In Ames, Iowa, the Food Innovation and Business Hub at Iowa State University is hosting a helpful webinar on May 28 from 11:00 am to noon, titled “Know Your Costs, Keep Your Profit.” This session is tailored for food entrepreneurs eager to master the art of pricing.
Many small food businesses struggle with setting the right prices for their products. “For many food businesses, pricing products can feel like a guessing game,” states Alex Van Alstyne, a food business extension specialist at Iowa State. Many producers look at competitors or go with gut feelings, often leading to a surprise at the end of the day when profits don’t match expectations.
The webinar aims to simplify the pricing process. Participants will learn how to calculate both direct and indirect costs effectively. Understanding labor expenses and overhead allocation will also be covered. These concepts are crucial, as they help entrepreneurs see the bigger picture and ensure they are pricing their products appropriately.
An interesting statistic from a recent study shows that about 75% of small food businesses do not track their costs accurately, which often leads to financial struggles. The webinar will introduce essential forecasting techniques as well, helping participants decide how much product to produce. Bringing too little can mean missed sales opportunities, while producing too much often results in waste and higher costs per item.
This session is perfect for farmers market vendors, cottage food producers, and anyone looking to boost their business’s profitability. If you’re interested, you can find more details and register here.
For questions, reach out to Van Alstyne at alexv@iastate.edu. Understanding your costs is the first step to ensuring your food business thrives.
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