Selling homemade dog treats can be a great way to earn some extra income while doing something you enjoy. However, determining how much to charge for your homemade treats can be tricky. Here are some tips on pricing homemade dog treats to maximize profits:
Factor In Your Costs
The first thing you need to do is calculate your costs so you can price your treats accordingly. Be sure to account for:
- Ingredients – Add up what you spend on ingredients per batch or per treat. This may vary depending on recipes.
- Packaging – Whether you use baggies, boxes, or jars, factor in costs for packaging materials.
- Labels – Creating professional looking labels will add to your overall costs.
- Equipment – Consider costs for any baking equipment, tools, molds, cutters, etc. you use to make your treats.
- Time – Estimate how long it takes you to make each batch and package the treats. Decide how much you want to get paid per hour for your time.
- Transportation – If you’ll be doing any driving to purchase supplies or deliver treats, include mileage costs.
Add up all these expenses to determine your minimum baseline cost per treat or per order. You’ll want to price your treats so that you make enough profit above your costs.
Compare to Other Homemade Treats
Research prices for other homemade dog treats being sold in your area or online. Look at treats that are similar in terms of ingredients, size, packaging, and preparation method. Some places to check prices include:
- Farmer’s markets
- Craft fairs
- Pet boutiques
- Etsy
- Facebook groups and Marketplace
See what the going rate is for comparable homemade treats. While you don’t need to match the lowest price, pricing yours too high above the competition may make them a tougher sell.
Factor In Dog Size
An important pricing factor is accounting for dog size. It typically makes sense to charge more for treats for larger dogs since they require more ingredients per treat. Here are some common price ranges based on dog size:
| Dog Size | Treat Price Range |
|---|---|
| Small breed dogs (under 20 lbs) | $2 – $5 per 4 oz bag |
| Medium breed dogs (21-50 lbs) | $5 – $7 per 6 oz bag |
| Large breed dogs (over 50 lbs) | $7 – $10 per 8 oz bag |
You can further adjust prices within these ranges based on how expensive your specific ingredients are.
Consider Ingredients & Special Diets
Some ingredients and dietary considerations call for higher price points. Treats made with organic, natural, or premium ingredients tend to command more value. The same goes for treats made for dogs with special diets like:
- Grain-free
- Low calorie
- Low fat
- Limited ingredient (for dogs with allergies)
You can justifiably charge 20-50% more for treats made with pricier ingredients or tailored to specific diets. Just be sure to promote this in your packaging and marketing.
Consider Your Production Method
The way your treats are produced can impact pricing as well. Treats made using more time-intensive methods or uncommon preparation types may be priced higher. Some examples include:
- Dehydrated or frozen treats
- Treats made in silicone molds or with custom shapes
- Treats with fillings or mix-ins like peanut butter
- Treats needing refrigeration, like “pupsicles”
These production methods often require specialty equipment and extra steps, so factor that in. Being able to tout artisanal or handmade methods can help rationalize the higher cost to buyers too.
Think About Value Packages
Offering value packages or bundles can be a smart pricing strategy. This allows you to reward bulk purchases while making the per-unit price more attractive. For example, you could price items like:
- Single treat: $2
- 3 treats: $5
- 6 treats: $9
- 12 treats: $16
The per-treat cost decreases the more a customer buys. Just be sure your profit margins still make sense after the bulk discounts.
Price for Your Goals
Ultimately, the prices you set for your homemade dog treats will depend on your specific goals. If maximizing profits is your main aim, you’ll want to lean towards higher pricing. But if you primarily want to grow your customer base, lower prices could make your treats more accessible.
It often makes sense to start on the higher end of your comparable price range. You can always offer sales, deals, and discounts down the line. But it’s harder to increase your base price once customers get used to a lower amount.
Clearly Communicate Value
Whatever you decide to charge for your homemade dog treats, be sure to communicate the value to your customers. Make it clear through your branding, packaging, and messaging why your treats merit the price. Highlight quality ingredients, your homemade methods, specialty diets accommodated, and any other details that explain the care put into your products. This can help justify the pricing in buyers’ minds.
Be Flexible
Don’t be afraid to adjust your pricing over time if needed. Track which treat varieties sell best and tweak prices accordingly. Run periodic sales and see if lowering costs boosts demand. Be willing to experiment to find the optimal pricing strategy. Just be sure to keep covering your costs and earning a profit. Making great homemade treats dogs love is most important – finding the right price to sell them at will come with time and experience.
Conclusion
Pricing homemade dog treats involves weighing several factors like costs, competition, production methods, and target profit margins. While pricing is part science and part art, keeping some key considerations in mind can help you land on an appropriate price range. Do your homework on costs and comparable treat prices. Offer volume discounts and prime pricing for specialty ingredients or diets. And clearly communicate what makes your treats worth the price you set. With the right balance of profitability and perceived value, your homemade treats can find success in a crowded market.