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Is this a good profit margin for food?

(7 Posts)
k2togm1 Thu 09-May-13 11:47:09

Not 100% accurate as still need to work out a few things but roughly my profit margin is 200%.
I am not sure what is expected in the food industry, but I think this is pretty good, would you agree?

GlaikitBampot Thu 09-May-13 14:05:07

I'd say it's pretty impressive, according to the web the average margin would be roughly 60-70%! Good for you, I say. smile

MrsVJDay Thu 09-May-13 14:09:52

Um, perhaps you should check your maths?

k2togm1 Thu 09-May-13 14:38:19

grin Yes perhaps my maths is the problem! I am taking the difference between my costs and the retail price and that's my profit margin, is that wrong?
I can't really do variable costs, can't get my head round that, perhaps that's the problem...

FrancesWildSwan Mon 13-May-13 11:04:47

That sounds extremely good though it may be worth a double check that you have covered all the costs, for example packaging, licences, fuel cost running cookers etc. In my relatively limited experience the best margins are in catering without the need to run premises.

Mannequinkate Mon 13-May-13 11:08:37

You are working out your gross profit. You also need to determine your net profit (profit after all expenses)

k2togm1 Mon 13-May-13 19:49:38

Oh by costs I meant all expenses! I think that is the thing, baking at home there are no overheads, cheap insurance etc. also I am doing it on a tiny scale and although with high quality ingredients the price that can be asked for the product is quite high, but still cheaper than at mosts cafes. I am selling at market stalls so don't have to pay staff either, just me, and I am paying myself the min wage (well, in theory, am actually not paying myself anything yet, want to reinvest and don't actually need to pay myself just yet).
Have only just begun so mainly playing things by ear, which I hate, but know very little about business.

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