very well explained.

You are welcome! Glad it was helpful.

Glad it was helpful!

Glad it was helpful!

Hi there, it's a great question. The perfect balance is having enough profit margin to grow your business while also making the price attractive for consumers so you can actually sell that item. Nobody wants an item that's profitable on paper but not being sold in real life. The general rule of thumb is ~30% cost of goods sold (COGS). This means that if you sell a dish for $10, the food costs would sum up to $3. Obviously, the higher the profit margin, the better from a pure profitability perspective, but there are two things to consider. 1. If you lower your COGS too much, how does that affect the quality? Being the cheapest isn't always the best. 2. If you increase your selling price too high, are you selling enough quantity? In other words, you can have a 90% profit margin, but what if that means you are selling 5 dishes per day. Versus, let's say, a 70% profit margin, but you are selling 100 dishes per day. All this to say, if I were you, I would look at the cost of creating the dish and divide by 0.30 (i.e., 30%) to get a starting point. For example, if the dish costs you $3, you would do $3/0.30, which would give you $10. Then I would think about a marketing approach. Is $10 competitive where you are for that dish? Is it too low? Is it way too high? Lastly, remember that pricing is not a one-time decision. It's a dynamic process that requires testing and adjustment. This way, you can stay responsive to market changes and ensure your pricing strategy is always on point.