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Catering, Food Handling and Awareness *OnTopic* Forum to educate us on safe food handling. Not specifically for Catering or competition but overall health and keeping our families safe too.


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Unread 12-28-2010, 11:55 PM   #1
Phrasty
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Default Sausage Markup???

Hey guys, Looking for some feedback here. What kind of markup would you put on fresh sausages (% of cost $)? Considering your making them from scratch. Looking at a small quantity monthly? (under 10lbs) Thanks.

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Unread 12-29-2010, 06:15 AM   #2
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You always want your food cost - cost of materials - to be 30% of your price. If it costs $1 in materials - you sell for $3. To calculate your retail price, determine your cost then divide that cost by 0.3
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Unread 01-01-2011, 11:19 AM   #3
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Common sense comes into play, too. Some items can't be figured using the standards like Chachahut gives above, although it is a good, fair one he gives.
For example: I buy a single rack of ribs for $10. I can't charge $30 for it. No one would pay that.
The standards work very well for most situations, but don't make them the gold standard for pricing in every situation.
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Unread 01-01-2011, 04:17 PM   #4
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$10/rack is expensive.
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Unread 01-01-2011, 11:42 PM   #5
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I think he was just using that as an example for simple math...
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Unread 01-02-2011, 05:00 PM   #6
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But his simple math isn't even close to being a good example. Minimum food cost should be around 30% if you are actually in this business.

If you do this sort of thing on the side and out of the house (typically illegal), then you do not have to charge this much as you don't have the same costs involved as those with real businesses.
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Unread 01-03-2011, 09:19 AM   #7
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Cabntmkr1 actually does have a point. The only menu item in a Q joint you can't go 30% on is ribs. Thanks to the Applebys & roadside hobbyists of this world, people have been trained to believe they can get a full rack of ribs & three sides for $20. Those of us making an actual living slinging Q have to find some sort of happy medium. I sell a full rack of St. Louis spares with a 12oz side of BBQ Beans (made from scratch) or Handcut Slaw (made from scratch) for $23. That is certainly not a 70% mark up over food cost. To make up the difference I came up with a menu item called Pig Wings. All the rib tips & trimmings get cubed up & smoked with the ribs. 8oz cup for $5, 12oz cup for $9. All leftovers go into the Trashcan Chili. When you're shaving margins, you have to find ways to make it up elsewhere.

Back - however - to the original question - which was not about ribs. In fact - as it is about small batch hand made sausage - I would be willing to bet Phrasty could do even better than a 70% mark up. Quite a few foodies are suckers for the artisan sausage thang. I have friends who typically sell sausage at around $10/pound and can't keep up with demand. It is - however - great freakin' sausage.
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Last edited by chachahut; 01-03-2011 at 09:21 AM.. Reason: typo
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Unread 01-03-2011, 10:40 AM   #8
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Quote:
Originally Posted by Cook View Post
But his simple math isn't even close to being a good example. Minimum food cost should be around 30% if you are actually in this business.

If you do this sort of thing on the side and out of the house (typically illegal), then you do not have to charge this much as you don't have the same costs involved as those with real businesses.
We do this on the side, LEGALLY, with a trailer, dedicated shop / facility and all requisite permits and insurance. When it's all said and done, pre-tax, we gross 50% after labor AND depreciation costs. Meat alone sells for; $12 / pound Brisket, $10 / pound Pork, $18 / slab Spares. real money is in sides and service.
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