Is it really expensive?
I’ve been meaning to write about the price for a long while. But, honestly, it’s not the easiest topic to talk about. To me anyways
I must confess, I find setting a price for S-Foodies products to be the one of the hardest parts of business. And I do get a lot of “it’s expensive”, “it’s too much”, “nobody would pay such a price” etc.
And I understand that raw cakes are more expensive than traditional. But I’m afraid it’s the only way it can go. And not because it’s trendy and one can label something “vegan”, “healthy”, “gluten free” and ask for extra money just for it. No. It is a different product. It is made of very different ingredients and the cost should be different.
But I’m getting ahead of myself. I decided it’s best to be honest with my customer and write this article.
Now let’s talk money. Why it costs the way it does? And where does the cost come from?
A little bit of theory
It feels like nowadays with all these opportunities to order a cheaper product from pretty much anywhere, the whole world has come to a serious price craze. And it’s natural since it’s just so easy. All I need is a phone and access to internet to order an unreasonably cheap product and most likely find even cheaper afterwards. But is it worth it?
Let me break it down a little: a price you pay for a certain product includes the cost of raw material, time, rent, electricity, water, taxes, transaction fees, salary to a whole bunch of people, transportation etc. And the “raw material” should also come from somewhere, so it means salary, resources, rent, taxes, transportation as well. Now if I buy one dollar product… it would probably mean questionable materials and most definitely - bad working conditions. And I started asking myself – do I really want to be a part of this system? Like really?
So yes, something made in Sweden will cost more than made in China. It must. Because we have proper working conditions here, good salaries, and high taxes. And knowing all this, I’m ready to pay more. And of course, products made in small/medium quantities will cost more than mass products. Because since the amount is smaller, the income one needs to make per product is higher.
Raw Cake vs. Traditional. Cost
I will not compare every single ingredients, just the main ones. As an example, I’ll use an average supermarket price. Of course, whole sale prices wouldn’t be as high, but a difference in % between the ingredients would mostly stay the same.
So, here we go:
The main one in S-Foodies cakes is maple syrup, which costs around 160 SEK (16 Euros) for kg. Sugar is 10 SEK (1 Euro). That would be 16 times the price. Now, of course, one can say that there are cheaper sweeteners than maple syrup, but it is the best quality. It contains more nutrients that others and therefore we choose it.
We do use others though. Dates and coconut sugar, which are around 60 SEK/kg (6 euros). Still 6 times the price. Quite sensitive, right?
1 kg of wheat flour would be around 7 SEK. Now, we don’t use any flour really. Instead, we go for nuts and seeds. In which case the most pricy ingredient would be almond (130 SEK/kg), the cheapest would be sunflower seed (27 SEK/kg). So that would be from 4 to 18 times the price.
And here go cashews – 170 SEK/kg. While traditional cream cheese would land somewhere between 70 and 90 SEK/kg. I would be lying if I say that cashews make the only cream base for our cheesecakes. No, there’s coconut cream too – 70 SEK. But to keep it all in shape one also has to take coconut oil – 140 SEK/kg. And here we go with at least double the price.
So you can see, that the cost of a raw cheesecake is at the very (and I mean really vey) best is 4-5 times higher than of a traditional one. And since nobody is asking for 5 times the price, keeping the business above the water is a bit of a challenge. However, I do believe it’s worth it.
Because S-Foodies exist to make a difference offer a higher quality dessert option, to make it easier to choose healthy. To revolutionize the way we think of sweets. To eat better. To live better. To take a better care of our bodies. So call me an utopist, but I’m determined to do it. Because I believe it's worth it