How to calculate how much eggs are costing?

[aart]

I like what @aart says about bag cycle. Start a new bag of food, save receipt or write down the price, start a tally of how many eggs you get until the bag is gone, then you can get a basic calculation of how much you are spending on a dozen eggs. You can even add a new bag of oyster grit and/or bedding at the same time if that's something you purchase. Depending how much food your flock goes through a week this method may or may not take you some time. For me a 50lb bag lasts about a month, which would give me a more accurate calculation than a week because it would factor in the girl occasionally not laying.

I only do feed in the 'bag cycle', scratch grains are estimated but pretty accurate.
The other things don't fit the bag cycle(way longer cycles here) and so are calculated annually instead. The longer you keep records the more accurate your analysis will be.

If one is doing this to figure how much one should charge when selling eggs, don't.
Start your egg prices as high as you can for your area,
easier to reduce price later if necessary,
than increase it because you're losing money.

 

[Circle W Farms]

Thanks for everyone's replies they were very helpful. I am wanting to figure the price per dozen because I'm wanting to branch out and start selling to local restaurants. We have a decent operation selling off the farm and farmer's markets already. I'm just wanting to grow the business but while making some instead of losing. That's why I was wanting to know how to calculate it. Thanks again.

 

[PirateGirl]

Thanks for everyone's replies they were very helpful. I am wanting to figure the price per dozen because I'm wanting to branch out and start selling to local restaurants. We have a decent operation selling off the farm and farmer's markets already. I'm just wanting to grow the business but while making some instead of losing. That's why I was wanting to know how to calculate it. Thanks again.

You may already be aware of your local regulations, but double check if you are not. I know in my state the egg sale laws are different if selling to the end user (like at a farmers' market) vs. a restaurant, where the eggs will be consumed by someone other than the purchaser. Good luck! This sounds like a great way to grow your business! I wish I had enough eggs to expand like that.

 

[Kiki]

You may already be aware of your local regulations, but double check if you are not. I know in my state the egg sale laws are different if selling to the end user (like at a farmers' market) vs. a restaurant, where the eggs will be consumed by someone other than the purchaser. Good luck! This sounds like a great way to grow your business! I wish I had enough eggs to expand like that.

Laws/rules for doing the same are different in Texas too.

 

[Lady of McCamley]

Thanks for everyone's replies they were very helpful. I am wanting to figure the price per dozen because I'm wanting to branch out and start selling to local restaurants. We have a decent operation selling off the farm and farmer's markets already. I'm just wanting to grow the business but while making some instead of losing. That's why I was wanting to know how to calculate it. Thanks again.

You have gotten excellent advice for calculating egg cost from others, but I thought I'd add in my thoughts too.

I sold for awhile and used Quicken Home and Business (and now Gnucash).

I tallied eggs by dozen per month, created tracking categories for chicken supplies (subcategorized if needed...feed vs. shavings vs. meds) and then created a category for egg sales. Monthly costs vs egg tally compute actual cost. Sales vs. expenses computed income.

For a business I found it better to track more tightly as the goal is more than breaking even but actually creating profit. I could then track what expense was creeping upward. There is a sort of Laffer curve of minimum chickens to maximum eggs and profits.

And I agree, definitely check your local ordinances. I too live in an area where farm to consumer direct is pretty easy, however, selling to restaurants may require inspection and egg handler licensing.

Lofmc

 

[bruceha2000]

$2.53/dozen

To date, starting in 2012 I've tracked all costs other than converting a stall to a coop. That includes all feed, purchased treats (BOSS and scratch), shavings, chicks, feeders, waterers, etc. All eggs laid (obviously). Includes NO labor, electricity or water costs.

I wouldn't bother trying to figure it out per bag or month, etc unless you plan to charge more when they aren't laying as productively (winter) and less when they are cranking them out. If you plan to make money at this, you'll need to know who is laying and who is not, cull the non productive birds. Otherwise you (like me) are spending money on freeloaders and that is no way to run a business (which I am not).

Only buy high laying breeds. Of course that isn't a guarantee, each bird is an individual. But a breed that is expected to lay 3 a week isn't going to make you any money, aim for the 5 or more/week breeds.

And yeah, that regulation thing. I would guess at the LEAST you'll need commercial grade egg washing to sell to a restaurant. And you'll need to refrigerate them because you have washed off the natural protection. How many dozen will you be generating, how many will need to be in the refrigerator at any point in time. How much will that refrigerator cost to buy ... and run - you can get a kill-a-watt meter ($17 on Amazon) to see how much power the refrigerator is using so you can factor that cost in as well.

Realize that the restaurant can buy eggs in bulk really cheap from wholesalers buying from egg factories. Unless you are selling to a "natural food", "humane food", "local food" restaurant you can't come close to the battery hen egg price.

 

[PirateGirl]

I agree with others... knowing that you are tracking for business, I'd track all expenses. Not just feed. Feed can give you a quick/rough calculation to help you set your price per dozen, but record every purchase, save every receipt. The better your records, the better off you are at tax time and the better off you are for setting next year's projects.

 

[Lady of McCamley]

...and if for a serious business to restaurants, versus seasonal farmers markets, you will likely need to consider flock rotation and lighting to keep year round eggs.

Otherwise you will lose out to others who can supply in winter months which may make it hard to get back into that market again.

Customers like consistency or they go elsewhere.

LofMc

 

[chickengeorgeto]

... Realize that the restaurant can buy eggs in bulk really cheap from wholesalers buying from egg factories. Unless you are selling to a "natural food", "humane food", "local food" restaurant you can't come close to the battery hen egg price.

This Summer the regular price per dozen of grade A large hen eggs was 28¢ & 25¢ per dozen at a national chain store. It was enough to make me want to take my hens there and give them a little motivational talk about how they must do better if they want to make their coop great again.

 

[bruceha2000]

$0.28/dozen??? The battery hen farms can't produce eggs at anything close to that price and they are as cheap as you can get. That is a serious loss leader at the store. They must have really jacked the profit price on other things people will buy while they are in the store for the (effectively) free eggs. The customers just don't realize it.