricing for home based cake business or bakery or both? Thank you for your help

[@TheCakeMamas]

This can be applied to both!

[@tonyaakers3149]

@@TheCakeMamas thank you so much ♥️

[@andreayanes7713]

How do you charge for sprinkles ?

[@TheCakeMamas]

I normally look at the ounces I get in each sprinkle container and I would weigh my product before I put the sprinkles on and then weigh it after. It's redundant at first but once you get an idea on how much it would be then you can use that as base

[@shanaemartinez1264]

Do you factor in sales tax to the cost of ingredients?

[@TheCakeMamas]

the easiest way to do it is keep a total of everything you're spending on. You can always add a sales tax percentage once you've tallied everything.

[@debjax9241]

I think it probably depends on what state you're in; in some states food items are non-taxed unless sold as hot. If you're not paying taxes on your purchases there should be no taxes factored into your resale price IMO

[@marissabocanegra]

What size pan is that?

[@TheCakeMamas]

It was FOREVER ago when I made this but I believe it's a 9" square pan

[@PeaceChanel]

Peace.. Shalom.. Salam.. Namaste ..... LaPaz.... 🙏🏻 😊 🌈 ✌ 🌷 ☮️ ❤️

[@1978oldbrownshoe]

Gross margin only factors in COGS though. Not labor or overhead.

[@TheCakeMamas]

You would obviously want to account for your labor, overhead, cost of ingredients and then factor in your desired profit

[@user-ep8pg7rj8n]

It takes you more time to figure out cost of the parchment than getting into to project😅

[@savigrace4631]

Isn’t the labor cost literally the profit?😭

[@TheCakeMamas]

ABSOLUTELY NOT! Labor is what it costs to make it. Profit it was the COMPANY makes after paying all the expenses (including the labor).

[@jeffkeeth6380]

Life's toooo short to be measuring your parchment girl.

[@TheCakeMamas]

not when you may be leaving money on the table!

[@frst78]

I get my ingredients as cheaply as possible, no brand names unless I have coupons or I find it on the clearance rack lol. We have a mennonite grocery store I find things at a huge discount and some bulk baking items cheap too. I'm not brand loyal, I'm cheapskate loyal lol.

[@TheCakeMamas]

Makes sense, and I was too when I first started! As you continue to grow, CONVENIENCE & TIME starts to matter more, so finding a company that carries brands that may be slightly more expensive, but offers reliable DELIVERY outweighs saving a few bucks! (Learned this after MANY YEARS in though!) Good luck!

[@trinitischell1080]

This was so helpful, thank you

[@TheCakeMamas]

I'm so glad I can help!