One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).
This information is vital for pricing your product correctly, and it’s not a one-and-done type of calculation: it should be done regularly in order to ensure maximum profitability.
As described in the link below, COGS are any costs involved in the production of a unit of your product. However, it doesn’t include everything: operating a successful business includes many marketing, branding, and other costs that aren’t calculated in COGS and still need to be factored into your business P&L.
Managing and optimizing COGS requires diligence and strategy. A number of tips on how to minimize cost and maximize profitability can be found here.
Read more on COGS below:
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