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Baqar Iftikhar Naqvi | Answer |Ask -Follow

Start-up Mentor - Answered on Sep 18, 2023

Baqar Iftikhar Naqvi is the founder and CEO of Upriver Ecommerce, an online sales accelerator firm and can guide entrepreneurs on how to make their firms grow.He holds a BTech in textile technology from the Central Textile Institute and has a master's degree in marketing and merchandising from the National Institute of Fashion Technology.He has 23 years of experience in the consumer products and retail industry.... more

Asked by Anonymous - Sep 18, 2023Hindi

I want to run briyani business from home kitchen . My cost for making for 1 kg chicken briyani comes 600 Rupess , I am staying in Mumbai City, in what profile margin should I said ?

Ans: As i understand your question is - in what profit margin should i sell. I understand that when you say your cost is 600 Rs, you are referring to making biryani out of 1 kg of chicken- right? The final weight of cooked biryani with rice and every other ingredients will be much higher - say 2kg. Typically your food cost should be not more than 30-33% of your sales. So what you make at 600 should sell at about 1800 Rs. So assuming 1 kg chicken makes 2 kg biryani, your per kg sales price should be about 900 Rs. Benchmark this with what similar home chefs are pricing their biryani at. Dont over price else you will ot be able to sell initially.
Also, see why your costs is Rs 600. To me it should be less than that.

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Follow me if you receive this reply.
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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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