"I just want to cover my ingredients."

We hear this all the time from new bakers joining Bakeshop. But if you are only charging for flour and butter, you are working for free. And actually, you might be paying people to eat your cake.

Pricing is the hardest part of the cottage food industry. Here is how to tell if your math is off.

1. You Aren't Counting the "Invisible" Ingredients

You counted the eggs and the flour. But did you count:

• The parchment paper?
• The cake box and sticker?
• The electricity for your oven?
• The gas money for the ingredient run?
• The transaction fees? (Bakeshop allows you to pass these small processing fees to the customer—a standard industry practice that saves you 3-5% instantly).

2. You Are Using "Grocery Store" Math

You cannot compete with Walmart prices because Walmart has robots. You are an artisan.If a customer says, "I can get this cheaper at Costco," your answer is simple: "Yes, you can." You are selling a premium, small-batch, handmade product. Your pricing should reflect that luxury.

3. You Are Ignoring Your Hourly Rate

If a custom cookie set takes you 4 hours to decorate and you profit $40, you are making $10/hour. That is below minimum wage in many states.The Fix: Work backward. Determine your desired hourly wage (e.g., $25/hr), estimate the time, add ingredient costs, and then set the price.

Don't let bad math ruin your passion. Use Bakeshop’s streamlined invoicing to track your orders and ensure every sale is profitable.