{"id":2357,"date":"2023-07-11T09:52:56","date_gmt":"2023-07-11T09:52:56","guid":{"rendered":"https:\/\/wpdev.bigredstar.uk\/?resources_content=new-resources-content-title-20"},"modified":"2026-01-06T15:47:51","modified_gmt":"2026-01-06T15:47:51","slug":"new-resources-content-title-20","status":"publish","type":"resources_content","link":"https:\/\/wordpress.keylink.org\/?resources_content=new-resources-content-title-20","title":{"rendered":"Costs & Pricing: A Beginners’ Guide\u200b"},"content":{"rendered":"\t\t
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Costs & Pricing: A Beginners' Guide<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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For those just setting out as chocolatiers, this guide will give you a few tips on what to consider when planning your business and setting prices.<\/i><\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Knowing Your Costs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Before you can set prices, it\u2019s important to have a full understanding of all your costs. If you just sell at what you think the market will bear, or guess at the right price, you might stumble on the best price by accident, but it\u2019s more likely that you\u2019ll under-estimate your costs and risk becoming a \u201cbusy fool\u201d. Worst case, it might even result in you going out of business.<\/p>

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Step 1 - Know Your Fixed Costs<\/h6>\t\t\t\t<\/div>\n\t\t\t\t
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Before you start, you need to calculate what your overheads are, preferably including your own salary. This is then the target figure you need to make in gross profit to break even. If you initially calculate it on a monthly or yearly basis, you can then translate that into a daily fixed cost, for convenience.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Step 2 - Know the Variable Cost of Your Products<\/h6>\t\t\t\t<\/div>\n\t\t\t\t
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You can do this by costing out the ingredients, packaging, etc. required to make a batch of the product. You should also measure how long it takes you to make the batch and add that in at the appropriate hourly rate. For each product you make, you should end up with a cost per kg or unit.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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Step 3 - Know Your Production Capacity<\/h6>\t\t\t\t<\/div>\n\t\t\t\t
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If you are making only a single product or type of product, e.g. chocolate bars or pralines, then this will be the number of bars or kgs of pralines you can make from start to finish each day.<\/p>

The more different products you make, the more complicated this exercise becomes, because you don\u2019t necessarily know how much of each you might be required to make. However, as you are likely to make products in batches, you can estimate your capacity by saying that I can make, e.g. 3 batches of bars OR 2 batches of moulded pralines OR 4 batches of dipped pralines, in a day.<\/p>

Alternatively, you might say I can only make one type of product in one day, so if I make bars, I can make 200, if I make moulded pralines, I can make 3kgs, etc.<\/p>

Once you have worked out your daily fixed cost, the variable cost of all the products you are considering making and how much of each you have the capacity to make, you\u2019re ready to set prices.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Setting Your Prices<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Setting the right price is a balancing act, because you will always have a number of different factors to take into account, all of which will have an impact on how much you might be able to sell. A few things worth considering are:<\/p>