You asked, Sarah is answering! We love these listener Q&A episodes, and today's cost of goods sold questions are absolute gold.

First up: When Google gives you two different definitions for the same term, which one should you trust? Sarah breaks it down and explains gross profit margin vs. net profit margin and which should be your starting point for healthy food business cash flow.

Then, we hear from a food founder who thinks they're "double charging" themselves for labor. Spoiler alert – they're not, but Sarah's explanation about theoretical COGS versus actual P&L numbers will probably change how you think about your own spreadsheets.

The episode wraps with insights from a recent live Q&A where tiered pricing sparked a fascinating conversation among members. One founder wants to simplify their pricing structure due to rising & fluctuating costs, while another realized tiered pricing may be a benefit. Hear Sarah’s recommendation on how they should determine their best pricing strategies. 

Keep those questions coming – we read every single email! You can reach us at [email protected]

 

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