You bake because you love it — but if you’re selling your desserts, passion isn’t enough. To make your business sustainable, you need to price your treats in a way that covers your costs, respects your time, and gives you a fair profit.
In this guide, you’ll learn how to price your homemade desserts step by step — with real methods, formulas, and tips to avoid common mistakes.
Why Pricing Desserts Correctly Is Essential
- Ensures you’re not losing money
- Reflects the quality and value of your work
- Helps you grow your business confidently
- Sets you apart from “cheap” or underpriced competition
- Builds respect for your craft and your time
Step 1: Calculate the Cost of Ingredients (COG)
Start with one recipe and write down every ingredient and how much you used.
Example: Chocolate Chip Cookies
| Ingredient | Amount Used | Cost per Unit | Total |
|---|---|---|---|
| Flour | 2 cups | $0.20/cup | $0.40 |
| Sugar | 1 cup | $0.30/cup | $0.30 |
| Butter | 1 cup | $2.50/cup | $2.50 |
| Eggs | 2 | $0.25 each | $0.50 |
| Chocolate Chips | 1 cup | $1.00/cup | $1.00 |
| Vanilla, etc. | – | estimated | $0.30 |
Total Ingredient Cost: $5.00
Recipe Yield: 20 cookies
Ingredient Cost per Cookie: $0.25
Step 2: Add Packaging Costs
Include boxes, ribbons, stickers, bags, etc.
Example:
- Box: $0.60
- Sticker: $0.10
- Parchment or liner: $0.10
Total packaging per unit: $0.80
Step 3: Add Labor Cost (Your Time!)
Estimate how long it takes you to make, clean, and package — and assign yourself an hourly rate.
Example:
- 1.5 hours total work
- You value your time at $20/hour
- 1.5 x $20 = $30 labor total
- $30 / 20 cookies = $1.50 per cookie in labor
Step 4: Include Overhead
These are indirect costs like:
- Gas/electricity
- Equipment wear and tear
- Cleaning supplies
- Business cards or website
Estimate and divide monthly costs by total products made.
Add about $0.10–$0.30 per item depending on your setup.
Step 5: Add Profit Margin
This is where you build growth. Most home bakers add 20%–50% on top of all other costs.
Let’s break it down:
| Expense Type | Cost Per Cookie |
|---|---|
| Ingredients | $0.25 |
| Packaging | $0.80 |
| Labor | $1.50 |
| Overhead | $0.20 |
| Subtotal | $2.75 |
| Profit (30%) | $0.83 |
| Final Price | $3.58 |
Round up to $3.75 or $4.00 for a clean price.
Don’t Undercharge!
It might feel tempting to “just cover costs” at first — but:
- You devalue your work
- You train customers to expect unsustainable prices
- You’ll burn out faster
- Raising prices later is harder than starting correctly
Charge what your product is worth, not just what you think people will pay.
Smart Pricing Tips
- Bundle items (e.g. 4 cookies for $15 = $3.75 each)
- Offer add-ons like gift wrap or extra fillings for a fee
- Charge more for customizations or rush orders
- Create premium options for events or holidays
- Offer volume discounts for orders over a certain quantity
Tools to Help You Price
- Spreadsheets (Google Sheets, Excel)
- Apps like Baketivity Pricing Calculator or BakeDiary
- Custom calculators made for small food businesses
Final Thought: Price with Purpose
Pricing isn’t just about numbers — it’s about honoring your craft, your time, and your vision. When you price with care and confidence, you build a business that not only survives — it thrives.
So crunch those numbers, bake boldly, and never apologize for charging what your dessert is truly worth. 💰🍪✨