How to Favourably Price Everyday foods
Favourably pricing Everyday foods
When it comes to buying from a canteen, the cost of an item is often the ultimate decider for kids. Pricing Everyday items favourably can be the final nudge to get kids to make healthier choices.
Knowing how kids typically spend their money in the canteen can help you get savvy with pricing. Primary school aged kids tend to spend their money in one go while older kids in secondary schools want value for money and like specials.
A school canteen, after all, is a food business and all expenses that come from running a business need to be covered in the sale price of items. This is where a mark-up on the cost of the item comes in, to cover all the bills to break even or to make a profit.
Once you’ve done a mark-up, you can offer Everyday items at a more tempting, lower price such as a mark-up of only 100% by applying a higher mark-up such as 200% to Occasional items.
For example, Occasional snacks such as potato crisps can be sold at a mark-up of 200% while Everyday snacks such as a fruit cup can be sold at a mark-up of 100%.
This allows for Everyday items to be priced attractively while making sure that all costs are covered.
Everyday example, Mango public school buys the ingredients for one chicken soup from their supplier for $1.00. The soup is Everyday so the canteen decides to prices the soup in a way that will encourage students to buy it, so the mark up will be 80%.
$1.00 x 80/100 = $0.80
This means that the profit the canteen will make for each soup is $0.80.
The total selling price would be the cost of the soup plus the profit.
Occasional example, Mango Public School canteen buys a packet of plain air-popped popcorn from their supplier for $1.20. The popcorn is Occasional, so the canteen decides to mark it up by 200%.
$1.20 x 200/100 = $2.40
This means the profit the canteen will make for each packet of popcorn is $2.40
The total selling price would be the cost of the popcorn plus the profit
$1.20+$2.40 = $3.60
If you have any questions after completing this step, contact the Healthy Kids Support line on (02) 9876 1300 or 1300 724 850 if you are calling from outside of Sydney.