Calculate Cost per Coffee Bag for Your Roastery
The green coffee invoice is only the starting point for a finished bag's cost. A useful pricing worksheet accounts for the coffee lost during roasting, the packaging used, and the work required to produce each bag.
Updated
Adjust green coffee cost for roast yield
Divide landed cost per green pound by roast yield to find coffee cost per roasted pound. At an illustrative $5 per green pound and an 85% yield, the roasted coffee costs about $5.88 per pound. A 12 oz bag contains 0.75 pounds, giving about $4.41 of coffee cost before packaging and labor.
Add the costs of making the finished bag
Add bags, labels, and direct production labor on the same per-bag basis. If packaging costs $0.90 and labor costs $0.80 per bag, the illustrative production cost becomes $6.11. Use actual purchase prices and measured labor time; these example numbers are not industry benchmarks.
Distinguish production cost from selling costs
Payment fees, order shipping, and other selling expenses also affect what a sale contributes to your business. Track those separately when comparing channels. A management pricing calculation is not a determination of how expenses should be classified in your accounting records.
Compare retail and wholesale using the same cost basis
Subtract the relevant cost from the selling price to find the dollars left per bag. Divide that amount by the selling price to express the margin as a percentage. RoastBase brings coffee costs, roast loss, packaging, labor, and wholesale pricing into one workspace so your decisions can use consistent inputs.