Pricing & Costs · 7 min
How to Update Your Prices When Ingredient Costs Rise
Update the affected recipe facts first, then decide whether the selling price must change.
Update the source record
Record the new package price, size, supplier, and date without deleting the old fact. Price history helps explain when and why a recipe changed.
Worked example
Educational example: a butter pack rises from $4 to $5 and a batch uses half the pack. Butter cost in that recipe rises from $2.00 to $2.50, adding $0.50 to batch cost.
Recalculate affected products
Update recipes using the ingredient, then check current selling margin. Decide whether to adjust price, portion, process, or supplier using the full cost rather than one alarming receipt.
Avoid blanket percentages
A 10% increase in one ingredient rarely means every product cost rose 10%. Follow the ingredient through each recipe and its actual used quantity.
Use your own verified receipts and label every example as an estimate.
Open the related tool