Home Baking Business: Pricing - calculating overheads costs

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Annie Bennett: Leading Lady Cakes Business school

Жыл бұрын

In this live, I talked through how I calculate overhead costs, and apply those to my pricing, to ensure that all my business costs are covered.
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Пікірлер: 7

@steff6682 28 күн бұрын

Hey strange question 🙋‍♀️ I love my husband (he pays the mortgage not me, I’m not on the mortgage) can I still put mortgage down as an overhead? Thanks

@janellejohn1783 8 ай бұрын

Hi , i really appreciate you for going through overhead cost this way i totally understand, you stopped me from throwing up my hands and crying. I uave a question i don't have a mortgage on my home but i have a student loan should I put that in the overhead?

@anniebennett6852 8 ай бұрын

I'm g;ad it was useful, thank you! But sorry, no, student loans aren't a tax deductible expense.

@zoeholder7212 Жыл бұрын

Hi Annie, just watching this back. Very helpful, thank you. I have a question about units. Is a 'unit' the cheapest product that you sell? And then you multiply upwards to work out the units for more expensive products? For example, if I sold a box of cupcakes for £15 (my cheapest product) this would be 1 unit, then my 6 inch cake for £60 for example would be 4 units. Or, can you have point zero of a unit, for example if I sold one brownie for £3.25, this would be 0.5 units? How do you know which product equates to 1.0 unit? I really hope that makes sense 🤞🏼

@zoeholder7212 Жыл бұрын

Or actually, is it your most popular product? The one you sell the most of?

@anniebennett6852 Жыл бұрын

It's a way of dividing up your total overheads into manageable chunks. So, yes, your example is correct. I need to divide my overheads fairly across different priced products... so i wouldn't add the same cost to a box of cupcakes as I would a 7 tier wedding cake. Absolutely do 0.5 unit if you need to, especially if your '1 unit' is your most popular product, as that one will be the one you do most, though I wouldn't make that 1 unit too high, or you will be getting into 0.25, or even 0.1 units which would get confusing!! The important thing is to have sales targets so you divide it across what you are planning to sell, so all the overheads are eventually covered.

@zoeholder7212 Жыл бұрын

@@anniebennett6852 That makes sense. Thank you 😊