Profit margins

jack159th · Joined: 14 Jun 2011 Posts: 16 Location: San Antonio

Whats a decent profit margin gonna be for say..

brisket, baby backs, spares,

cause some meats cost more than others.

say for example

spare ribs at 3.00 lb

avg rack weighs 3.25lbs.

what would good margin of profit be?

is a finished rack price of 9.75 per lb seem to high?

i used the spread sheet and it shows a margin of 225%. is that in line with most?

Geronimo · Posted: Jun 02 2012 Post subject:

No one can tell you what is a fair profit margin for your goods.

If you feel a price is fair for your costs and efforts to cook it...That is what you should charge.

Some on TSR thought my prices were too high where as I thought others across the country were too low. Shocked

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SoEzzy · Posted: Jun 02 2012 Post subject:

The spreadsheet is not set at 225%, you can set it for whatever you feel is a good / fair value.

There are many that say somewhere in the 300 - 350% profit is recommended for food service industry, there are some that will work for less, and some that will work for more.

You can price yourself into a market or out of a market depending on where you set your profit margin, but remembering the days you paid $4.00 or $5.00 for a soda, because that was all that was available in the Theme Park, and you see the same soda cans at $0.27 a can in Sam's Club... you know you're getting ripped off, but there's not a whole lot of choice.

Some people price certain items almost as a loss leader, covering the additional profits by increasing other prices above the base line you set yourself.
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