Sustain • Good Food Enterprise • Growing Community Food Enterprises toolkit • Managing your finances
Product cost pricing
Retail
Standard retail costing for a product is the cost (price) of your purchase x 2 (+VAT if applicable). Gross Profit is therefore 50% or half of the money you have charged.
Catering & hospitality
Standard costing for products made from raw ingredients are the cost of the ingredients x 4 (+VAT if applicable). Gross Profit is therefore 75% or 3/4 of the money you have charged.
Hand-made products
Costing will depend upon the cost of the raw materials; and can vary. For example silver products can be priced at 2.5 x the raw material costs up to 4 x the raw material costs (+VAT if applicable) . For pottery this can be up to 10 x the raw material costs.
Fresh produce
This is usually the lowest area of profit. For vegetables it could be produce cost x 1.5, making gross profit 1/3 or 33.3% of your sales.
Service costing pricing
Typically, this will be based on an hourly rate (+VAT if applicable). If you are generating all of your income or a proportion if your income from delivering a service then the hourly rate needs to cover all of the costs related to delivery of that service, not just staff costs.
Download our Costing example spreadsheet.
Good Food Enterprise: Working to provide food that is good for people and the planet, and support local production playing a part in community beyond trading.