Making a price list for your baked goods business can be as informal as a trial and error exercise in setting prices for your various products, or as involved as a full-scale market research endeavor where you thoroughly check out the competition against your own needs and capacities. In either case, the first thing to do is to conduct a preliminary inventory of your current stock of items. Once you have a sense of what you have to sell, you can go about setting prices, formatting your list, and advertising your deals.
Analyze your sales mix. Look at your present or projected menu offerings to see how they fit into your sales objectives.
Classify each of your products according to their cost and profit, and act based on these groupings. For example, certain items are low cost and do well; other items are high cost but are always in demand. Make products like these prominent features on your menu.
Revamp more problematic items that are slower to sell. Decide whether you want to lower prices, alter ingredients, or change your product descriptions.
Set your prices according to market conditions and demand in your area. Price higher-demand products as demand dictates, but adjust as competitors rush in to sell comparable items.
Charge as much or as little as you can. Be prepared to be able to justify any raised prices with a product that customers will agree is worth the cost.
Keep prices in line with customer and image expectations. Make sure that your prices are appropriate for your setting. Prices that make sense for a cozy homestyle bakery may not be appropriate in a high-end boutique bakery, for instance.
Watch market conditions over time, and be ready to alter or adjust your price list to keep up with changes. Flexibility in pricing is one of the keys to maintaining a strong presence in the baked goods sector.
Pricing lower may be popular for your customers, but it may result in lower profit margins for your bottom line. Similarly, severely undercutting your competition's prices may at first seem to be market-forward, but be aware that aggressive tactics could risk antagonizing competitors, or altering the public perception of your values and image.
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