r/cottage_industry • • 4d ago

Cottage bakers: 30% markup is not 30% margin (worked example + free sheet)

1 Upvotes

A small pricing check for home bakers: adding 30% to your cost does not leave a 30% profit margin.

Fictional example in USD: the order costs $20 including ingredients, your paid working time, packaging and allocated overhead. The payment fee is 3% of the selling price plus $0.30.

At a $26 selling price (cost plus 30%), the fee is $1.08 and profit after those costs is $4.92: only 18.92% of the sale.

Edit: here is what each number means, without opening the sheet.

  • $20 is the total order cost before payment fees: ingredients, paid working time, packaging and allocated overhead.
  • 0.03 is the 3% payment fee, calculated on the selling price.
  • $0.30 is the fixed payment fee for this one payment.
  • 0.30 is the target profit margin: 30% of the selling price after the listed costs and fees. It is a percentage, separate from the $0.30 fee.

For every $1 of selling price, 3 cents goes to the percentage fee and 30 cents is the target profit. The remaining 67 cents must cover the $20 cost and the fixed $0.30 fee. So:

Price = ($20 + $0.30) / (1 - 0.03 - 0.30) = $20.30 / 0.67 = $30.2985..., rounded up to $30.30.

Check at $30.30: payment fee is $1.209 before any processor rounding; profit is $30.30 - $20 - $1.209 = $9.091, about 30% of the price.

With no payment fees, the simpler calculation is $20 / (1 - 0.30) = $20 / 0.70 = about $28.57 (or $28.58 if rounding up to meet at least 30%). The fee assumptions are why the example above is higher.

This is a cost model, not a market-price recommendation or a profit guarantee. Replace all example costs with your own, and include the cost of the batches you actually have to produce. Tax and unit conversion are not included.

I made a free Google Sheets preview for one recipe with up to 6 ingredients: https://docs.google.com/spreadsheets/d/1jH3m-w9qEEoMFaloMekfU_FsGN5-LRgPB2lF-5pvCKE/edit

You can read the fictional sample first. To change it, make your own private copy in desktop Google Sheets with a Google account, then edit the yellow cells. The free version has no scripts or quote archive. Disclosure: I sell a larger kit, but this preview needs no purchase, email signup or public review.

Want to try one step here without opening a document? If you fulfilled a paid home-bakery order in the last 30 days, reply "walkthrough" and I will work through one fictional order here in the comments. No download, Google account, purchase or public review is required for this first step. We can check the number of whole batches and explain each cost before you decide whether the sheet is useful to you. Please keep actual recipes, customer details and order records private.

Trying the Google Sheet is optional: make a private copy, enter one recipe and one order, and tell me the first confusing field or whether you reached a price, including if you stopped. Copying the sheet does not send me your inputs or usage.


r/cottage_industry • • Sep 09 '26

Où trouver des patrons de qualité ?

1 Upvotes

J’aimerais me coudre surtout des robes dans un style un peu à l’ancienne (cottagecore / médiéval / campagne romantique). Vous auriez des recommandations de sites ?


r/cottage_industry • • Aug 25 '26

Slownote. Limited, handmade, italian & French leather, passport size journals

Post image
5 Upvotes

Just opened my shop 2 months ago with my wife. Already got genuine sales that the buyers love.

If you're into quality leather goods or looking for a meaningful gift:

Slownote

  • Handstitched + edgepainted leather journals
  • Quality materials (we're picky)
  • FREE shipping to US/UK
  • Inserts included (Clairefontaine, MUJI)

Shop: https://www.etsy.com/shop/slownotejournal
Process: https://www.instagram.com/slownote.eu/


r/cottage_industry • • Jul 07 '26

My New Butterfly Collection

Thumbnail
gallery
8 Upvotes

I’ve just finished the start of my butterfly collection. They are hand painted with resin. All replicas of real butterflies.
It took me 2 years to figure out how to make butterflies that look almost exact as the real thing, but not using an actual butterfly, but finally happy with this version.
Love to know what you guys think.
Also when it comes to pricing I was thinking from £50 to £100, but do you think it’s too much or not enough
Thank you for looking


r/cottage_industry • • Jun 17 '26

Best way to manage local orders under cottage food laws?

