Most food producers drastically underestimate their true marketing costs, then wonder why they're barely breaking even. Branding and marketing expenses aren't optional extras - they're core business costs that must be built into your wholesale pricing. Skip this step, and you'll find yourself subsidizing every sale from your own pocket.
What counts as branding and marketing costs?
Branding and marketing encompass every expense you incur to build awareness and drive sales. Here's what you need to track:
- Logo and packaging design: Graphic design, photography, labels
- Website and webshop: Development, maintenance, hosting
- Marketing materials: Flyers, brochures, business cards
- Online marketing: Google Ads, Facebook ads, SEO
- Trade shows and events: Booth costs, travel costs, promotional materials
- Samples and trial packages: Free products for prospects
⚠️ Note:
Don't just count direct costs, but also include your own time. If you spend 20 hours a week on marketing, that's also a cost item.
Calculate your total annual marketing costs
Create a comprehensive overview of all marketing-related expenses per year. Add up everything you spend to promote your products.
💡 Example annual marketing costs:
A small sauce producer has these costs per year:
- Website and webshop maintenance: €1,200
- Packaging design updates: €800
- Online advertising: €2,400
- Trade shows and tastings: €1,800
- Samples and trial packages: €600
Total: €6,800 per year
Divide marketing costs across your production
You'll divide your total marketing costs by the number of units you produce and sell annually. This calculation gives you the marketing cost burden per product.
Formula: Marketing costs per unit = Total annual marketing costs / Number of units sold per year
💡 Example calculation:
The sauce producer sells 8,500 bottles per year:
- Total marketing costs: €6,800
- Number of bottles: 8,500
- Per bottle: €6,800 / 8,500 = €0.80
Each bottle needs to cover €0.80 in marketing costs
Add marketing costs to your cost price
Your total cost price consists of multiple components that you need to recoup through sales. Marketing costs represent one critical piece of this puzzle.
Total cost price = Production costs + Packaging costs + Marketing costs + Overhead costs
- Production costs: Ingredients, labor, energy
- Packaging costs: Bottle, label, box, shipping
- Marketing costs: As calculated above
- Overhead costs: Rent, insurance, administration
💡 Example total cost price:
Per bottle of 250ml sauce:
- Production costs: €1.20
- Packaging costs: €0.45
- Marketing costs: €0.80
- Overhead costs: €0.35
Total cost price: €2.80 per bottle
Calculate your wholesale price with profit margin
Your wholesale price must cover all costs and generate profit. From tracking this across dozens of restaurants and food producers, a typical profit margin ranges between 25% and 40%.
Wholesale price = Total cost price / (1 - Desired profit margin %)
💡 Example wholesale price:
With a desired profit margin of 30%:
- Total cost price: €2.80
- Desired margin: 30%
- Calculation: €2.80 / (1 - 0.30) = €2.80 / 0.70 = €4.00
Wholesale price: €4.00 per bottle
Update your marketing costs regularly
Marketing costs fluctuate constantly. They shift with seasons, new product launches, and business growth. Review your calculations at least quarterly to maintain accuracy.
- With growth: Marketing costs per unit often decrease (economies of scale)
- With new products: Higher marketing costs at the beginning
- With seasonal peaks: More marketing in busy periods
⚠️ Note:
If your marketing budget increases but your sales don't, each product becomes more expensive. Monitor the relationship between marketing spending and revenue growth.
How do you calculate marketing costs in your wholesale price? (step by step)
Inventory all your annual marketing costs
Make a list of all expenses for marketing, branding, website, advertising, trade shows and samples. Also include your own time that you spend on marketing.
Divide by your annual production
Divide your total annual marketing costs by the number of units you sell per year. This gives you the marketing costs per product.
Add to your other costs
Add the marketing costs per unit to your production, packaging and overhead costs for your total cost price per product.
Calculate wholesale price with profit margin
Divide your total cost price by (1 minus your desired profit margin). At 30% margin: cost price / 0.70 = wholesale price.
✨ Pro tip
Allocate 6-12% of projected annual revenue to marketing costs upfront, then track actual spend monthly. This prevents underpricing and ensures you're building realistic marketing budgets into every wholesale price from day one.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I also include my own time in marketing costs?
Absolutely, especially if marketing consumes significant hours weekly. Value your time at €25-35 per hour minimum. Otherwise you're drastically underestimating your true marketing investment.
What if my marketing costs are higher than my production costs?
This situation's common for new products or premium brands. Just ensure you maintain adequate profit margins and track whether your marketing spend actually drives sales growth.
Can I calculate different marketing costs per product?
Yes, if certain products demand more promotional investment than others. Track marketing spend by product line and calculate those costs specifically into each item's pricing structure.
What about one-time costs like logo design?
Spread one-time investments over 3-5 years for pricing purposes. A €3,000 logo becomes €600-1,000 annually in your marketing cost calculations.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
Selling food? Then you need KitchenNmbrs
Whether you run a restaurant, food truck, catering company, or meal kit business — you need to know what each dish costs. KitchenNmbrs gives you that insight. Start your free trial.
Start free trial →