Not legal, tax, or compliance advice. Rules vary by jurisdiction. This lesson is educational orientation — verify specifics with licensed professionals and your local authorities before acting.

Why you need rough math

Pricing without knowing your costs is guessing. You don't need accounting software or a finance degree — you need three rough numbers so you can sanity-check whether a booking makes money or loses it.

The three numbers

1. Rough cost of goods (COGS)

What you spend on food and consumables for a typical cook day. Not a precise ledger — a realistic estimate.

  • Track grocery receipts for 2–3 cook days. Average them.
  • Include disposables: containers, labels, foil, parchment, cleaning supplies.
  • If you bill groceries separately at cost, your COGS is lower but your quoted price looks lower too — be clear with clients about what's included.

Example (illustrative, not a target): $80–$150 per cook day for a family of four, depending on proteins and dietary complexity. Your number will be different.

2. Time invested

Not just cook time. Include:

  • Menu planning and client communication.
  • Grocery shopping and transport.
  • Prep, cooking, plating/packaging, labeling.
  • Cleanup and drive time (both directions).

A "4-hour cook day" often takes 6–8 hours when you count everything honestly. Track a few real days before using this number in pricing.

3. Floor price

The minimum you'd accept for a cook day and still feel the work was worth doing. This is not your rate — it's your walk-away number.

  • Floor = COGS + (hours × minimum acceptable hourly value) + travel costs.
  • If a booking falls below the floor, it costs you money or sanity to accept it. Say no or restructure.
  • Your actual rate should be above the floor — the floor just tells you when a deal has crossed into losing territory.

What this is not

This is planning math for your own decision-making. It is not tax preparation, it is not financial advice, and it does not replace working with a qualified accountant or CPA. Costs like insurance, self-employment taxes, equipment depreciation, and business overhead are real but outside the scope of a rough floor-price exercise. When you're ready to formalize your pricing and finances, that's a conversation for a professional — see the lesson on finding an accountant.

Pricing psychology (briefly)

  • Don't anchor to restaurant prices. You're providing a different service — personalized, in-home, dietary-specific. The comparison doesn't hold.
  • Don't race to the bottom. Low prices attract clients who optimize for cost, which usually means high-maintenance bookings with thin margins.
  • Do publish a range or starting rate if you're comfortable — it filters inquiries and saves time for both sides.

Before you continue

Fill in your worksheet: rough COGS per cook day, total hours per cook day (honestly), and floor price. These are for you — you don't share them with clients. Compare the floor to what you're currently charging or plan to charge. If the gap is uncomfortable, the next lessons on deposits and policies will help you build structure around it.