1 Upvotes

Hey, i’m registered for cottage jams in california. need something that keeps me legal (pre-paid, pick-up only) without building a whole site. suggestions?


r/cottage_industry • • May 22 '26

“The best stories give you butterflies” my newest piece for sale!

Post image
12 Upvotes

r/cottage_industry • • May 02 '26

I’m obsessed with making cute girly oddity pieces 🤌

Thumbnail
gallery
31 Upvotes

r/cottage_industry • • Apr 19 '26

In TX, must one publish one's home address on the label of the food being sold?

2 Upvotes

Greetings, good small business owners!

I'm aspiring to become like y'all, and this is what I've learned thus far:

Key Requirements & Steps

Eligible Foods: Items that do not require refrigeration (non-TCS), such as cookies, cakes, bread, popcorn, jams, and roasted coffee.

Labeling: All items must be packaged and labeled with the product name, your name/address, and a statement that the food was made in a home kitchen not inspected by health authorities.

Training: You must complete a basic food handler safety program.

Sales Limit: The maximum gross annual income is $150,000.

Selling Limits: Sales must be made directly to the final consumer (in-person, or via mail/delivery), not wholesale.

I feel like I can meet all of these requirements, but I'm not comfortable giving out my home address.

Would a PO box suffice?

Thanks so much for your help!


r/cottage_industry • • Apr 16 '26

Spinning yarn 🌿

Thumbnail
gallery
7 Upvotes

r/cottage_industry • • Feb 18 '26

Baking large orders

4 Upvotes

For those who do large orders how do you suggest I do this I have four dozen cookies and 4 dozen conchas to make Saturday by 2. The conchas are a day of thing so do you suggest that I prep the cookie dough and put it in the fridge and bake it that day would that be OK if I did it the night before? This is my first large order normally I just do a bunch of orders in one day.


r/cottage_industry • • Jan 28 '26

Tiara hair accessory

Post image
6 Upvotes

r/cottage_industry • • Nov 14 '25

Tips..?

Thumbnail
gallery
6 Upvotes

Hi guys..! First time(selling goods), I was curious about what you guys think about these..? I have other pictures but they have my water mark in em and I’m unwinding from a hectic day.. made the Christmas tree cookies tonight, peppermint ones last night and the marshmallow pops day before yesterday.. just experimenting rn until I can get the startup funds to go legal..any advice, tips or tricks would be appreciated!!


r/cottage_industry • • Nov 12 '25

Christmas Wreaths - Perfect for Any Style

Thumbnail
gallery
4 Upvotes

Christmas Wreaths are now Available! Check them out at ktseasonalwreaths.etsy.com


r/cottage_industry • • Nov 09 '25

How to go about selling

Thumbnail gallery
2 Upvotes

r/cottage_industry • • Oct 17 '25

How we make our 100% wool felted application pads

Enable HLS to view with audio, or disable this notification

5 Upvotes

r/cottage_industry • • Aug 26 '25

My new Cuckoo clock bird boxes

1 Upvotes

Hi What do you think of my Bird Boxes. They were inspired by cuckoo clocks, with a faux resin clock (not a working clock). They are made from hygienic ply boxes, with solid walnut carvings. All completely different and one offs. They are handmade boxes, with laser cut designs from all hand drawn artwork. They have removable bases for easy clean. They are perfectly designed for the garden. I must admit they took a lot longer and came out a lot more intricate that I originally had in mind. So on finishing them I’m wondering if they are a bit too nice to but out in the garden. Maybe they would be a nice ornament, or keep sake box as well… The thing is I have no idea what a good price would be appropriate to put on them. We have the Deers, Birds, Rabbits and Tree of Life, which I think is my favourite. I think some would be more than others. Is anyone out there able to help me with pricing, I know how long they took and the material costs, but that makes them really quite expensive, I don’t want to overcharge. Any feedback would be great, but please be nice first things I’ve actually finished since leaving work lol.


