How do I figure out how much I should sell my salsa for?

I know how much it costs me to make but how do figure labor and how much to keep for profit? and all that...How do I figure out how much I should sell my salsa for?
Let's say you want to sell your salsa in pint jars....





Calculate the cost per pint that it takes to make your salsa. This includes all of the ingredients, the shipping (or gas for your car) cost it took for the ingreedients to get to your kitchen, the jar/container to put it in, the label and its printing you put on the jar. That's you base materials cost.





Now calculate your labor. How long does it take to make a pint of salsa (#hours to make a batch / number of pints produced)? Multiply that by how much your time (or your employees' time) is worth. That's your labor cost.





Now calculate (estimate) the other costs involved. The electricity/gas to power the stove %26amp; lights in the kitchen, the water, the cleaning supplies used to keep the kitchen %26amp; pans clean, phone bill to take the orders, the rent %26amp; insurance for the building in which the salsa is made, taxes, etc... That's your production cost.





Now, add them all of up! If your costs per pint of salsa total more than what your compeditors are selling their salsa for, you'll need to rethink how you produce salsa (can you make it cheaper). If your costs are less, then determine what price you think you could compete with them. If your total cost is $3 and competitors sell theirs for $6 then you could make a profit of $3 if you sold for the same price. Or you could make a $2 if you sold for $5 - a $1 under your compeditor which might give you a marketing edge.





Best wishes.How do I figure out how much I should sell my salsa for?
compared to similiar products, how much do the others sell for?

ie tab