Food Business Pricing

Pricing Home Food Products: The Math Most Sellers Miss

By Jordan Pierce··7 min read
Pricing Home Food Products: The Math Most Sellers Miss — Food Business Pricing

Pricing is where most home food businesses quietly lose money.

Start with food cost

Track exactly what goes into one unit. Don't estimate — weigh it.

Apply a 3-4x multiplier

3x food cost is your floor. 4x is healthy. Below 3x and labor + packaging eat your margin.

Add packaging and labor explicitly

Packaging is $0.50-$2.00/unit. Labor is whatever your hourly rate divided by units-per-hour gives you.

About Jordan Pierce

Jordan writes about pricing, marketing, and operations for small food businesses, with a focus on bakers and meal prep sellers.

Related reading

More popular resources

Browse all resources →