KENYA · GUIDE 0012 · EDITION 4.2
Garden pea growing - Pricing, break-even and cash flow
Price an accepted unit, not an activity title
Start with this sale unit: kilogram of agreed format.
Choose whether the pea offer saves kitchens shelling work or supplies attractive pods for retail display, then keep these two products distinct during trial sales.
A quotation needs the accepted quantity or scope, exclusions, completion point, delivery arrangement and payment schedule. Without that specification, two apparently similar prices may pay for different work.
Build the direct-cost sheet
- seed
- harvesting
- shelling loss
Calculate the shelled product from weighed pods after shell removal and include shelling labour, packaging and additional handling instead of merely comparing advertised selling prices.
| Calculation | How to use it |
|---|---|
| Variable cost per accepted unit | Direct inputs, labour, delivery and measured losses divided by accepted units. |
| Contribution per unit | Agreed selling price minus variable cost per unit. |
| Period operating surplus | Contribution from units sold minus fixed overhead for the same period. |
| Break-even units | Fixed overhead divided by positive contribution, rounded up. |
Count rejected output, unsold stock and correction time. Keep fixed overhead in a consistent period; a daily contribution cannot be compared directly with a monthly overhead figure. If contribution is zero or negative, extra sales do not establish a workable break-even point.
Reconcile the cash separately
A customer's unpaid balance cannot pay today's supplier bill. List actual collections, advance payments, supplier deadlines, refunds and recurring bills by date. Separate refundable deposits and money held for an uncompleted commitment from funds freely available for expansion.
A higher shelled-pea price can be misleading when shells, damaged peas and preparation time consume most of the apparent premium available over whole-pod sales.
Test a weaker outcome
Recalculate with fewer accepted units, a delayed customer collection or a higher input quotation. Change one assumption at a time to see which constraint matters. Use the actual pilot record: Record pod weight, usable shelled weight, shelling time and buyer preference after preparation, then note which format generated a paid reorder from the trial customer.
Do not interpret the invented financial teaching exercise in the complete manuscript as a market price or predicted income. Replace its assumptions before using it for a real decision. The public planning tool can help with arithmetic; it does not validate the inputs.