I’m gauging what folks may be paying for frozen dough balls or selling them for in the case of wholesalers. An accountant friend is helping to reorganize a pizza shop/wholesale dough shop. The place hasn’t been managed for a while and hasn’t changed prices in many years. My suspicion is that they haven’t accounted for the recent rise in flour prices. Also, has anyone been involved in the wholesale dough ball manufacture before? I’d like to get an idea of the kind of margin range one should shoot for.
Sizes include 6, 10, 16, 20, 24 OZ.
I can help you with a small portion of your equation. The first thing you will need to know is what it is actually costing you to make a pound of dough. The cost of the ingredients used to make the dough is pretty straight forward, but then comes labor, utilities, packaging, and overhead. The still accepted formula for computing these costs are to multiply the direct ingredient cost by a factor of 2.5. This will give you your dough cost at your shipping dock. Now you can add on your profit margin. From there, you will need to add storage, distribution, handling, and sales costs. When all is said and done, most frozen doughs sell for about $1.00 to $1.25 a pound. Remember, dough that is static frozen will only have a shelf life of 15-days, or so. Dough that is blast frozen (cryogenically or mechanically at -20 to -35F) can have a shelf life of 12-weeks or more if formulated and handled correctly.
Tom Lehmann/The Dough Doctor