How to Price Your Homemade Baked Goods for Profit

The most common mistake home bakers make is undercharging. Your time, ingredients, packaging, and skill all have value. Here's a simple formula:

1. Calculate ingredient cost per batch 2. Add packaging cost (bags, labels, boxes) 3. Calculate your time at a fair hourly rate ($20-30/hr minimum) 4. Add a 30-50% margin for profit and overhead 5. Divide by the number of units

For example: A batch of 24 cookies might cost $8 in ingredients, $3 in packaging, and take 2 hours ($50 in labor). That's $61 total. With a 40% margin: $85. Per half-dozen: $21. Round to $22 or $24 for clean pricing.

Top sellers on Potluck price confidently because their customers value quality and locality over mass-produced alternatives.

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