Congratulations on your business progress to date. Getting started is hard!

You seem to have a clear vision for what you will stand for, which is great. In terms of costings there are two approaches – first understand what the market will bear. What is the competitive product retail cost across different channels and how much margin do you need to offer retailers in order to get them to take on your product. You will usually the find that pricing and margin expectations are different by channel, and you need to put a plan together that everyone feels they are being treated fairy. eg: don’t give one small customer a cheaper price than a big customer or the big customer will just come back and want an even better price!

From there you can form a view of what retail and wholesale price you need to meet.

Then the harder part, a bottom up costing of how much it costs you to make the inu. This needs to include ingredient costs, processing costs, packaging, logistics and overheads.

All can be done in a spreadsheet, although food technologists often use specialized programs that will assist with product costs and nutritional analysis for your NIP at the same time. if you want to go down that path then maybe contact Cathy @ MCfoodies for assistance.

Once you have that number, look at the relationship between the cost of goods and selling price and check you will make some money!

Nga Mihi