Hi there!
I have a store that sells bulk candy in a pick & mix fashion (eg. customers can fill bags with any candy they want for $10 / pound). However, my costs for the different candies vary (eg. $1/pound, $2/pound, $4/pound). Does anyone know how to best account for the blended costs in Square to get an approximate profit margin?
Thanks!
Hi @SweetT1!
Just so I’m on the same page, do your customers fill a single bag with a mix of different candies, and you then charge one price per bag?
If so, the only way I can think of to ensure more accurate pricing and profit margin tracking would be to have customers fill separate bags for each candy type, then weigh those bags individually at checkout to apply the correct price per pound.
Here’s how you could set that up in Square:
1. Create a category called Pick & Mix Candy.
2. Add each candy type as a separate item under that category, with its own cost per pound.
3. Track inventory and costs for each candy type (with customers using separate bags per type).
If separate bags aren’t practical, your alternative would be to estimate an average cost per pound based on your typical mix (e.g., 20% $1/lb, 20% $2/lb, 20% $4/lb, etc.). You can then make a record of that blended amount as the unit cost for your Pick & Mix Candy item. If you're subscribed to the Retail Plus or Premium plan, you'll have the ability to set and update a unit cost for each item to generate Cost of Goods Sold (COGS) reports to help better track your margins.
Otherwise, you can manually track and update the unit cost outside of Square, for example, in a spreadsheet. Then, when you generate your Item Sales reports, subtract the estimated cost from your total sales to calculate an approximate profit margin per bag sold.
Hopefully that gives you a few ideas to try out!
Hi @SweetT1!
Just so I’m on the same page, do your customers fill a single bag with a mix of different candies, and you then charge one price per bag?
If so, the only way I can think of to ensure more accurate pricing and profit margin tracking would be to have customers fill separate bags for each candy type, then weigh those bags individually at checkout to apply the correct price per pound.
Here’s how you could set that up in Square:
1. Create a category called Pick & Mix Candy.
2. Add each candy type as a separate item under that category, with its own cost per pound.
3. Track inventory and costs for each candy type (with customers using separate bags per type).
If separate bags aren’t practical, your alternative would be to estimate an average cost per pound based on your typical mix (e.g., 20% $1/lb, 20% $2/lb, 20% $4/lb, etc.). You can then make a record of that blended amount as the unit cost for your Pick & Mix Candy item. If you're subscribed to the Retail Plus or Premium plan, you'll have the ability to set and update a unit cost for each item to generate Cost of Goods Sold (COGS) reports to help better track your margins.
Otherwise, you can manually track and update the unit cost outside of Square, for example, in a spreadsheet. Then, when you generate your Item Sales reports, subtract the estimated cost from your total sales to calculate an approximate profit margin per bag sold.
Hopefully that gives you a few ideas to try out!
Thanks @Laurie_ . It is the latter -- the customer fills in one bag with a mix of various candies. And makes sense about calculating the blend. I figured i'd just put in each item Unit Cost separately, but it will just take time for Square to blend the cost, given that COGS are FIFO and so it won't be good reporting until the volume passes through a few times.
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