Pricing my products when using a rental kitchen
I'm so glad to have found this forum to post my questions. After reading several posts, I know I can get the help I need.
I am about to embark on my first real business opportunity to bake pies for a new restaurant that opened in my neighborhood. To do so legally, I'll need to rent a kitchen. I want to start slow first by renting by the hour then monthly. The rate is $25 per hour and $600 per month for 15 hours per week. I learned through the other posts, to price wholesale at my cost times 3. Then I saw a post that said to factor in labor and fixed cost like rent so, do I divide the hourly rental fee on top of my wholesale cost? If so, I might have a pricier product than I want and will have to really adjust. Should I just do what it takes to break even and then raise prices later when I know I'll need to move to monthly rental?