Production
What does a loaf really cost you?
In our example, a 700 g country loaf costs €2.44 excl. VAT to produce, i.e. €3.49 excl. VAT per kilo. The figure that matters is yours: it depends on your recipe, your time and your costs.
Worked example
20 loaves of 700 g = 14 kg. Flour 6 kg + 3% waste = €4.57 excl. VAT. 90 min (preparation, watching the bake, finishing, cleaning, packing) at €29.50/h = €44.25. Cost €48.82 excl. VAT → €2.44 excl. VAT per loaf → €3.49 excl. VAT per kilo. At a 35% margin: €3.76 excl. VAT per loaf. Sold at €3.72 excl. VAT, the margin drops to 34.4%: 3.6 cents per loaf below target, €0.71 per batch.
Add to your calculation: sourdough or yeast, salt, water, oven energy, packaging, unsold goods.
Which VAT rate?
The rate for bread in your country, often reduced for food but it varies: your accountant will confirm it.
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