How to Price Your Home-Cooked Meals to Sell
You've decided to share your cooking with neighbors. Great! But how much should you charge? Price too high and no one buys. Price too low and you lose money. Here's how to find the sweet spot.
The Pricing Formula
At its simplest:
Price = Ingredient Cost + Time Value + Margin
Let's break down each component.
Step 1: Calculate Ingredient Costs
Track Every Ingredient
For a recipe, list everything used:
Example: Beef Stew (serves 6)
- Beef chuck: $12 (2 lbs)
- Potatoes: $2 (2 lbs)
- Carrots: $1.50 (1 lb)
- Onion: $0.50 (1 large)
- Beef broth: $3 (32 oz)
- Tomato paste: $0.75
- Seasonings: $0.50 (estimated)
- Oil: $0.25
- Count only what you use (if rest will be used elsewhere)
- Prorate some waste into the cost
- maybe 15-30 minutes for shopping, prep, and portioning.
- Extra time: 20 minutes = $5 at $15/hour
- Per serving (6 portions): $0.83
- Covers unexpected costs
- Compensates for effort
- Makes the activity worthwhile
- Base cost per serving: $3.42 + $0.83 = $4.25
- With 30% margin: $4.25 × 1.30 = $5.53
- Comparable restaurant meal: $15-25
- Takeout option: $12-18
- Other meal-sharing offerings: $8-15
- Ingredients per serving: $2.50
- Time allocation: $0.50
- Margin (30%): $0.90
- Suggested price: $4 (rounded)
- Ingredients per serving: $3.42
- Time allocation: $0.83
- Margin (30%): $1.28
- Suggested price: $5.50 or $6
- Ingredients per serving: $12
- Time allocation: $2
- Margin (25%): $3.50
- Suggested price: $17-18
- delicious, home-cooked food without the work of cooking.
- You resent making the food
- You're not covering your costs
- Demand far exceeds what you can supply
- No one orders
- Neighbors comment on prices
- You're competing with restaurants, not providing value
- Packaging containers
- Gas/electricity for cooking
- Delivery time (if applicable)
- Platform fees
- Round to the nearest dollar or fifty cents.
- Selling out quickly? You might be underpriced.
- No bites? Consider lowering or improving your photos/descriptions.
- Covers all your costs (ingredients, time, overhead)
- Provides reasonable compensation for your effort
- Offers clear value compared to alternatives
- Feels fair to both you and your customers
- it's to create a sustainable exchange that benefits everyone. Your neighbors get great home-cooked food at fair prices. You offset your grocery costs while doing something you enjoy. That's the recipe for success.
Total ingredients: $20.50
Per serving: $3.42
Don't Forget the Small Stuff
Seasonings, oil, butter, and pantry staples add up. Estimate $0.50-1.00 per recipe for these basics.
Account for Waste
If you buy a whole bag of carrots but only use half, you can either:
Step 2: Factor in Your Time
Your time has value. But how much should you charge for it?
The Meal-Sharing Reality
If you're cooking anyway for your family, the extra time for additional portions is minimal
At a modest $15/hour, that's $3.75-7.50 per batch spread across all portions.
Example continued:
Be Realistic
Meal sharing isn't professional catering. You're not running a restaurant kitchen. The time premium should be modest.
Step 3: Add a Margin
You should make something beyond covering costs. A reasonable margin:
Typical margin: 20-40% of costs
Example continued:
Step 4: Reality Check
Before finalizing your price, consider:
Competitor Pricing
What do similar meals cost locally?
Your price should feel like a good deal compared to alternatives.
Portion Size
Are you selling a side dish or a full meal? Adjust accordingly.
Perceived Value
Some dishes seem more "special" than others. A complex curry might command more than simple pasta, even with similar costs.
Your Market
Pricing varies by neighborhood. Adjust for local economics.
Pricing Scenarios
Scenario 1: Simple Pasta Dish
Scenario 2: Beef Stew
Scenario 3: Special Occasion Dish (Prime Rib)
Common Pricing Mistakes
Underpricing
Many home cooks undervalue their work. Remember: you're providing a valuable service
Signs you're underpricing:
Overpricing
Conversely, pricing too high kills demand.
Signs you're overpricing:
Forgetting Hidden Costs
Build these into your calculations.
Inconsistent Pricing
Similar dishes should have similar prices. Random pricing confuses buyers.
Pricing Psychology Tips
Round Numbers
$6 feels cleaner than $5.
Value Bundles
"Two portions for $10" can work better than "$5.50 each."
Seasonal Adjustments
Ingredient costs fluctuate. It's okay to adjust prices seasonally.
Premium Positioning
Slightly higher prices can signal quality. Don't race to the bottom.
Testing Your Prices
Start somewhere reasonable, then adjust based on:
Demand Signals
Customer Feedback
Ask returning customers if they feel the value is fair.
Your Own Satisfaction
You should feel good about the exchange. If you resent the work, prices are wrong (or this isn't for you).
A Sample Pricing Sheet
Use this as a starting template:
| Dish Type | Ingredient Cost | Time | Margin | Price Range |
|-----------|----------------|------|--------|-------------|
| Simple pasta | $2-3 | $0.50 | 30% | $3-5 |
| Rice/grain bowl | $3-4 | $0.50 | 30% | $5-6 |
| Chicken dinner | $4-5 | $0.75 | 30% | $6-8 |
| Beef/pork dinner | $5-7 | $0.75 | 30% | $8-10 |
| Seafood dinner | $6-10 | $1.00 | 25% | $10-14 |
| Special dish | $8-15 | $1.50 | 25% | $12-20 |
The Bottom Line on Pricing
Good pricing:
Don't overthink it. Start with your costs plus 30%, compare to local alternatives, and adjust from there.
The goal isn't to maximize profit