u/flourandfigures

▲ 2 r/cottage_industry+1 crossposts

At what point did you realize you were underpricing your products?

I’ve been digging deeper into my numbers lately and realized I was way off on some of my product costs, especially packaging and yield.

Once I actually broke everything down per item, it completely changed how I look at pricing. A few things I thought were profitable really weren’t. I think I was pricing more on what felt right instead of actual numbers.

Curious how others here approached this:

  • When did it click for you that your pricing was off?
  • What were you missing at first?
  • Did you fully cost everything out or just adjust as you went?

Feels like one of those things you don’t really see until you sit down and do the math 🙄

reddit.com
u/flourandfigures — 1 day ago

I didn’t realize how off my pricing was until I actually broke everything down!

I’ve been working on costing out our products more accurately (ingredients, packaging, labor, etc.) and it kind of shocked me how much I was underestimating certain things, especially packaging and batch yield.

Once I started looking at cost per item and per case, it completely changed how I think about pricing. Some things I thought were profitable really weren’t.

Curious how others are doing this … are you using spreadsheets, software, or just estimating?

reddit.com
u/flourandfigures — 1 day ago