Here is something you can look up

[cristycurves]

If you choose to, that is.......I've always been curious to what the production cost was of a large can of quality street chocolates. This is the time of year you see them on grocery shelves and the price can very from 22$-11$. I googled many things but can't seem to get an answer. Do you know?

 

[papasmerf]

If you choose to, that is.......I've always been curious to what the production cost was of a large can of quality street chocolates. This is the time of year you see them on grocery shelves and the price can very from 22$-11$. I googled many things but can't seem to get an answer. Do you know?

Called market pricing.

Well that and COCA is @ 2100 bucks per metric ton.

 

[Madman]

BrownMan, you are about to get slapped by our finest and when you do, DON'T SAY I DIDN'T WARN YOU!

 

[Wino]

If you choose to, that is.......I've always been curious to what the production cost was of a large can of quality street chocolates. This is the time of year you see them on grocery shelves and the price can very from 22$-11$. I googled many things but can't seem to get an answer. Do you know?

I couldn't find anything related to your question either.

 

[nntsci]

If you choose to, that is.......I've always been curious to what the production cost was of a large can of quality street chocolates. This is the time of year you see them on grocery shelves and the price can very from 22$-11$. I googled many things but can't seem to get an answer. Do you know?

Production cost typically vary depending on how much they are able to produce and sell and what you mean by "production costs". The fixed capital costs such as facilities and machines tend to make up most of the initial investment cost of production. Then during production there is the cost of labour. There is also research and quality control testing that is done to develop new products and maintain standards with old ones. For fixed costs, research, and labour, with greater volume of production and sales the production costs are lower per unit.
The actual contents (cocoa, wafers, caramel, sugar, vanilla and other flavours, wrappers, boxes) are relatively small compared to labour. Then there is distribution, and marketing costs as well as the mark up by each retailer to cover their costs and profit. All of which contributes to the final retail price. If you find a publically traded chocolate company, get their annual report and they should out line each of the costs (e.g., fixed capital, labour, supplies etc.).

Oh, if you wonder how I know this, most its from watching too many episodes of "Hows it made" and similar educational shows on TV, and a tour of a chocolate factory in Niagara on the Lake -- my youngest son was fascinated by factory production.

 

[God]

Production cost typically vary depending on how much they are able to produce and sell and what you mean by "production costs". The fixed capital costs such as facilities and machines tend to make up most of the initial investment cost of production. Then during production there is the cost of labour. There is also research and quality control testing that is done to develop new products and maintain standards with old ones. For fixed costs, research, and labour, with greater volume of production and sales the production costs are lower per unit.
The actual contents (cocoa, wafers, caramel, sugar, vanilla and other flavours, wrappers, boxes) are relatively small compared to labour. Then there is distribution, and marketing costs as well as the mark up by each retailer to cover their costs and profit. All of which contributes to the final retail price. If you find a publically traded chocolate company, get their annual report and they should out line each of the costs (e.g., fixed capital, labour, supplies etc.).

Oh, if you wonder how I know this, most its from watching too many episodes of "Hows it made" and similar educational shows on TV, and a tour of a chocolate factory in Niagara on the Lake -- my youngest son was fascinated by factory production.

:YMAPPLAUSE:

 

[cristycurves]

Thanks for the replies-hot mess man is blocked so his reply is ignored. @nntsci-thanks for that, but my question wasn't so much about why they cost what they do, but I'm more curious to know how much the mark up is......

 

[DannyDevito]

Thanks for the replies-hot mess man is blocked so his reply is ignored. @nntsci-thanks for that, but my question wasn't so much about why they cost what they do, but I'm more curious to know how much the mark up is......

Most business work on a 200% markup.

 

[nntsci]

Most business work on a 200% markup.

Never sure what percentages mean, but I assume you mean they double the price. Yes that's my understanding.

But depends on how many levels of marketing there are between the manufacturer and the final retailer

Say the actual production itself would be say $2.5, the factory has to sell it say at $5 to make a profit.

If I buy a product at $5 per unit, I'm going to need to sell it for $10 other wise I can't pay my staff or make a profit.

But if there is a wholesaler between production and retail, a product made for $2.5 might be sold for $20.

But it also depends on the how competitive the market place is.

so the total "markup" above production costs depend on a lot of factors.