top of page

Creator to Consumer – COG and COGS

Creator to Consumer – COG and COGS

Season 2 Episode 3 –

30 years and still learning - Having spent most of my career post leaving the Royal Navy working in consumer goods, primarily in the perishable food sector. I find it fascinating that I still learn every day, sometimes it’s a reminder of what I have forgot but for the most part, I learn something new every day… Today’s episode is about COG and GOGS

What is COG and COGS?

COG = Cost of Goods

COGS = Cost of Goods Sold

What is the difference?

COG is the cost of the product as it comes of the production line, ingredients, packaging, production costs, maturation costs, freezing costs, moving the product to your warehouse ready to be sold.

COGS is COG plus the cost of selling the product, including resource needed in sales and administration, the amortized development costs, the transportation if you must deliver your product to your customer, the warehousing, storage and handling cost, etc. excluding any customer or consumer marketing expenditure.

How do I know what to factor into my COGS?

Financial principles of your business will dictate what is included in the COGS, every company and financial team approach this slightly differently, the key thing to understand is the COGS includes as many costs from development to delivery to your customer as you want to apply to each product, so know your true cost.

Why do I need to know this?

You need to understand your cost of production and your finished product cost’s, defining them in these simple terms makes you aware of what needs to be factored into making a profit. As mentioned in our previous episode about margins, if you cost out ways your selling price you are doing it wrong.

Now it’s all clear as mud, need more, please ask.

In our next episode, we will be talking about Market Channels, what are they? thanks for reading and continuing your journey from Creator to Consumer.

Interested in reading or finding out more about selling your passion or our Creator to Consumer series please visit our Chatter page at and click on Creator to Consumer 1 & 2 or our general site at, for more direct interaction please e mail us at

Remember, whatever you know “good luck keeping up”

3 views0 comments


bottom of page