Nobody LIKES paying shipping fees…

But for some food business owners, high shipping costs stop online shoppers in their tracks, and keep them from reaching the checkout page.  

Their answer: FREE SHIPPING

Or perhaps I should say, “FREE” Shipping. 

Because, you guys… the shipping should not ACTUALLY be free!

Not unless you’ve got amazing profit margins that won’t be reduced to zero (or lower) by covering your customers’ shipping costs. 

And you don’t mind giving those profits away! 

With the holidays just around the corner and more shoppers buying online than EVER before..

Ensuring you’ve got a profitable shipping offer could be the key to your holiday financial success.  

You MUST incorporate the cost of shipping, or at least a portion of it, into the price of your products to maintain your profit margins. 

If your holiday promotion plan includes free or discounted shipping, listen up!   

here are my top 3 tips for a financially successful holiday shipping offer:

#1. Determine Your Net Shipping Income / Loss

If you currently offer a shipping discount, record and track these 3 key pieces of financial data:

• Your online product sales number

•  Your online shipping income number

• Your costs to pack + ship your products to customers

Once you have recorded and tracked this data, you can calculate your Net Shipping Income or Expense.
And you can determine if your shipping offer is having a negative, positive, or net zero financial impact on your business.

#2. Determine the Cost to Ship Each of Your Packaged Products

Many business owners make the mistake of estimating their shipping costs based on the weight of their products, rather than the total weight of the package that will be shipped.

Additionally, many businesses allow their customers to shop “a la carte” making it hard to determine the weight of every package that they ship, and thus to difficult to determine the appropriate shipping offer or price to build into their products. Grouping your products into “packages” limits the number of shipping configurations that are possible, and can also streamline your fulfillment processes.

#3. Implement and Analyze Your Results

Much like when implementing a new marketing strategy, businesses should monitor the results of a newly implemented shipping strategy
in at least these 2 ways:

1. Monitor customer activity on your website to identify if the new shipping offer is preventing potential buyers for completing checkout, or if the offer is improving your abandoned cart rates.
   
   Some of my clients report overwhelming positive response to their new “free shipping” offer despite the cost of their product going up.
   Others say that sales dipped with the increased product price despite the “free shipping offer.
   It’s important to know your customer and to be ok with Implementing, Analyzing + Modifying as needed.

2. Check in on your Net Shipping Income / Loss Weekly to see how your offer is performing financially and if it is having the financial impact that you need it to. If not identify if packaging costs or shipping costs are the culprit and adjust as needed.

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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. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I have been working to bust the “30% Food Cost” and other ‘industry standard’ MYTHS for years. 

Good news: progress is being made and the result is an increase in profitable food businesses all across the country! 

Why am I so passionate about this? 

Simply put: Industry Standards are a danger to your profitability, period. 

Partially because the “standards” are for restaurants, NOT CPG Brands, Meal Delivery, Catering or Wholesale businesses. Partially because they are old and outdated. Mostly because industry standards are taken out of context and not incorporated into a holistic approach to building a profitable food business. 

That’s right, I said it. HOLISTIC. 

The parts of your business don’t operate in a vacuum...

...They are all interconnected
…Each must hit its goal
...They must work together to produce a profitable outcome.

Your business must be viewed as a whole. 

30% Labor Costs might be the right goal for your business! 
IF your other costs total less than 70%.
If they total more, hitting a 30% labor cost will result in monthly losses instead of profits.

One member of the Financial Success Formula program joined with a 25% labor cost and struggled with cash flow + financial sustainability

Another hits 38% labor costs and is consistently profitable! 

Let go of industry standards and find the RIGHT MIX of revenue + cost targets for YOUR business. 

READY TO GET STARTED? 

Get the control and confidence you need as a business owner and get your Profit Assessment to identify WHERE your business is on the road to profitability, and the next steps you can take to find the right targets for your business.

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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. and the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I get asked all the time…

How do I calculate the right price for my products?
What’s the right target number for my Cost of Goods Sold?
How can I make sure that my food business is profitable? 

