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How to Pay Yourself $1,000 a Month from Your Sourdough Microbakery | Episode 98



If you've ever wondered how to turn your sourdough baking into a business that actually pays you—this is the episode you need.


In this first part of a two-part series, I walk you through the exact steps to start paying yourself $1,000 a month from your sourdough microbakery. We break down ingredient costs, profit margins, pricing strategy, and how to build a business that contributes meaningfully to your household income—without burning out.


This isn’t about guessing or pricing based on what other bakers are doing. It’s about clarity, ownership, and understanding your numbers. Whether you're brand new or you've been at it for years, this episode will give you the practical tools and mindset shifts to take your bakery from hobby to paycheck.


Why I Created This Episode

This topic has been on my list for a long time. I waited because I wanted to make sure I could explain it clearly and simply—because numbers can be intimidating.

“When I first heard someone talk about her $1,000 weeks, it was a lightbulb moment. It showed me that this could be more than just a hobby—it could be a real business.”

I also know that many bakers struggle to price their products confidently, and even more feel unsure about how to make their bakery financially sustainable. This episode is here to change that.


The First Step: Understanding Your Costs

Before you can price anything, you need to know what it actually costs you to make your products.


“You’ve got to get comfortable with your numbers. That’s the difference between being in survival mode and building a long-term business.”

Action Steps to Calculate Ingredient Costs:

  1. List each ingredient you use in your recipes.

  2. Record:

    • The total cost of the ingredient package.

    • The weight/volume in grams (convert if needed).

  3. Calculate cost per gram:Example: $10 ÷ 4,540g = $0.0022 per gram.

  4. Multiply cost per gram by the number of grams used in your recipe.

  5. Repeat this for every ingredient: flour, salt, starter, eggs, chocolate chips, butter, etc.

  6. Don’t forget to include packaging costs.


“This is the math behind your margins. And it’s easier than you think—it’s just repetition.”

Helpful Tip:

If spreadsheets overwhelm you, start with a notebook. But if you like automation, I created a Profit & Pricing Calculator in Google Sheets to simplify the whole process. (Linked below in the resources section)


Know Your Profit Margins

Once you know your cost per product, you can calculate your profit margin—and finally start paying yourself.


“A $10 loaf that costs you $3 to make has a 70% profit margin. That leftover $7 covers your pay, taxes, overhead, and savings.”

How to Calculate Profit Margin:

  • Selling Price – Cost = Margin

  • Margin ÷ (Selling Price × 100) = Profit Margin %


Examples:

  • $10 loaf, $3 cost → $7 margin → 70% profit

  • $12 product, $2 cost → $10 margin → 83% profit


Why It Matters:

This tells you how much is left to:

  • Pay yourself

  • Cover overhead (electricity, software, insurance)

  • Set aside for taxes

  • Reinvest in your business

“My focaccia has an 89% profit margin. It’s quick to make, easy to scale, and sells fast. That’s a product I lean into.”

Adjusting Products That Aren’t Profitable

Not all products are priced well out of the gate. That’s okay—it’s fixable.


“I ran the numbers on my brownies and realized they were only at 59% margin. That wasn’t enough. So I changed the size, raised the price, and they still sold out.”

Actionable Adjustments:

  • Raise the price

  • Reduce portion size

  • Change packaging

  • Temporarily remove the product from your menu

  • Bring it back when it’s more profitable


And yes—it’s okay to raise your prices.


“People expect higher prices right now. If your costs have gone up, your prices should too. Don’t be afraid to charge what your product is worth.”

Handling Pushback on Pricing

You might hear a comment or two when you adjust your prices—but don’t let that derail you.


“If one or two people push back, that’s not a reason to panic. It just means they might not be your ideal customer.”

Reframe the feedback:

  • You’re not here to bake for everyone.

  • There is a customer for every price point.

  • You’re building a sustainable, not cheap, bakery.

“There’s a market for J.Crew and a market for Gucci. You’re not meant to serve everyone.”

The Power of High-Margin Products

Some products will carry more of your income than others—and that’s a good thing.


“I balance out my lower-margin cookies with high-margin focaccia. That’s what keeps things sustainable.”

Look for:

  • Products that are quick to make

  • Sell easily and consistently

  • Use minimal inclusions

  • Are priced for high value and low cost

These become the cornerstones of a profitable product line.


Final Thoughts

If you’re still thinking, “I’m not a numbers person,” I see you. I’ve been there too.

“I used to say math wasn’t my thing. But I learned—if I want this to be a real business, I have to get comfortable with my numbers.”

This episode is part one of a two-part series. We laid the foundation here: understanding costs, calculating margins, and adjusting your pricing. In the next episode, we’ll walk through how to reverse-engineer your pay and allocate your margins to hit that $1,000/month income goal.


You’re doing hard and important work. And this step—learning your numbers—is one of the most empowering things you can do for yourself and your business.

Links to things you might like!





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