If you’re a home baker or own a cookie business then you have probably struggled with knowing how to price homemade cookies. After years of selling home-baked goods and guessing at my cookie prices, I developed a simple process for pricing homemade cookies that covers all your costs and makes a profit for your business.
A good starting point for pricing homemade cookies is usually between $1 to $2 per cookie, but the final number may vary depending on your location, your target demographic, and the uniqueness of your cookies. Lastly, bear in mind that it may take some experimenting before you land on the perfect price.
The first thing to do is keep track of the cost of your ingredients
Do you know how much you pay for your ingredients like brown sugar and chocolate chips? If not, this is the first place to start.
Your ingredient costs can fluctuate day by day, so keeping track of how much you are paying for your main ingredients will help you know when it’s time to raise your prices.
Pro Tip– keep a list of all the ingredients you buy. Include the size of the container and how much you paid for it.
Now it’s time to take a look at your cookie recipe and add up the cost of each ingredient. The easiest way to do this is to convert your recipe to weight. It’s much easier to calculate the costs by weight when your recipe units match the units on the packaging you buy.
You can weigh your recipe by putting your ingredients on a food scale, or you can look up the weight of your recipe measurements online.
When you’re done converting your recipe, you should have a price that it costs you for the ingredients used.
What is a good profit margin for decorated sugar cookies?
The profit margin for cookies varies widely based on your target market, your skill level, and your reputation. If customers are willing to pay more for your cookie designs then you can make a bigger profit.
In my group coaching program, the Bake Better Academy I recommend that bakers aim for a minimum of 30% profit. This means that if the cost of each cookie is $1, they should sell it for $1.30. (Remember that the cost includes ingredients, packaging, labeling, labor, and fixed and variable expenses)
Best soft chocolate chip cookies, how much does 1 cookie cost? 2022 ingredients cost
FAQ
How much should I sell homemade cookies for?
How much does a homemade chocolate chip cookie cost?
How do you calculate how much to charge for cookies?
What do you charge for cookies at a bake sale?
How much does a Dozen chocolate chip cookies cost?
One of the biggest problems of buying and shipping a dozen chocolate chip cookies is the price. Many cookie bakeries charge around $7 per dozen. If you can make your cookies for a penny more per cookie, it will still be cheaper than buying them from a baker. The average cookie costs about $3 per cookie.
How much does it cost to sell chocolate chip cookies?
Assuming you are selling a dozen chocolate chip cookies, you can expect to make about seven dollars per dozen. The profit margin for the dozen cookies that you sell will be between six and seven percent of the total cost. Therefore, you must calculate your costs before setting a price for your cookies.
How much does a cookie cost?
While a single cookie may not cost much, a dozen cookies will cost anywhere from $10 to $25. Adding the cost of time to the cost of ingredients will also increase the cost per cookie. For example, if you bake four batches of 96 cookies an hour, your cost per batch will be $5 per batch, or about 21 cents each.
How do you Make A Dozen chocolate chip cookies?
Ingredients for a dozen chocolate chip cookies include five pounds of flour, one pound of butter, two teaspoons of baking soda, 26 ounces of salt, six pounds of sugar, 1.5 pounds of brown sugar, three dozen eggs, and two ounces of vanilla extract. Adding chopped walnuts and semi-sweet morsels to a dozen cookies will add to the cost of the batch.