Remember the book “The $64 tomato”? Well, I did some calculating to figure out how much a jar of honey was costing me to produce. The bottom line – it’s an expensive bottle of honey.
I figure a pound of honey costs me $27.63 to produce. A little better than that expensive tomato, but still a pretty costly jar of honey.
Now, I’m a second year bee keeper, so I had a lot of set up costs and they won’t be recurring. My set up cost $918. Recurring costs are $640. I added in my time at $30 hr. I’ve spent about 80 hours producing my honey valuing my time at $2310.
Another way of figuring my cost since it’s a hobby is to omit my time, which of course is all fun, not work. Also, I can omit set up costs. Now it’s much better: a pound of honey is $4.57.
I’m impressed that local bee keepers can sell their honey at $9 to $11 a pound. I sure they are much more efficient than me.
I’m selling my honey for $10 a one pound jar, and for $7 a half pound jar. I’ve sold nearly 100 lbs, so I’ve made over $1000. After 2 years, I’ve covered my set up costs. Going forward, I really should charge based on my recurring expenses and my time. That’s $21.07 a pound – I don’t think I’d sell anything at $20/lb. I need to forget my hours or get more efficient. I could probably go to $12 a pound. It’s very special honey after all! It does taste very good.