Food For Profit: Price and Pricing

What you'll get

Penn State Extension's fact sheet separates competition-based pricing, which starts from what similar products sell for, from cost-based pricing, which starts from your variable and fixed costs, and works one barbecue-sauce example through contribution margin (the dollars each bottle leaves toward fixed costs after its own ingredients, labor and packaging) and the number of bottles a month needed to break even. It stops at your own selling price, so use it first to find your floor, then add the distributor and retailer layers in the lessons that follow.