Why is there no single right price?
Prices change from one street to the next. Rent, vegetable prices, what people earn and what they are used to paying are all different. A price that works in one area can be too high or too low in another.
So instead of copying a number, use a method. The method below works anywhere, because it starts from your own costs. All the amounts in this post are example numbers, only to show how the sums work.
Step 1: What does one box really cost you?
Cook one normal day's food and write down everything that went into it. Then divide by the number of boxes.
- Ingredients: grains, flour, dal, vegetables, oil, spices, salad.
- Packing: container wear, foil, bags, napkins.
- Gas and power: the extra on your monthly bill, divided by boxes.
- Delivery: fuel or a driver's pay, divided by boxes.
| Item | Example numbers per box |
|---|---|
| Ingredients | ₹48 |
| Packing | ₹5 |
| Gas and power | ₹6 |
| Delivery | ₹9 |
| Cost of one box | ₹68 |
Step 2: How do you add your own pay and a margin?
Your time is part of the cost. Decide what one hour of your work is worth. Add up the hours you spend each day on shopping, cooking, packing, delivery and messages. Divide that pay by the boxes you make in a day.
Example numbers: 4 hours a day, ₹100 an hour, 12 boxes a day. Your pay per box is ₹400 ÷ 12 ≈ ₹33. Now the box costs ₹68 + ₹33 = ₹101.
Then add a small margin, often 10 to 20 percent, for days when food is left over, a customer does not pay on time, or prices go up. With 15 percent, ₹101 becomes about ₹116. That is your lowest fair price for one box.
Step 3: How do you check the price against your area?
Ask around. Look at what other home kitchens and small canteens near you charge for a similar meal and portion. Compare like with like: number of rotis, size of the dal bowl, whether a sweet or salad is included.
- If local prices are higher than your number, you can price at the local level and keep the extra as profit.
- If local prices are close to your number, you are in a good place.
- If local prices are much lower, do not simply match them. Check your portion, your costs and your delivery area first. Lower prices sometimes mean smaller boxes.
Step 4: Should you charge per box or per month?
Most tiffin services offer both. A per-box price suits people who eat now and then. A monthly price suits regulars and gives you steady money and an easier count each morning.
Set the monthly price a little below what the same boxes would cost one by one. Example numbers: ₹120 per box × 26 days = ₹3,120. A monthly price of ₹2,900 gives the customer a small saving and gives you a regular customer.
Decide clearly what happens on skipped days before you start. Read tiffin subscription plans: monthly, weekly or per meal for the choices.
Which pricing mistakes should you avoid?
- Pricing from memory. Write down a real day's costs; guesses are almost always too low.
- Forgetting packing and delivery. Foil, bags and fuel add up over a month.
- Leaving out your own time. If your work is free, the business is not really paying you.
- Different prices for different people. It feels kind, but it causes confusion and bad feelings later.
- Free extras every day. A sweet or extra roti now and then is nice; every day, it is part of the cost.
- Not counting unpaid boxes. A box that is never paid for is a loss, so keep dues small with clear payment dates.
If you notice one of these after you have started, fix it at the start of the next month and tell customers in the menu message. Most people accept a clear, honest change.
Step 5: How do you tell customers about a price?
Write the price in every menu message, so nobody is surprised. When you raise a price, give notice and keep the message short and kind.
Check your price again every few months. HomeTiffin shows what you collected and what you spent each month, so you can see if the price still works. See payments and dues and the guide how to price your tiffin.