How much should I charge for my banana bread?

[InMyOpinion]

I am thinking of selling my banana bread again (I used to when I lived in a different city and my it was a huge success), but I'm having troubles coming up with the right price to sell the loaf at.

I thought maybe $10 CAD would be sufficient and fair for a single 8x5 inch loaf of banana bread. I'd also include the option to add chocolate chips and/or nuts.

Do you think $10 is too expensive for a loaf of banana bread? How much would you sell the loaf if it cost you about $5 to make?

For some reason I always struggle at pricing things because I do not want it to be too expensive or seem like a high price, but I also want to be making money from selling these loafs. Please help! Thanks in advance =)

 

[Teegold]

$10 for 8×5 inch loaf seems like a fair deal. But you also have to factor in the weight too. Wouldn't be fair again if it is too light in weight. In any case, I'll advise cutting the price to maybe $8 so you can get more sales.

 

[InMyOpinion]

$10 for 8×5 inch loaf seems like a fair deal. But you also have to factor in the weight too. Wouldn't be fair again if it is too light in weight. In any case, I'll advise cutting the price to maybe $8 so you can get more sales.

I think that's a fantastic idea, I'll start at $8 and see how that goes. Thanks @Teegold for your suggestion

 

[Uptrendfinancialsignal]

It’s very interesting to see that you’re reviving your banana bread business. $10 CAD seems reasonable to me, considering the quality and customisation options. Since it costs you about $5 to make, aiming for a 100–150% markup ($10–$12.50) is still fair.

 

[iorGian]

What is banana bread ?

 

[InMyOpinion]

What is banana bread ?

It is literally bread with banana in it. =)

 

[oldbuddy]

You have way too many variables that would have a direct bearing on the price. For example, the third dimension (height) could make a huge difference. Two inch higher on an eight-by-five loaf is an extra 80 cubic inches of bread. You also mentioned adding nuts or chocolate which should be adding cost and sell for more. It might be a good start to calculate the cost of ingredients plus a little for the electricity to bake it and the time it took you at so much an hour minus the free samples you hand out. Keep in mind it's always easier to justify a lower price than a higher one if you need to adjust it later.

 

[InMyOpinion]

You have way too many variables that would have a direct bearing on the price. For example, the third dimension (height) could make a huge difference. Two inch higher on an eight-by-five loaf is an extra 80 cubic inches of bread. You also mentioned adding nuts or chocolate which should be adding cost and sell for more. It might be a good start to calculate the cost of ingredients plus a little for the electricity to bake it and the time it took you at so much an hour minus the free samples you hand out. Keep in mind it's always easier to justify a lower price than a higher one if you need to adjust it later.

So I've been able to calculate how much each variable ingredient would cost and then also added it up to see what the price of each kind of banana bread would be. I have also put in a few extra dollars for electricity. I think $10 for the plain banana bread is a good price and then if they choose to add chocolate or nuts it is extra.

I agree with your statement though that it is easier to justify a lower price than a higher one if I need to adjust it later.

Thanks for your reply =)