What Are COGS, Anyway?

One of the first things a smart food entrepreneur does is to calculate their cost of goods sold (COGS).

This information is vital for pricing your product correctly, and it’s not a one-and-done type of calculation: it should be done regularly in order to ensure maximum profitability.

As described in the link below, COGS are any costs involved in the production of a unit of your product. However, it doesn’t include everything: operating a successful business includes many marketing, branding, and other costs that aren’t calculated in COGS and still need to be factored into your business P&L.

Managing and optimizing COGS requires diligence and strategy. A number of tips on how to minimize cost and maximize profitability can be found here.

Read more on COGS below:

[pillar_card type=”vertical-link” image=”1757″ title=”Sources Of Equity Financing For Food Startups” subtitle=”Who is funding food businesses? These guys. Check out this list of equity financing for food startups and growth companies.” link=”http://realfoodmba.com/list-sources-of-equity-financing-for-food-startups/”][/pillar_card]

 

Get the Newsletter

Our weekly newsletter contains everything a food entrepreneur needs to stay current, share connections, and succeed in the business. Sign up for interviews with experts, insights from peers, and all the most relevant industry news. Don’t get caught without the resource every foodpreneur is talking about. Subscribe now!