My answer...

Find Your Financial Success Formula!

No two CPG Brands, Wholesale Businesses, Manufacturers, Caterers, or Meal Delivery Businesses have the same ingredient costs, labor costs, or operating costs. 

Your products may be similar.
Your suppliers could be the same.
But, your Financial Success Formula is all your own.   

…it is the key to helping you find financial success in your food business. 

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Want to learn more?

Tune in to the most popular episode of The Conversation Series to learn:

• What the Financial Success Formula is

• How to identify YOUR formula

• Why knowing your formula is critical to your success

• How you can use your formula to price your products, set budgets + more

Click here to listen now. 

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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 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. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

I know… You want your prices to be competitive. 

You may be thinking...
They are a successful business at the top of their game, so if I model what they are doing I’ll be heading in the right direction. Right? 
Wrong. 

NOTHING is as rosy and perfect as it looks on the outside.  
Take it from me - there are lots of  “successful” businesses with awesome products, killer sales numbers, and not a penny of profit to show for it. 

Pricing your products based on what the “top” brands in your market are doing puts you on the fast track to financial struggle. 

To achieve long-term, sustainable financial success you need to price your products right for YOUR business. 

Here’s a little story for you…
New clients of mine recently pivoted their business model to offer weekly meal delivery service. 
The changes to their business model were quick - they needed to create menus, price them, build a new webpage and start promoting FAST. 

To set prices they looked at other businesses making the same pivot and mimicked the pricing of the company that everyone respects and admires in their industry….

“We saw their pricing and figured they know what they are doing (they are super successful) let’s match their pricing and we should be good.”

Well, two weeks later that successful company was raising their prices!  
The message that sends is that they DIDN’T have it all figured out. 
They were likely losing money at the low price point they set and needed to make adjustments. 

Now my clients were seeking help to set prices that were right for their business, and stop chasing what others were doing. 
Smart Move! 

The time and money lost over the first few weeks can’t be recovered, but corrections can be made. 

Pricing your products based on the competition, your gut, or an industry-standard is one of the biggest mistakes I see food business owners make. And it costs you a lot of time and money. 

But, don’t feel bad if this is a mistake that you’ve made or are making. 
It’s an easy fix and I’m here to help you get it right. 

Building a financially sustainable and profitable business starts with knowing YOUR Financial Success Formula.  

If you’re eager to learn more…

Visit our products page here

AND OF COURSE, THE PROFITABLE FOOD BUSINESS COMMUNITY IS ALWAYS OPEN! 

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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 and is the host of the Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

You know that financial reports can be extremely valuable tools for building + operating a profitable food business.

But, be HONEST…. 

When you review your P+L Report do you think…
...What does it all mean?
...Is this SUPPOSED to be helpful?
...Do I not know how to read my P+L?!

Here’s the truth: It’s not you!  It’s your financial reports. 

Most business owners are working with very BASIC financial reports that don’t serve their needs, aren’t helpful in understanding their business, and worst of all, may actually be misleading!
⠀
The good news is that you have a say in what your financial reports look like.

When your reports are designed for YOUR business and are working FOR YOU, you can count on them to show you how your business is performing, set meaningful goals + get to work on building a profitable business! 

Here are 3 Signs that Your P+L Report is in Need of a Revamp:

1. All of your sales are lumped into one line item ... and you have more than one revenue stream⠀

2. All of your Cost of Goods Sold are lumped into a single line item called “Cost of Goods Sold”

3. Your Expenses are listed in Alphabetical Order⠀

Sound familiar?  Want to learn more?  
Watch my video above and don’t forget to subscribe to my YouTube channel to for more valuable information that will get you on the path to a profitable, successful food business.

Remember, financial reports can be extremely valuable tools for building + operating a profitable food business - but only if they're serving up the information you actually need.

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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. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

Food Costs play a BIG role in the success and profitability of your food business. 

