samaritanxocolata
Neophyte
Seeking Investment Capital for Costa Rican Craft Chocolate Company
Posts: 6
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Post by samaritanxocolata on May 31, 2011 20:33:18 GMT -5
Here's a question that I have not found the answer to in all that I have read here so far: What is the average price per kilo that you are wholesaling your handmade chocolate for? What does it cost you to make it and what if any, is your profit margin. I am asking small scale chocolatiers here...making from 10-100kilos per month.
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Post by Brad on Jun 1, 2011 0:28:54 GMT -5
My guess is that the answers are going to be all over the board. There are too many variables to factor in.
A good rule of thumb to work with is that average food cost for a successful food business is between 25 and 30%. Mean is 27%.
If you make fabulous chocolate, you can sell it for more. Several of Choklat's dark bars sell for as much as $130 per kg and as little as $84 per kg. Our truffles sell for an average of $99 per kg. With the quality we make, almost never do we get comments about pricing.
Is our food cost 25%. No. It's less. But then again, we are very unique, make a superior product that people don't have a problem paying more for, and do it fresh right in front of them.
If you are only making 100kg of chocolate per month, my suggestion would be to focus on making something TRULY special, and selling it RETAIL for much higher than your peers.
Profit margin is also dependent on how good of a business person you are, and how frugal you can be. Again, there are too many variables: rent, utilities, equipment costs, how much you draw from the company, do you manage labour well, packaging costs, government fees and permits, taxes, and on and on....
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