Cost of Production

Perhaps the most basic concept in business – you need to price (and sell) your products for more than it costs you to produce.  You may not realize you’re losing money on one crop if you only look at your business as a whole unit. And if you’re losing money (or only making 10 cents a pound) then no volume of sales will create a sustainable business.  In this section, we’ll learn how to calculate the cost of production so that you know how to price your products, and earn enough to cover your overhead and pay yourself!

At the end of this section, participants will understand:

• Cost of production’s impact on pricing strategies
• How to calculate the cost of production for vegetables, livestock and value-added products
• QuickBooks features to better track time and expenses, enabling easy cost of production calculations
• How  to utilize cost of production to understand your break-even sales target