Bakery details ingredients & operating costs to justify product prices
A recent post by a netizen in Nanjing, China, has sparked online discussions after the user bought a cake from a local bakery that clearly displayed a breakdown of its ingredients and operating costs on the packaging.
These included rent, utilities, platform commissions, and more.
Source: Weibo
“I’ve never seen a business display costs this clearly before,” the netizen wrote.
This transparency led to widespread debate about whether it is appropriate for a business to list such detailed costs on its products.
Cake packaging includes full cost breakdown
The post showed that the packaging of the cake listed the ingredients, quantities, and their associated costs, such as:
- Anchor cream cheese 220g — 9.46 yuan (S$1.80)
- Anchor whipped cream 115g — 4.6 yuan (S$0.90)
- Eggs 100g — 2 yuan (S$0.40)
In addition, costs for packaging, labour, utilities, and platform commissions were included, bringing the total cost to 30.59 yuan (S$5.70).
Source: Weibo
The netizen explained that they bought a quarter of a Basque cake for 9.9 yuan (S$1.90), with the full cake priced at 38.99 yuan (S$7.30), leaving a profit of about 8.4 yuan (S$1.60) on the full cake.
“It’s soft and dense, with a rich cheese flavor, very delicious, and the price tag is clearly displayed, so I feel the cost is truly transparent,” the post read.
Netizens praise bakery for transparency
The post generated significant attention.
Some praised the bakery for its honesty and transparency, with comments such as: “I appreciate this, the boss isn’t deceiving customers, it’s real quality.”
However, others raised doubts about the bakery’s motivations, accusing the shop of showing off or inflating the prices.
One commenter questioned: “One egg costs 1 yuan? Is that really so expensive? The packaging box costs 1.93 yuan (S$0.40), but online it’s only a few cents.”
Others also wondered if the costs for rent and utilities were exaggerated.
Bakery assures customers of quality ingredients
On Saturday (23 Nov), a reporter contacted a staff member at the bakery in question.
The staff member explained that the bakery lists ingredients and associated costs to reassure customers that the cakes are made with high-quality ingredients, justifying the price.
The bakery is currently performing well, with more than 100 cakes sold daily.
Several local netizens in Nanjing confirmed to the media that the cakes are not only delicious but also offer good value for money.
In response to online reactions regarding the inclusion of rent and labour costs, the staff member emphasised that these are essential expenses when making cakes.
“Now that the ingredients and costs are transparent, customers can feel at ease when they make a purchase,” they added.
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Featured image adapted from Weibo.
