Costing for Profit
Course Outline
1. Lesson 1: Milk Chocolate
2. Lesson 2: Milk Chocolate with nuts
3. Lesson 3: White Chocolate
4. Lesson 4: White Chocolate with nuts
Now that you have learnt how to make chocolate, it’s time for you to start selling your product. However, one has to consider the cost of production in order to run a successful business and have a profit with each sale.
How much will my chocolate cost to make?
The cost of your chocolate is mainly determined by the weight of each chocolate piece. If you are using your own mould, you will need a food weighing scale to measure the weight of each piece. On the other hand, if you have purchased the Gyendi Chocolate starter pack (Ugx 35,000 only), which comes with a silicon mould, each solid piece of chocolate produced will be 10g.
Costing your first chocolate batch
1kg of Gyendi chocolate block will produce 100 chocolate pieces.
1000g ÷ 10g per piece = 100 pieces
Since each Gyendi Chocolate block costs Ugx 20,000, each chocolate piece will therefore cost Ugx 200.
Ugx 20,000g ÷ 100 pieces = Ugx 200 per piece
The chocolate wrapper which comes in the Gyendi Chocolate starter pack approximately costs 20/=. Therefore the cost of making and wrapping each solid chocolate piece will be Ugx 220/=.
For 100 pieces, the total cost of the chocolate will be Ugx 22,000.
To make reasonable profit of 180/=, the recommended cost of each chocolate piece should be 400/=.
Profit per piece = 400 – 220 = Ugx 180
The total profit for 100 pieces of chocolate from the 1kg Gyendi Chocolate block will be Ugx 18,000.
Total profit from 1kg Gyendi Chocolate block = 180 × 100 = Ugx 18,000
The total revenue for 100 pieces of chocolate from the 1kg Gyendi Chocolate block will be Ugx 40,000.
Total revenue from 1kg Gyendi Chocolate block = 400 × 100 = Ugx 40,000
Cutting costs to make higher profit
The ultimate goal of every businessman or business woman is to make profits with each transaction. Whereas solid chocolate is a good start, it is better to add filling within the chocolate with alternative snacks such as ground nuts, bagiya, simsim, soya, biscuits, cookies or any other tasty filling you have in mind. Extra fillings in chocolate make it even tastier.
The beauty with filling is that they can half the cost of a chocolate piece from 200/= up to 100/= just by reducing the amount of chocolate needed and filling the volume with a cheaper ingredient.
Possible chocolate fillings that you can use
Ground nuts
Bagiya
Simsim
Soya
Biscuits
Cookies
Costs cutting using groundnuts
In this tutorial, I have chosen to work use ground nut as the chocolate filling. The demonstration used here will work for any other filling you may choose.
1kg of roasted ground nuts costs Ugx 7,000.
1kg of Gyendi chocolate block mixed with 1kg of roasted ground nuts will produce 200 chocolate pieces.
2000g ÷ 10g per piece = 200 pieces
Since the Gyendi Chocolate block and groundnut costs Ugx 27,000, each chocolate piece will therefore cost Ugx 135.
Ugx 27,000 ÷ 200 per piece = Ugx 135 per piece
The chocolate wrapper which comes in the Gyendi Chocolate starter pack approximately costs 20/=. Therefore, the cost of making and wrapping each solid chocolate piece will be Ugx 155/=.
For 200 pieces, the total cost of the chocolate will be Ugx 27,000.
Just by adding ground nuts, the cost has been cut drastically. 200 pieces can be produced for Ugx 27,000 instead of Ugx 40,000.
With a reduced cost, you can easily reduce the price to increase sales and attract more customers
To make reasonable profit of 145/=, the recommended cost of each chocolate piece should be 300/=.
Profit per piece = 300 – 155 = Ugx 145
The total profit for 200 pieces of chocolate from the 1kg Gyendi Chocolate block and 1kg of groundnuts will be Ugx 29,000.
Total profit from 1kg Gyendi Chocolate block = 145 × 200 = Ugx 29,000
The total revenue for 200 pieces of chocolate from the 1kg Gyendi Chocolate block 1kg of groundnuts will be Ugx 60,000.
Total revenue from 1kg Gyendi Chocolate block = 300 × 200 = Ugx 60,000
Conclusion
In this class, the basics of cost calculation have been covered along with how to produce chocolate for profit.
One important tip for newbies is that with whatever moulds you have chosen to use, you should make a sample batch and see how many total pieces you can obtain from batch. This will help you cost efficiently how much money you are inputting and also help you calculate the number of possible pieces you output. All these figures will enable you to efficiently calculate your cost..
- Heat source
- Double boiler –can be made using 2 saucepans
- Spatula
- Dispenser
- Moulds /Ice cube trays
- Fridge
- Airtight containers
- Aluminum foil
Share your baking results & challenges for feedback plus support on Gyendi Cocoa's Baking & Chocolate class.
