Question 4 of 5
You must factor in all four of these categories to price products correctly.
- Direct Cost (Raw ingredients, packaging, equipment, etc)
- Indirect Cost Kitchen rent, utilities, business subscriptions, advertising fees, etc)
- Labor Cost (The hourly wage you pay yourself or employees to make the products you sell)
- Profit Margin (A set fee or percentage of sales you collect apart from your labor wage in order to grow your business)