Understanding Pricing and Optimizing Costs
This is a virtual event that will take place on Zoom on July 15th from 10am – 12:15pm. Scroll down to add this class to your cart.
Welcome to another virtual workshop in our So You Want to Start a Food Business series! This time, we’re talking all about the almighty dollar. As a new, small producer the first step you take into the marketplace is setting your price. Too high and your new product is dead on arrival, too low and you may spend years losing money until you can increase it to where it should have been from the start. Starting a CPG food business successfully means having a solid understanding of your money coming in and out and that starts with understanding your price and your costs. This virtual workshop will cover startup strategies for pricing your product and optimizing your product’s cost structure.
In the first part of this workshop, our Farm Program Director David VanEeckhout will walk you through the factors to consider when determining the best price for your product, and how that changes depending on market and scale. He will also cover what a break-even point is and how to calculate it so that when opportunities arise for different markets, you know how low you can go.
- How COGS impacts pricing
- How product and process decisions influence COGS
- Why it’s never too early to consider/explore cost optimization
- Strategies to reduce your product COGS (and increase your profit)
Last but not least, you’ll see these concepts at work in the real world in a conversation with Belén Rodríguez, owner of local empanada company Quebracho. She will share her own firsthand experience as a small food business owner as she navigated pricing her product and optimizing her costs as she moved into the CPG market.
Have questions? Please contact our Kitchen Programs Manager, Camille Mefleh at [email protected].
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