Start with one repeatable recipe or order
Choose a product you make regularly. Record its yield, ingredient quantities, packaging and the time required from preparation through cleanup.
Convert purchases into usable costs
If a bag contains 2,500 grams and costs $15, each gram costs $0.006. Multiply that unit cost by the grams used in the recipe. Repeat for every ingredient and consumable.
Separate cost from price
Cost describes what the product requires from the business. Price is what the customer pays. The difference must cover uncertainty, reinvestment and profit rather than disappearing into missed expenses.
Review custom requests separately
Extra tiers, detailed decoration, rush timelines, delivery and design changes add work. Record those differences instead of forcing every order into one standard product price.
Recalculate when inputs change
Supplier prices, package sizes and production time change. Review important products regularly and whenever a major input changes.