Costing Out Your Recipes

Costing Out Your Recipes:

This is a recipe from one of our readers, who asked for an example of costing out your recipes. If you have any questions feel free to ask them in the comments area at the end of this article.

Regina’s Chocolate Cake Recipe

2 cups of sugar
1 & 3/4 flour
3/4 baking cocoa
1 & 1/2 teaspoons baking powder
1 & 1/2 teaspoons of baking soda
1 teaspoon salt
2 eggs
1 cup milk
1/2 cup veggie oil
2 teaspoon of vanilla extract
3/4  to 1 cup coffee

Step 1:
  1. Start a blank recipe file.
  2. Fill in the ingredients and their imperial measurements (imperial measurements are cups and teaspoon measurements we use in the United States).
  3. I look at my master ingredient chart and convert my measurements (cups) into weights.

Regina's Chocolate Cake Recipe Photo


Step 2:
  1. I need to figure out how much each ingredient costs; per ounce or per egg, per teaspoon, etc.
  2. Using a calculator to do the math, determine how much each ingredient costs. (We’ve included a column to show the math used for each ingredient. You don’t need to show this detail in your own recipes.)

Examples:

  • 14 oz. of sugar x .04 cents = .56 cents.
  • 1.5 tsp. of baking soda costs my cost less than 1 cent, but I do add one penny to my ingredient costs.
  • 2 eggs that are .13 each = .26 cents
  • 1 cup of oil is .48 cents, but I only need 4 oz (1/2 cup). 1/2 of .48 cents is = .24 cents

 

Costing out your recipesOn the bottom right corner you can see that this recipe cost $2.58 in ingredients. If the ingredients in Regina’s town cost more, than this will cost her more. That’s why everyone needs to create their own price sheet.

  • Regina also needs to determine how much cake this recipe makes (and record that). Is this 1, 9″ layer cake, or 24 cupcakes? If this recipe makes 24 standard sized cupcakes, each cupcake costs .11 cents PLUS the cost of the frosting, cupcake liner, box, her time, her overhead costs, etc…
  • It’s important to know your yields for each recipe you use. Learn how many batches go into making one product to calculate your per product ingredient cost.

Here’s Another Example: Patrice’s Red Velvet Cake Recipe

¬†This time I worked out the prices right away and didn’t show you the math. Patrice's Red Velvet RecipeYou can do this too!!

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