The Fresh Loaf

A Community of Amateur Bakers and Artisan Bread Enthusiasts.

How much?

Kobali's picture
Kobali

How much?

how Much are you willing to pay for this loaf? Made with flour water salt fresh yeast and 8 hours including bake. Dough weight 1kg Fresh delivered.

Broetchen's picture
Broetchen

I think people tend to charge too much for their home baked loafs. I would figure the cost of ingredients per loaf and double maybe triple them to get your price you would charge.

drogon's picture
drogon

It's always a tricky one - and I make a small amount of bread for sale 6 days a week. (8 loaves went up to the shop this morning)

I'm also self-employed and often the nature of that is that you don't charge for your time when doing stuff like this - if I charged my bread making at my usual IT consultancy rate, then my loaves would costs £100s each!

One rule might be to charge what you think people will pay - and that all depends on where you are. E.g. in my town for a large hand-shaped organic sourdough loaf of about 800g cooked weight, then buyers will pay between £2.50 and £3.00. 2.5 miles to the next town up the road, they'll pay 50p more. Same for down the road to the big farm shop and bigger town. However I'm selling via a local shop, so they want their cut too )-:

Also check the competition - although price fixing is illegal (where I am) and frowned upon, there's no point either being stupidly higher or lower than anyone else local to you who might sell something similar.

Finally - make a spreadsheet and detail exactly everything that you put into the loaf - except your time. Right down to the water (if on a meter) and salt (even at 8g of salt for that loaf - if you buy posh sea salt it starts to become significant!) Same for yeast. Electricity to power the fridge if slowly risen there and cooking energy costs too.

It can be quite depressing when you look at the costs - especially when selling through a shop who wants their cut... Is it worth it? From a personal/satisfaction viewpoint, absolutely, but it's not something I'll retire on!

For your loaf above - you need to make it more "artisinal" (whatever that means) or "rustic" (again whatever that means), so hand shaped is a plus point - standard yeast - meh - long ferment - another plus. Spice it up by a better dusting of flour and scoring on the top - even a simple cross or # pattern and you can charge a few pence more - I would pay a (small) premium for that, but I know and appreciate the effort of hand making it - the locals where I am who shop in the supermarket wouldn't.

-Gordon

gerhard's picture
gerhard

Probably the hardest part of running a business other than managing employees.  You have to consider your cost to establish your costs and the market to determine your highest price.  It is a juggling game balancing volume against margins as higher prices don't necessarily mean higher profits and neither does more volume.

Gerhard

AbeNW11's picture
AbeNW11 (not verified)

But at the end of the day it's fresh yeast and not specialised sourdough. Nor is it specialised grain. When you sell it the time it takes to make won't be the concern of the customer. Make it fancy and you can charge a bit more. I won't go into more detail as drogon has said what I'm thinking. More than a supermarket loaf but less than an artisan sourdough. I'd go for the medium. Supermarket would be about £1.70ish. Sourdough - well that's more varied say £3+ so something inbetween. 

Arjon's picture
Arjon

I'm still a relatively new bread baker, but as a former marketing manager and business trainer plus being a self-employed contractor, I've had lots of experience with pricing. As a simplification, it's about gauging what your market will bear while also considering your costs and volume to assess how profitable (or not) you will be.

One key element here is properly defining "your market". It's very common among start-up entrepreneurs to define their markets too widely. For example, your market isn't everyone who eats bread. It's only the segment of people who are reasonably likely to pay a premium price for better bread. Depending on the volume you aim for plus other factors, this premium can range from quite small to very large. 

As drogon pointed out, it's important to assess how you can improve your value proposition so your customers will be willing to pay a larger premium. In this regard, remember that a value proposition can include more than just the product. 

AbeNW11's picture
AbeNW11 (not verified)

Very often you pay more for less. Palm oil free, salt free, organic, additive free, eggs free, sugar free etc etc. 

In fact, sometimes! the purer the ingredients and less tampered with costs more. 

drogon's picture
drogon

I think it's to do with economy of scale, or so I've been told. I also think there's a premium on words like organic, etc. too.

It's generally true that yields are lower with Organic produce, but round here we have what's sometimes nicknamed the "riverford tax". Riverford are the big organic veggie box people here (possibly one of the oldest and most successful in the country) and have branched out over the years. Their original farm shop is full of lovely produce - some at eye watering prices...

-Gordon

Yerffej's picture
Yerffej

If the bread were made with organic flour, I might buy it.  If it were a sourdough bread made with organic flour, I would definitely buy it.  Sourdough with organic flour....depending on the location and circumstance somewhere between 5 and 8 USD.

Jeff

Kobali's picture
Kobali

here is simply no price comparison as no artisan bakery and here is no bread like mine made fresh straight from oven. yes I score the loafs can not post more pic I do not know why only able one pic. I am  in NY. The reason I created the post is that I sold the loaf for $7 and my cost of ingredients was about $2. Including power. King Arthur no cheMical. do you think this is right price?

dabrownman's picture
dabrownman

and see how many other people in NY will pay too much for a well made plain, home made yeast loaf.  You have tapped into a small crowd that has more money than sense leaving you have a huge profit margin but, you should be able to make that bread for $1 - not $2 and it will be SD too.  Love the cracked crust.  Well done and happy baking. 

Arjon's picture
Arjon

can change depending on various factors including but not limited to production capacity, business goals such as how much and how soon you want to expand, your costs, and your short- and long-term profit targets. As I said, pricing can be complex.

Otoh, if you're baking as a hobby, maximizing profit doesn't have to be a consideration at all. If you're content to charge a buck or two per loaf in order to help pay for the cost of your hobby, that's completely fine. 

drogon's picture
drogon

If you can make that much, I might move over ;-)

 

-Gordon