1. Foreword

We often have the opportunity to talk to bakery owners about the reasonable profits of bakeries. We feel that many bosses have doubts about the cost calculation and profits of bakeries. There is not much concept of goals. They only know that the product can be made and sold, and they seem to be making money. They are satisfied that the money collected in the store will not be short. There is no principle on how to reasonably price the various products produced by oneself. I just look at how others sell them and simply decide whether they should be cheaper or slightly more expensive than others to complete the pricing. Only the owner will know at the end of the year whether a bakery operating this way is profitable. It is more difficult to talk to them about how to increase the profits of the bakery because they have no way of knowing how much profits they currently have and how to increase them.

II. Cost structure of bakery

What is the profit of bakery? To put it simply, the bakery deducts some raw materials, production, labor, sales and other expenses from its daily income, and what is left is profit. Before introducing the methods on how to increase the profits of the bakery, we must first introduce some information about the cost structure of the bakery. With these clear concepts, we can accurately calculate and manage the operating costs of our own bakery, and then introduce some ways to increase profits. method can be effective.

(1) Production costs

Production costs include the following aspects:

1. Direct raw material costs: required in all formulas The cost of raw materials such as flour, oil, sugar, milk powder, salt, improvers and other additives.

2. Indirect raw material costs: including the lining paper used for baking sheets, plastic boxes used to store baked goods, various containers used to weigh raw materials, etc.

3. Loss: includes losses caused by improper operation by workers, damage to baked goods during packaging and transportation, or losses caused by products that are returned because they are not sold.

4. Direct labor cost: refers to the wages of workers directly used in the production of baked goods, such as the wages of masters and the weighing of raw materials, etc. It can be calculated in hours and production quantity.

5. Indirect labor costs: refers to the wages of those personnel who are not directly involved in production, that is, the wages of management personnel, sales personnel, general affairs, cleaning personnel and other related personnel.

6. Depreciation of equipment and plants: refers to plants and equipment that are real assets at the beginning of investment. After years of use and operation, their original value will decrease year by year, so according to their use The service life will be reduced reasonably year by year as part of the cost.

7. Site rental: refers to the fixed expenses for renting a production site.

8. Packaging material costs: refers to the material costs used to package bakery products.

9. Water, electricity, and gas costs: refer to the water, electricity, and gas costs consumed in the production of baked goods.

10. Miscellaneous expenses: refers to the expenses for purchasing cleaning supplies, product advertising and promotion, repair and maintenance of machinery and equipment, corporate relations, that is, participation in various trade unions and social activities, etc.

(2) Marketing costs

Marketing costs include the following aspects:

1. Personnel expenses: including management personnel, marketing personnel, Cleaning staff wages.

2. Rent: refers to the fixed fee required to rent a bakery store.

3. Equipment depreciation: refers to the reasonable evaluation of the value of some fixed investment facilities such as display cabinets and air conditioners in the bakery in a year-by-year manner.

4. Recycled products: refers to baked goods that were not sold that day or were damaged due to human factors.

5. Transportation costs: refers to the cost of transportation of baked goods from the factory to the bakery.

6. Promotional expenses: The expenses required by the bakery to carry out some promotional activities to expand the popularity of the bakery and its products.

7. Tax expenditure: Income tax paid by the bakery according to national regulations.

8. Miscellaneous expenses: expenses related to corporate relations, vehicle insurance, vehicle gasoline, cleaning supplies, etc.

(3) Profit

What is left after the bakery has paid some of the above expenses is the pre-tax profit. After deducting the tax payable, it is what the bakery can actually get. profit.

We can understand from the above bakery cost analysis that to increase the profit of the bakery without increasing the product price, it is to work hard on various expenses and reduce waste so that the remaining profit part can be increased. We can also understand that the baking industry is not a high-profit, high-income industry. You cannot use the cheapest raw materials to make the most expensive products and earn the highest profits. Therefore, the bakery's profit depends on every employee working together to pay attention to every detail anytime and anywhere to reduce waste and achieve the goal of adding up a little to make a big difference.

These methods of creating or maintaining profits rely on time and the efforts of all personnel. In particular, the concepts and daily habits of staff have a great impact. How to educate employees to develop good working habits and attitudes is a very important project for us to improve the profits of our bakery.