Production
Your cost price per kilo (or per litre)
Work out the full cost of your batch, then divide it by the weight or volume you can actually sell. That gives your cost price per kilo; add your risks and fees and you have your floor price.
The formula
Cost price per kilo = batch cost ÷ saleable kilos produced
Floor price per kilo = cost price per kilo ÷ (1 − risks − fees)
Recommended price per kilo excl. VAT = cost price per kilo ÷ (1 − target margin)
Floor price per kilo = cost price per kilo ÷ (1 − risks − fees)
Recommended price per kilo excl. VAT = cost price per kilo ÷ (1 − target margin)
Worked example
20 loaves of 700 g = 14 kg. Batch cost €48.82 excl. VAT: a cost price of €3.49 excl. VAT per kilo. With 2% risks and 1.2% fees, the floor price is €3.60 excl. VAT per kilo. With a 35% margin: €5.37 excl. VAT per kilo.
Mistakes that cost you
- Dividing by the weight of the dough or the full vat, instead of the finished, saleable weight or volume.
- Forgetting packaging losses (vat leftovers, spoiled bottles, damaged packaging).
- Selling by the kilo and by the piece without checking that both prices give the same margin.
Same for litres?
Yes: replace kilos with the litres actually bottled or jarred. In the full calculation, choose the “kg” or “litre” unit and enter the kilos or litres produced as the quantity.
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