But time and time again I meet business owners who have…
...cost out their products for the launch of their business and never revisit their calculations again
...never cost out their products 
...not paid attention to what their Food Costs are month-to-month. 

They have no idea what their TRUE food costs are!
And the result is low profit margins, inconsistent financial outcomes, and cash flow trouble. 

Here’s the GOOD NEWS:
Understanding your food costs, setting the right targets, and hitting them consistently isn’t hard, and you can get started TODAY.

In this video I share the #1… only takes a few minutes… BUSINESS CHANGING thing you can do today to Better Understand + Start Controlling Your Food Costs.

It’s the very thing that helped one of my program members identify that her Food Costs were 60% - that means 60% of revenue went directly to making her products, and just 40% was left to cover operating + labor expenses.  It became easy to see why she was experiencing consistent losses.

Another member discovered he had average Food Costs of 93%! He was floored, and truly had no idea!

A third member discovered his food costs ranged from 18-35% during any given month and the large swings were playing a BIG part in his cash flow issues

Follow the simple 2-step process to gain a better understanding of your food costs, start saving money and improve your profitability!

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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. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

No two food businesses are alike… BUT the financial struggles you experience and the solutions to those struggles are very much the same. 

There is no doubt about it - you WORK HARD. 

But if it feels like no matter how hard you work, 
no matter how consistent your sales are, 
or how much your sales grow...

...You aren’t achieving the financial results you desire
...You’re anxious about the day to day availability of money to pay your vendors, your team or yourself
...Or you simply don’t know what the right next step is for your business

You are NOT ALONE.  

And you don’t have to figure it all out on your own.

Together, our conversations will help you identify SOLUTIONS to your struggles and implement STRATEGIES so you can start to see FINANCIAL IMPROVEMENT.

I invite you to:

• Join other food + beverage business owners in THE PROFITABLE FOOD BUSINESS COMMUNITY and meet me on Instagram

  
  Listen in on educational talks + conversations with food business owners in The Conversation Series, where we talk about all things related to food business financials and building a profitable business.

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About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. 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. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.

You do NOT have to be a financial wiz to build a profitable food Business!

If you have these 3 key ingredients in place you can achieve financial success.

In this video I'm sharing:
- 3 Key Metrics to Know + Track for Your Business
- The Importance of Setting Cost Goals - it's not ALL about sales!
- My #1 Strategy for Achieving Your Food Business Goals

Share your takeaways and next steps for your business in the comments.

If you liked this content join me on Instagram for weekly videos.
Or hop on the mailing list (you can sign up in the footer) and have helpful resources delivered right to your inbox!

AND OF COURSE, THE PROFITABLE FOOD BUSINESS COMMUNITY IS ALWAYS OPEN! Ready to dig into the work?

Download the FREE Profitability Roadmap.

Raise your hand if…

...you’ve got growing or steady sales, but don’t have the profits + cash flow to show for it

...your financial outcomes vary month to month but you aren’t exactly sure why

...you’re working HARD and are ready for a clear path to profitability and the confidence to delegate your key tasks. 

Got a hand up? You’re not alone.

As food businesses grow + change, financial outcomes do too!
And it takes some work to get things back on track.  

If you start with these 3 key ingredients you’ll be on your way to consistent financial outcomes, financial sustainability + profitability in your food business. 

3 Key Ingredients for Food Business Financial Success:

1. Know Your Numbers!

   I call it your financial formula: the average food cost, operating cost + labor cost for your business, and what they total when you add them.
   It sounds basic and it is - but most business owners don’t know their numbers and as a result, they struggle financially for longer then they need to!
   

2. Set the RIGHT Goals

   All food biz owners want more sales - that’s a no brainer! But if you want more sales to equal more profits, you MUST have the right cost targets in place + you must hit them consistently, week in + week out. 
   

