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.
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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