In this episode of Kitchen Notes, we’re taking a listener question & diving deep into an essential business finance topic: raising your prices!
On today’s episode, we’ll talk about…
- The various factors that can impact your bottom-line profitability,
- The importance of understanding your business costs, which includes overhead costs (rent, utilities, etc.), labor costs (employee salaries), and product costs (ingredients and supplies),
- Regularly reviewing your profit and loss statements, and why this is absolutely crucial for gaining insights into your business’s financial health.
- Determining your “bare minimum” number – the minimum revenue needed to cover essential expenses, and avoid losses.
- Evaluating demand, sales volume, and customer feedback … and how these can help identify if it’s time to adjust pricing, or focus on increasing revenue
External Resources mentioned in the episode:
- Recipe Costing Essentials Course: This quick-hitting e-course provides guidance on how to cost your menu items properly – including a handy recipe costing template you can use to price your baked goods. More details can be found at https://www.recipecostingessentials.com
- Finance Fundamentals E-Course: Our flagship e-course for bakery entrepreneurs who are ready to transform their business into a profitability machine! Join the waitlist: https://bba.bakerybusinessacademy.com/waiting-list-ff
- SCORE: Score provides free and low-cost classes for small business owners on various topics, including finance and accounting. You can access their resources at https://www.score.org/
Remember, understanding your bakery’s finances and making informed decisions about pricing and revenue can lead to a more successful and sustainable business.