Do you feel this is fair?

angie828 Level X³

December 7, 2018, 8:05 pm

37

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Do you feel this is fair?

I have never been really good at pricing things. However, I know as a business owner that everyone wants to cover their costs and then make extra money. I was talking to a friend who has a bakery. She said that when she makes cookies, or bars, or really anything, she adds up the cost of what the ingredients were. Then she triples the price.

Now for some things, this might seem acceptable. However, maybe I am being cheap when I think about a bakery. I just do not think that I could come off $15 for a batch of 12 cookies. That just seems really steep to me. What do you think about the method that she is using? Do you feel that it is fair to use this in all forms of business?

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cmoneyspinner

cmoneyspinner

It depends on the cookie! LOL. Adding up the cost of the ingredients is one thing. But the tender loving care that goes into making that batch of cookies? When it's all done, the sweet treats might be worth the money! It's like cheesecake. I know cheesecake is expensive and I could make my own. But there are some store-bought cheesecakes that are worth every penny! LOL.

6 years ago

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amelia88

amelia88

Right? Some cookies are just so intricate that I think they’re worth the cost - provided they taste good too of course. It really does depend on the cookie but I’ve seen some downright amazing royal icing ones...like these for instance!

Do you feel this is fair?

6 years ago

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theresajane

theresajane

Wow, these are just so cute. You are actually right. Some products are just so special that it is rightful to make the price higher than the usual cookie on a bakery. As long as it's worth it, cutoners are still willing to pay.

6 years ago

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amelia88

amelia88

Right? I think they’re amazingly cute and the level of time and detail they would take to make would be pretty significant. Those kind of cookies I’d definitely be prepared to pay more for - especially if they were for a special event.

6 years ago

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edencaga

edencaga

A good packaging and designs in cookies is worth the cost if that's the case. I think it's a little bit pricey if she triple the price and it's okay if she only doubles the price. If it has good packaging and has good design on cookies then I think she can triple up the price.

6 years ago

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Enyi

Enyi

That's right some bakery can sell their goods cheap but the product itself is an apology. I wouldn't mind to buy a cookie triple it price but please let the end result be good.

6 years ago

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Youngshark

Youngshark

I agree. It is all about the value that they are selling to you. If it is more and better then I think that the price really has a little impact.

6 years ago

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edencaga

edencaga

It depends how you spend for the ingredients. I think it also depends to the taste if its delicious or not. You can try also to compare it to other's pricing especially if you have the same product but I suggest you can sum all the ingredients price plus the other things you payed for and effort.

6 years ago

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Enyi

Enyi

Most times it mostly about the taste of the end product.some bakeries will give another a run for their money because of the taste of the money.we shouldn't only consider the ingredients how about the professional hands employed to see customers the taste they want.

6 years ago

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edencaga

edencaga

Yes you are right. It also depends on the taste as this is the real thing and main reason why customers buy pastries and cupcakes because of taste. That's the down side of tutorials in Youtube. Most professionals has a lot of competitors who did not study baking class since they can only look in youtube for tutorials.

6 years ago

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luv2xacosta

luv2xacosta

If the costing of the cookies is right then that would be okay. But then if the quality and quantity of the product just fits with the price then that's fair. It's up to you also if you find it fair when have the product.

6 years ago

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iambeth

iambeth

Well, maybe your friend is adding other expenses incurred in making the cookies like electricity, equipment, labor and rent. There are overhead expenses in operating a bakery other than the cost of the ingredients.

6 years ago

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amelia88

amelia88

That’s a very good point. If you’re occupying prime real estate in a big city then your overheads are going to be way more expensive than someone operating from a small town where rents are super cheap. A lot of the time those overheads get factored into the prices.

6 years ago

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theresajane

theresajane

You are right. One has to understand that in this business is not all about the ingredients. There are a lot of factors that can contribute to the price.

6 years ago

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Jeane

Jeane

Fair or not, it all depends entirely on what the competitors sell their baked products at. As a buyer, I wouldn't complain about the price if I could simply go elsewhere and buy the same product at a lower price. While yes everyone has the right to price whatever they sell as they please, at times it might not just be that good an idea because the competitors who sell their goodies at lower prices will probably drive you out of business eventually.

6 years ago

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amelia88

amelia88

It’s hard to say. Increasing the cost x 3 sounds exorbitant but I always think that if the cost is ridiculously expensive then they won’t have buyers. If people keep purchasing their stuff then maybe the pricing is actually alright.

6 years ago

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Corzhens

Corzhens

You have to take note that business is for profit and without profit it is not business at all. When it comes to the computation of profit it is a business secret and it would depend on the owner of the business on how much the profit he wants for his products. Even if your friend would add a markup of tenfold you have no quarrel with that until she loses her business. But if she is earning good in her business then there is no question on the profit that she had indicated.

