Pricing Baked Goods for Profit: The Formula That Works
By Maya Alvarez··7 min read
Pricing baked goods isn't about what feels right — it's about a formula that covers ingredients, labor, packaging, platform fees, and a profit margin worth your Saturday.
The 4× food cost rule
Retail price = 4 × ingredient cost. If a loaf costs $3.25 in ingredients, retail = $13.
When 4× isn't enough
Highly labor-intensive items need a labor add-on. Price = (4 × food cost) + (labor hours × your hourly rate).
Sanity check against local prices
Look at 3–5 comparable local bakers. If you're 20% below, you're leaving money on the table.
