Cost of Goods Sold (COGS)

Definition
This includes all of the expenses that go into the production of your final product. COGS includes raw material costs (ingredients & packaging) & production costs. When working with a turnkey co-packer, your COGS will be the price per unit that you pay for your product. If working out of a commercial kitchen or at home, remember to include your own labor costs as this will give you the right cushion for when you do move to larger production.