6 years ago

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angie828

angie828

Yes, you are completely right there. I understand the entire profit thing. I know that everyone wants to make money, but I also do not feel that it is fair to goge people either.

6 years ago

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overcast

overcast

I have to agree. It's all about profit. And unless trademarked you can't really contest competition. And having anti competition mindset is not a good thing. And another thing is that things are not easy with business. So depending on how things work around it can be a bit different for each one handling customer.

6 years ago

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Enyi

Enyi

I don't think pricing should be a problem if the product is okay. I always like nice products despite the money because I know other things have gone into the products apart from ingredients. It fair if the product is actually worth the price compared to others places end product.

6 years ago

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overcast

overcast

I think it's all coming down to business. And people play different tricks to get ahead. And I won't blame them. Most of my content goes stolen and people make money off it. And that can be really sad if you ask me. Another thing is that I think you have to be cautious about some business playing unfair. And you have to also find the positive side out of this. It is not going to be easy but worth doing.

6 years ago

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knnon

knnon

I'm sure the right pricing goes like this... she should set a rate per hour first. Then what she needs to do is to calculate up the cost of the ingredients that she used, then calculate the hours of labor that went into baking and decorating, then add it all up. That's how you'll be sure you'll be getting paid correctly while also making sure your clients don't overpay for your items.

6 years ago

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burgosmichael24

burgosmichael24

Price of the cookies doesn't solely depends on the price of the ingredients. It maybe too expensive for you if you just based the price on the ingredients. But if you consider the labor, the packaging the store, electricity consumption and a lot of other factors maybe that would change your perspective about the price. Some products are more expensive than the others sometimes because of the physical appearance of the store or sometimes because of the name of the store. There's a lot of factors to be considered.

6 years ago

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amelia88

amelia88

That’s an important point. I’d probably be inclined to pay more for a cookie or a cupcake at a bakery that had really cute decor than I would for just your average run of the mill bakery that didn’t put any effort into their surroundings. Lots of things come into a products cost.

6 years ago

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theresajane

theresajane

I agree. I wouldn't even bother to pay for a higher price if the cookie is well designed and well done. I would even recommend the product and the store if it's good.

6 years ago

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NerdIndeed

NerdIndeed

Well, it depends. Aside from the ingredients, maybe the baker has other expenses like gas, labor, etc. There are others out there who even have profits of 400%. For example, the telecom companies, all they do is set-up the cable connections, and it's all done. Now, why are we paying monthly subscriptions for it?

6 years ago

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jpk0007

jpk0007

I think that the profit margin in the case of a business which is related to food products and catering is usually about 40 percent. That means you must be able to earn a profit of around 40 percent after taking care of the other expenses like labour, electricity etc. Quoting thrice the amount of the actual value is a bit more in my opinion. However people will pay higher rates for a good quality product.

6 years ago

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esteban123

esteban123

I think I don't mind buying an expensive rookies as long it is very delicious and worth for the price since there are some business establishment that are offering a lower price for their stuff but of course offering also a much lower quality than what we are expecting to have. It is better to be pricey as long as it is fair and justifiable otherwise it would be just a waste of our precious money.

6 years ago

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Alania

Alania

Every country has different marketing, so it's hard to tell. Depending on the income of the people over there.
Here, 12 cookies would've costed about around $5. In theory, you might be right that it's unfair. Because nowadays, there's no overall control over the marketing, which is sad.

6 years ago

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Franzel2oo

Franzel2oo

If people are willing to buy, then it is my opinion that what she is doing is okay. There are people of ostentation. They like to buy overpriced stuff just so they can feel better than every other person who does not live like them, because they cannot afford to. Your friend got into business to make money, and as long as she is not doing anything illegal, I think she's doing okay.

6 years ago

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rlpzbeermoney

rlpzbeermoney

I think a dollar for a cookie would be an acceptable price considering it's the holiday. It's the holidays. Everyone wants to splurge a little bit on everything. If you price it too low, you'll lose a lot in profits. For a dozen cookies, $12 is an acceptable price for me. Bonus points if it's an exceptional batch of cookies.

6 years ago

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theresajane

theresajane

If it's overpriced, then, I guess, the customers would really throw a fit, especially if the cookie isn't that special and delicious. But, if it's worth it, customers will not see it as a problem actually.

6 years ago

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Alania

Alania

Strangest thing about some people is the fact that they might go for a popular expensive brand with bad quality, rather than some good, cheap and unpopular. That's like 80% of the people. They don't think themselves, but rather repeat what everyone else do. That's why we don't see many big new companies nowadays (at least here).

6 years ago

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gutzman

gutzman

I think you just need to add up the price of the ingredients and the fee for your service or labor. If the process of cooking takes a lot of time and effort, I think coming up with a double or triple price is just fair. Anyway no matter how costly your goods are, as long as the customer is satisfied, they'll definitely come back for more. You just have to gauge the price of your goods if it's worth it.

6 years ago

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