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Kitchen and Labor Expenses

Accounting the cost of your kitchen and labor expenses establishes the foundation for your production costs.

  1. Under Production Hours, enter in the number of days per month that you manufacture your products in the Production Days Per Month field

  2. Enter in the number of hours per day that you manufacture your products in the Production Hours Per Day field

  3. Under Production Costs, select your Kitchen Type from the dropdown

  4. Enter in your kitchen cost per month

  5. Enter in the total number of workers who are responsible for making your products

  6. Enter in your total cost labor cost per month. If this value fluctuates feel free to use an average or the highest you've paid in the last 6 months.

  7. Save your information by clicking the Save button in the top-right

Facility and labor expense in Prophit

Tip: If you currently don't have any kitchen and/or labor expenses (because you happen to produce your goods in home and produce them yourself), we recommend entering an expense that is typical in your market. If you plan to grow your business but decide not to add production expenses, it's likely you'll be selling products that are no longer profitable once you take on the additional costs that come with renting a kitchen and hiring employees. You could raise your prices to counter the costs, but could potentially lose your customers and their loyalty in the process.

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