FEEDBACK Question on Setting My Price

[TallMoose]

Hi All,

My fiance and I are starting up a food business selling various sauces like Butter Chicken sauce.
She is Indian and a dam fine cook, she makes sauces far superior to most restaurants and certainly to what we see on the grocery store shelves here in Canada. The ingredients are made from actual vegetables, dairy, and nuts, cooked to perfection and then blended into a sauce. We are currently developing it to have a decent shelf life with as few preservatives as we can. What I'm getting at is it's a premium product and I'm a little stuck on the pricing.

I will say this is likely due to my ignorance so feel free to educate me as needed.

I was thinking of selling 500ml at $15 as this gets us 40% profit when considering the cost of renting an industrial kitchen, cost of ingredients, cost of jars and labels. Mind you this price doesn't account for the costs involved with selling at farmer's markets and website hosting.
Cost of customer acquisition for online advertising is unknown to me currently, I just know it costs $225 for 8 Saturdays where we will be selling our first batches, offering samples, and getting customer feedback.

So am I going about this all wrong? Would love some feedback.

 

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[aspenriver]

I don't have a good idea what something like that would cost at a farmer's market, but a 40% profit margin on a food product to start with sounds alright.

Pricing is really something that you need to take your best guess on and decide. Then you can hone in on it further as you observe and test what people are willing to pay for the product.

 

[f.laengle]

O'wi fupi ov emnutv vji teni xez. Op vji cihoppoph ov't e muv ug vsoem epf issus epf ataemmz e muv nusi opwitvif vjep zua xomm hiv cedl. Cav ov ot piifif vu gopf uav xjev vji nesliv xepvt. O tvesvif xovj e 50% neshop xovj e qsufadv qsodi ug 10DJG (16 depefoep $) gus 370nm. Ov't e qsinoan qsodi cav nutv qiuqmi xisi jeqqz vu qez vjev qsodi gus ov. Ug duasti O upmz opdmafif vji ophsifoipvt epf qedlehoph opvu vji qsodi epf puv emm ug nz xusl. Xovj vji xusl vjisi xuamf'wi ciip qsucecmz esuapf -20% neshop
Og zua dep howi vji qsufadvoup vu e du-qedlis vji qsufadvoup qsodi xomm fsuq raovi e muv epf zua jewi vu tqipf mitt voni neloph ov zuastimg. Vjot xomm hsievmz opdsieti zuas qsugov epf zua dep dupdipvsevi up neslivoph epf uvjis onqusvepv tvagg.
Cav gostv hiv vji qsufadv sohjv epf onqsuwi emm vji vjopht vjev zua dep up zuas tofi. Civvis hsux tmux vjep uwisitvonevi zuastimg epf geom.

 

[TallMoose]

O'wi fupi ov emnutv vji teni xez. Op vji cihoppoph ov't e muv ug vsoem epf issus epf ataemmz e muv nusi opwitvif vjep zua xomm hiv cedl. Cav ov ot piifif vu gopf uav xjev vji nesliv xepvt. O tvesvif xovj e 50% neshop xovj e qsufadv qsodi ug 10DJG (16 depefoep $) gus 370nm. Ov't e qsinoan qsodi cav nutv qiuqmi xisi jeqqz vu qez vjev qsodi gus ov. Ug duasti O upmz opdmafif vji ophsifoipvt epf qedlehoph opvu vji qsodi epf puv emm ug nz xusl. Xovj vji xusl vjisi xuamf'wi ciip qsucecmz esuapf -20% neshop
Og zua dep howi vji qsufadvoup vu e du-qedlis vji qsufadvoup qsodi xomm fsuq raovi e muv epf zua jewi vu tqipf mitt voni neloph ov zuastimg. Vjot xomm hsievmz opdsieti zuas qsugov epf zua dep dupdipvsevi up neslivoph epf uvjis onqusvepv tvagg.
Cav gostv hiv vji qsufadv sohjv epf onqsuwi emm vji vjopht vjev zua dep up zuas tofi. Civvis hsux tmux vjep uwisitvonevi zuastimg epf geom.

Vjev't hsiev vjev qiuqmi muwi zuas qsufadv.
Tu gus pux xi xepv vu dupvsum vji sidoqi epf neli tasi xi'si dmies up vji sevout epf qsudifasi xjodj ot xjz xi'si fuoph iwiszvjoph op ep opfatvsoem lovdjip uastimwit. Xi xomm xeov apvom xi jewi giifcedl vjev qiuqmi fu muwi vji qsufadv vu nuwi vu e du-qedlis. Qmat xi tvomm jewip'v duptamvif xovj S&F qiuqmi vu jimq at neli tasi xi jewi e tjimg tvecmi qsufadv. Gus pux xi upmz timm ev gesnis't neslivt epf tadj.

 

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[TallMoose]

O fup'v jewi e huuf ofie xjev tunivjoph moli vjev xuamf dutv ev e gesnis't nesliv, cav e 40% qsugov neshop up e guuf qsufadv vu tvesv xovj tuapft emsohjv.

Qsodoph ot siemmz tunivjoph vjev zua piif vu veli zuas citv haitt up epf fidofi. Vjip zua dep jupi op up ov gasvjis et zua uctiswi epf vitv xjev qiuqmi esi xommoph vu qez gus vji qsufadv.

Ehsiif, O katv xepvif vu qav ov uav vjisi et e tepovz djidl vu neli tasi O'n puv nottoph tunivjoph onqusvepv. Vjeplt