Step 1: Estimate the time spent per batch
Sieving the liquid: ~10 minutes
Filtering through cheesecloth: ~10 minutes
Pressing to extract liquid: ~10 minutes
Bottling tinctures: ~15 minutes
Total time spent: 45 minutes (0.75 hours)
Step 2: Labor cost per batch
Your labor rate is $60/hour.
Labor cost for 0.75 hours = $60 × 0.75 = $45 per batch.
Step 3: Labor cost per tincture
Each batch produces 10 tinctures.
Labor cost per tincture = $45 ÷ 10 = $4.50 per tincture.
Step 4: Update the total production cost
Vodka cost per tincture: $2.50
Bottle cost per tincture: $1.58
Labor cost per tincture: $4.50
Total production cost per tincture:
$2.50 + $1.58 + $4.50 = $8.58 per tincture
Step 5: Pricing with profit margin
Profit margin: Multiply the production cost by 2x to 3x.
Suggested retail price per tincture:
$8.58 × 2 = $17.16
$8.58 × 3 = $25.74
Final Recommendation:
Price range: $17–$26 per tincture
Ideal price: Around $20 for a competitive yet profitable rate
