Challenge! How can I reduce the cost of my hedgehog slice?

[Sim]

Hi all

I know so many of you are baking experts so I'm hoping you can help me out here. I've recently started supplying slices and baked goods to cafes (yay). I'm being very particular about costings but somehow my hedgehog slice costings were wrong. Its now very popular and I want to keep it but make some adjustments. I'm still making profit from it but not as much as I need to make it worthwhile.

I'm already getting the chocolate at a very good price, but clearly it's an expensive addition to the base. I can make my own condensed milk but when I factor in the labour, it's better for me just to buy it in cans. So, my current thoughts are the reduce the thickness of the slices slightly and also reduce the chocolate and add cocao powder mixed with something??

Help! Pretty please!

BASE:
DRY MIX
Milk arrowroot biscuits $2.18
Shredded coconut $0.41
Walnuts $1.98
Cocoa powder $0.55

WET MIX
Dark 65% chocolate $3.60
Butter $1.08
Sweetened Condensed milk $3.61

TOP:
Copha $1.22
Dark 65% Chocolate $3.00

Currently each portion is costing me $1.10 ($17.62 for 16)
I really need it to cost $0.75 ($12.00 for 16)
Saving $5.65

[goldfish]

I'm not in the expert category of which you speak!!!  but just a thought.... If this slice, the way you're making it now, is really popular, then I'd try not to change the ingredients (however,  the experts may weigh in on this with some really good suggestions).

Would it be possible that sometime in the future you could simply raise your selling price?

Congratulations, by the way, on your breaking in to the cafe business!!!

[Sim]

Yeah I guess I run the risk of changing the taste too much. I'm going to raise the price a little. I've discussed this with them and they're OK with it. But I quite badly under-costed it. I'm selling it for $2.50 (that's the new raised price), but what I really need to sell it at is $3.70.

[judydawn]

It's lovely to see you again Sim and congratulations on making money from your TMX.  I wonder if you can buy condensed milk in larger cans for commercial ventures such as yours.  Have you looked Into that aspect?  Are you using Arnotts biscuits or a generic brand?  Can you buy them wholesale?  I'd be looking into purchasing in bulk or direct through a manufacturer/supplier to cut costs. Do you make your own butter, you need to purchase cream thrown out cheaply due to a close use by date for this to be worth the effort though.

Apart from this, I have no idea Sim LOL. Good luck with it.

[Kimmyh]

Hello, what about omitting the copha? I use 1 tabs of vegetable oil stirred through the melted chocolate for my slice topping. Gives a glossy finish and helps stop cracking when cutting.  You could also look into making your own biscuits. Hope this helps.

[fundj&e]

selling them for $3.70 to the cafe owner is a bit to much, do you know how much they are selling them .



i am with GF  if its not broken dont fix it

when you 1st starting out the labour cost will be high, thats one thing you just have to put a with

[cookie1]

Welcome Sim. I would love to do what you are doing, so congratulations.
Are you buying your biscuits in bulk? At least by the carton? Could you reduce the walnuts by just a tiny bit?
In the wet mix would it be possible to reduce your chocolate to say 50% without altering the taste? Or maybe go up to 70% and use not as much?
These ideas may alter the taste though. How big are the pieces of hedgehog? Is there the possibility of changing the shape slightly and reducing the size? If it is square, make it a rectangle or vice versa

[gertbysea]

Can you buy broken walnuts in bulk?  People here say the Wioolworths' Cocoa is really good and  may be cheaper than you are using.you really cannot compromise on the quality of the chocolate but  try cookie's suggestion.

Gert

[fundj&e]

I have been thinking about this , could you reduce the price of the other products or give away 6 plain muffins

[achookwoman]

There are quite a few ways to cut cost.  Most have been mentioned. Home brand biscuits, broken walnuts, homebrandbutter And I would use the oil in the top.  I wiouldalso experiment with cocoa in the filling insteadofchocolate.  Good luck Sam, 

[Sim]

Thanks all. At the moment I get most of my supplies from ALDI which come in cheapest across the board. I'm getting a price list from a supplier this week. But so far my research suggests that ALDI is actually cheaper than many suppliers but we'll see. I've discovered that condensed milk is available in 10kg bladders, I just need a price. I may be able to reduce the size by 20% or so.

I'll take all your points and see what I can do. So frustrating!

[obbie]

So if its costing you $1.10 per slice, and your selling them $2.50, that is 125% mark up. pretty good.

[Melinda]

So if its costing you $1.10 per slice, and your selling them $2.50, that is 125% mark up. pretty good.

Actually it's not quite that high.  She hasn't costed in packaging, transporting, licensing, equipment purchase/replacement or electricity costs, let alone labour and time.  It's more likely closer to only a 50% markup or even less.

[cookie1]

Very true.