Pricing homemade bread

[Belfrybat]

A neighbour has asked if I would make him a a loaf or two or raisin bread once or twice a month. I have a bread machine, so it's not much work. But I really don't know what to charge him. Raisin bread in the store sells for between $2.79 and $4.35. My loaves are a bit smaller (1-1/4 pounds vs. 1-1/2). Do you have any idea what a decent price would be? I'm leaning towards $2.50, but not sure .

[Callieslamb]

I'd go for $3. It's still well within what he's paying now and yours will be much better - warm even!

[stormwalker]

What's the relationship like?
Is he helpful?...etc.

[Common Tator]

Have you figured out what your cost to make a loaf is?

[texican]

Originally Posted by stormwalker

What's the relationship like?
Is he helpful?...etc.

If I made bread regularly, I'd do it for free. There are very few times in life you can buy so much goodwill for only a buck or two a month in ingredients and a couple of pennies worth of electricity.

Stranger you've never met before, yeah Cash is King.... neighbor you know??? good will/karma is priceless.

[stormwalker]

Originally Posted by texican

If I made bread regularly, I'd do it for free. There are very few times in life you can buy so much goodwill for only a buck or two a month in ingredients and a couple of pennies worth of electricity.

Stranger you've never met before, yeah Cash is King.... neighbor you know??? good will/karma is priceless.

Absolutely!

[Harry Chickpea]

You can do an occasional gift, but otherwise, don't make the mistake of underestimating the cost of your time and effort, which is the cause of more bad feelings and even failed businesses than you might think.

If flour is $2.50 for 5 lbs, that is 50 cents per pound (plus any tax).
Raisins can be pricey, especially if you use golden raisins. You'll have at least .25 in a loaf.
Sugar, milk, egg? Recipes vary, but add another .25 to cover.
Electricity in the breadmaker is, like texican says, a couple of cents. If you take it out and do the loaf in the oven, figure ten cents.

Your materials cost per loaf, if you include something for gas going to the store, is probably at least $1.25. Ten minutes labor (include clean-up) at a super-cheap $6.00/hr is another $1. Wiggle room for inflation, and you get to your $2.50/loaf figure pretty easily.

Next comes the nuisance factor. Are you willing to make bread twice a month for the next two years or more, no matter what else is happening? Will the neighbor be continually pleased or will there be an awkward moment in the future?

If you want to do it, I'd suggest a trial - three months, two loaves per month, $3 or more per loaf (more wiggle room, a little profit), and if neighbor wants to continue after that, three month commitments each time with specific delivery dates, price adjustments for inflation at the three month points, with the understanding that either of you can opt out without cause or guilt on the three month date. If the loaves haven't been paid for at the three month point, end of story. That would cut your loss and allow you to still have an ongoing relationship.

[oregon woodsmok]

Loaves of bread as gifts are for occasionally and when I am in the mood and baking anyway. 2 loaves a week as a standing order is a chore and it gets paid for.

No different than mowing lawns. If the neighbor broke his leg, I might go over and mow for free. But I won't go over and mow every Saturday all year long for free. Nor do I feed and water his livestock every day unless he is paying.

Unless he is bedridden, he is capable of baking his own bread. he has chosen to pay to have someone else do it for him.

[Belfrybat]

Thanks, all for your replies. I make bread on a regular basis, but since I'm diabetic I keep a small loaf and give the other larger one away. I have three close neighbours and they have all benefitted, including the one who asked for raisin bread (something I don't usually make). This neighbour has never offered to help me. Well, actually he offered to mow my lawn last year when I was down with a nasty cold/virus but wanted $40.00. OTOH, the neighbour on the other side came over without asking and just mowed it since he knew I was ill. Those neighbours also showed up a few weeks ago with a load of firewood. Needless to say, they get bread and other stuff on a regular basis.

I'm not stingy, but if I'm going to make a bread I don't usually make for someone who does not reciprocate favours, then I don't think charging is out of line. I made a trial loaf and gave that to him and he asked how much -- I gave it free since it was a first try. He called and "ordered" two more for next week and asked me how much. Hence my question.

[Trisha in WA]

I pay $3.50 at the farmers market for cinnamon raisin bread. Baked fresh the day before. Actually by the end of summer I think it may have gone up to $4
I don't know what the local economy is where you are, but our local economy is in the tank! And she sells out every week.

[rags57078]

with what you have told us charge $3.50

[Ed Norman]

I used to live next to an old couple. She loved to bake, he didn't like desserts. So I would often have her baked goods waiting on my front porch when I got home from work. I did favors for them when they needed something. No money changed hands.

However, this guy asked you to bake bread for him. I never asked for a thing from the old gal. Big difference.

DW sells her bread for $3-4.50 a loaf, depending upon the kind. It isn't bread machine stuff, though.

[stormwalker]

Originally Posted by Belfrybat

, actually he offered to mow my lawn last year when I was down with a nasty cold/virus but wanted $40.00. OTOH, the neighbour on the other side came over without asking and just mowed it since he knew I was ill. Those neighbours also showed up a few weeks ago with a load of firewood. Needless to say, they get bread and other stuff on a regular basis.

I'm not stingy, but if I'm going to make a bread I don't usually make for someone who does not reciprocate favours, then I don't think charging is out of line. I made a trial loaf and gave that to him and he asked how much -- I gave it free since it was a first try. He called and "ordered" two more for next week and asked me how much. Hence my question.

Reading all his behavior, $4 a loaf!!!! Without a blink of my eye!!!
I love my old neighbors!

[orangehen]

The guy I get milk from told me last year that he would supply me with a year's worth of wood for my woodstove if I would keep him supplied with bread. I, too, love to bake, and usually knead up 7 to 10 loaves at a time, usually partially whole-wheat. I use glass bread pans, and the loaves are large.

Well, this fall, he did bring a couple of loads of wood......punky stuff that feels sort of like styrofoam, and burns about as good.....

No more baking for him. How would HE feel if he brought me good, heavy wood, and I gave him barely edible bread in exchange? If he wants bread now, I'm going to charge at least $4.00 a loaf - then I can BUY good wood.

[Joshie]

I wouldn't charge him at all. Even though he wanted to charge you for doing your lawn, making bread is a neighborly thing to do. If you start doing things like this for him, maybe he'll start doing them for you. Having good neighbors, ones that will put their necks out for you, is vital out in the country. I'm of the mind that whether your neighbor is a good one or not, you need to be a good one. My neighbor's stinginess or poor behavior is not related to mine. Plus, if you do it just to be neighborly, you don't have to feel obligated to do it at any certain time.

[HilltopDaisy]

Yeah, it depends. I think you've had a lot of responses, and you can figure it out from here.

I can think of several neighbors who might ask about "home-made bread", and I would have a different response for each one.

[Qhorseman]

I buy homemade bread from the mennonite store for $3 a loaf

[||Downhome||]

let him buy the Ingredients, and you do the Baking.
Just let it be known you may call in a favor or two in the future.

I could see factoring a price,which Harry has done a excellent job of the break down of such.
But only if I was doing a lot of business.
A couple loaves a month really would be more of a favor then any thing.

[wy_white_wolf]

Bountyful Baskets runs 2 to 2.50 per loaf for 5 loaves. Some of the specialty bread bring 5 to 6 a loaf.

Being a nieghbor I might try to barter before setting a price.

[Pam6]

$3-$4 a loaf. Once or twice a year is being neighborly. Once or twice a month is work.