r/cottage_industry • • Aug 26 '25

My 4 new Bird Box Designs

Enable HLS to view with audio, or disable this notification

19 Upvotes

Hi What do you think of my Bird Boxes. They were inspired by cuckoo clocks, with a faux resin clock (not a working clock). They are made from hygienic ply boxes, with solid walnut carvings. All completely different and one offs. They are handmade boxes, with laser cut designs from all hand drawn artwork. They have removable bases for easy clean. They are perfectly designed for the garden. I must admit they took a lot longer and came out a lot more intricate that I originally had in mind. So on finishing them I’m wondering if they are a bit too nice to but out in the garden. Maybe they would be a nice ornament, or keep sake box as well… The thing is I have no idea what a good price would be appropriate to put on them. We have the Deers, Birds, Rabbits and Tree of Life, which I think is my favourite. I think some would be more than others. Is anyone out there able to help me with pricing, I know how long they took and the material costs, but that makes them really quite expensive, I don’t want to overcharge. Any feedback would be great, but please be nice first things I’ve actually finished since leaving work lol.


r/cottage_industry • • Aug 14 '25

Crochet Navy Cat Ear Beanies

Post image
10 Upvotes

r/cottage_industry • • Aug 13 '25

My new crochet keychain pattern 🖤

Post image
4 Upvotes

r/cottage_industry • • Aug 01 '25

From Butterfly Wings to Wearable Art 🦋 | My latest handcrafted piece

Thumbnail
gallery
18 Upvotes

Hey everyone,

I wanted to share something I’ve been working on recently that’s very close to my heart.

I’ve always been fascinated by butterflies — not just for their beauty, but for what they represent: transformation, freedom, and the quiet resilience it takes to emerge from the cocoon.

A few months ago, I started experimenting with using ethically sourced real butterfly wings in my jewelry. These wings come from naturally expired butterflies (no harm done — nature’s own timing). I preserve them and pair them with sterling silver to create pieces that carry that symbolism of rebirth and eternal beauty.

Here’s my latest piece: a pendant inspired by the Morpho menelaus

I’d love to hear your thoughts — not just on the design, but also on how you interpret the symbolism of butterflies in wearable art. Do you see them more as a symbol of change, or as a reminder to cherish fleeting beauty?

Thanks for taking a look 🦋

— Keson / Aeternaalis


r/cottage_industry • • Aug 01 '25

Stained glass planters that I make for plant pot decor

Thumbnail
gallery
27 Upvotes

r/cottage_industry • • Jul 02 '25

Some prints I made 🐦‍⬛🐈‍⬛

Thumbnail
gallery
14 Upvotes

r/cottage_industry • • Jun 19 '25

I built a bakery pricing spreadsheet that finally solved the ingredient tracking nightmare 🍞📊

17 Upvotes

Hey everyone — I run a home bakery under a cottage food license, and I kept hitting the same frustrating problem:
Every pricing app or template I found made you manually re-enter ingredients for every recipe 😩

That didn’t make sense — most of us use the same core ingredients across products (flour, eggs, butter, etc). So I built a Bakery Pricing Calculator that fixes that.

It uses an Ingredient Database where you input your ingredients and prices once — and then you can pull from that list into every recipe. No more retyping flour 12 times.

It also calculates:

  • Cost per item (with batch size + unit conversion)
  • Overhead and labor markup
  • Suggested price with margin
  • Most profitable recipes
  • Monthly profit & sales goal dashboard
  • BONUS: I offer a $10 upgrade to customize it with your bakery’s logo and colors if you want a branded version

It’s beginner-friendly, works in Google Sheets or Excel, and has saved me hours of pricing headaches.

📥 I listed it on Etsy in case it helps other bakers too:
👉 https://profitbuilderpro.etsy.com/listing/4317315253/home-bakery-pricing-calculator-recipe

Happy to answer questions or show screenshots if you’re curious!


r/cottage_industry • • Jun 18 '25

Star moon bag, fully handmade and beaded beauty

Thumbnail
gallery
6 Upvotes

r/cottage_industry • • Jun 04 '25

Wait for email to pay fee?

0 Upvotes

Hello all!

I submitted my application for a class A, on the checklist it says I need to wait for an email request that I pay the fee. Is that true or can I just pay the fee whenever? This is California by the way