Sarah Delevan Consulting

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My 3 Rules for Pricing

“Setting your prices to achieve Product Profitability does not guarantee that you’ll achieve Business Profitability.”

If there is one critical concept that I want every food + beverage business owner to know, understand and accept this year, it’s the one I’ve written above. 

I’ve talked about it on The Good Food CFO podcast, The Real Food Brands podcast, The Food Biz Wiz podcast and even on a few webinars like the one I did with WeStock.

We’ve been misled on how best to approach our pricing. 

I got it wrong in my food business...

And when businesses get it wrong they can hit or exceed their sales goals but struggle to achieve profitability and they aren’t sure why.  When the cause goes unresolved or the source of the problem is unidentified, losses start to mount and the result can be the closure of the business.

So how do you ensure that you’re pricing your products for BUSINESS profitability? 


Follow my 3 rules for pricing:

  1. Don’t calculate your prices using your per unit labor cost

  2. You CAN’T successfully price your products in a vacuum

  3. You CAN price your product with a simple formula, and your target ingredient cost %

Ready to learn more and get your products priced right? 


Click here to listen to The Good Food CFO podcast. 

Watch the video version of the podcast on YouTube, complete with helpful slides. 

I’m here to support you - so join us in the Profitable Food Business Community to share your questions.


About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.