You will have already completed the first step or it will be on your to-do list. As described above, write down all the types of costs that are relevant to your pizzeria.
2. Set your profit margin
The profit margin italy phone data is the portion of the sales price that remains as profit for you. The profit margin must therefore be high so that your pizzeria can cover all costs and at the same time make a profit.
3. Apply a calculation method
After you have recorded all costs and determined your profit margin, use one of the following calculation methods to calculate the selling price of your pizzas.
Simple markup calculation
With this calculation method, you determine the price for your pizza by multiplying a calculated markup by the cost of goods sold. The formula you need for this is: selling price = cost of goods sold x markup .
Example: Let's assume that the cost of goods sold for a pizza is as follows:
pizza dough 0.55 €
tomato sauce 0.07 €
Salami 0.80 €
Paprika 0.10 €
olives 0.15 €
Cheese 0.30 €
The purchase price of our example pizza is 1.97 euros . If we multiply the purchase price by 400%, we arrive at a sales price of 7.88 euros using the simple markup calculation . For sales psychology reasons, we could round the price up to 7.90 euros .
contribution margin accounting
This method allows you to make a more precise calculation , as all variable costs are taken into account individually. However, this also makes the contribution margin calculation a little more complex and time-consuming. Contribution margin is the difference between the sales price and the variable costs.