3. Inspect Your Expectations

   After you set goals, you’ve gotta track your progress and continue working to reach them.  
   Inspecting Your Expectations is the process of asking yourself and/or your team questions like…
   
   “Do we have all the tools, resources, and information needed to achieve this goal?
   “What prevented us from achieving our goal this week?  What would help us be successful?”
   “Are there breakdowns in communication that are preventing us from achieving this goal? Where are they and how can we improve them?”

Want to learn more? Click here to watch my recent video

Ready to start doing the work? The first step is to download my free Profitability Roadmap.

For the past 6 years I’ve been encouraging food biz owners with advice that I believe is both TIMELESS and TIMELY…

"SLOW DOWN" 

Look at what is happening in your business RIGHT NOW
Spend time with the numbers, identify any inconsistency in your business, and implement key changes so you can be PROFITABLE.

While this advice does come from years of working with amazing business owners + clients to help them become profitable, it also comes from personal experience. 

When I owned a food business, we thought that successful growth would come by repeating what we’d done at the beginning that brought us financial success. 

Makes sense, right?
Surely if we kept repeating that model over and over again, we’d incrementally have more profit. 

As we grew and added more locations for our business more revenue did come in... but our costs were outpacing it. 

We believed what so many other food business owners believe:
If we’re struggling with cash flow, and profits aren’t there...
We’ve got to do more, sell more, and work harder! 
We don’t have the time to look at our finances - we know what they’ll tell us!

Turns out, we didn’t know what our finances would tell us at all.
If my business partner and I took some time to look closely at our financials, we could’ve created a better STRATEGY that would’ve produced better OUTCOMES.

Instead, we continued to subscribe to the “SELL MORE” mentality. 
We were focused on the wrong goals, and in the end, closed the business. 

I didn’t know it at the time, but it would become my mission to help other food business owners avoid this outcome.

NOW is the time to dispel the belief that profitability comes by doing more and selling more.

Slowing down is not a luxury. It’s a hard thing to do, but it is vital. 
Digging deeper into the numbers may be scary, but I promise you... the more time you spend with them, the easier it’s going to get and the more empowered you are going to feel in your food business. 

This week, I encourage you to slow down for 10-15 minutes to spend some time
with your monthly Profit + Loss Statement. 

What does it tell you about your business - anything? 
Is the report helpful?  Is it confusing? 
Are your financial results consistent or inconsistent month to month? 
What else do you see?

If you’re a business owner who is not yet tracking your financials in accounting software I urge to find a way to start doing so.
The reports provide valuable information, but not only that, there are efficiencies to be gained and systems that can be implemented by utilizing your software as a tool.

Learn more about the importance of recording your financial data - and I’m not just talking about recording sales - in the Profitability Roadmap.

Click here for the free download.

Hey there, I’m Sarah delevan!
the good food cfo.

I’m on a mission to change our food system, one profitable food business at a time.

so We focus on food business financials here.

There is no one-size-fits-all formula for building a profitable food business, no standard calculation for pricing your products, no industry standard targets that will guarantee your success.

But there is a framework that you can follow

…to find the right cost and revenue formula for YOUR food business
…calculate the right price for YOUR products
…and create a clear vision for how to grow YOUR business successfully

And that’s exactly what I teach.

Because you’re reading this blog, I consider you part of the Profitable Food Business Community

What does it mean to be a member of this community? 

It means that you’ve got a place, and a person, to share the ups + downs, struggles + wins, frustrations + celebrations that all come with being a business owner,
and to get support when you need it. 

“If you want to go fast, go alone. If you want to go far, go together”  - African Proverb

You can share in the comments, meet me on Instagram or join me in the THE PROFITABLE FOOD BUSINESS COMMUNITY to connect with other food + beverage business owners in this community and for access to free monthly training + educational videos

Weekly Motivation + Support TO ACHIEVE your food business FINANCIAL GOALS

I’ll be sharing knowledge + support here on the Good Food CFO Blog, or directly to your inbox once a week.

I encourage you to reply with your thoughts, questions, and suggestions because I am able to serve you + this community best when there is dialogue.

I’m so happy you’re here!
xx
Sarah