I'm going to have to agree with Del and Jim. I just created a spreadsheet that factors in everything including labor, overhead, mold cost depreciated over time, raw materials, labels, ink for labels, scent, flake, advertising and whatnot.
I also calculated out how many baits per hour I can produce along with cooling time and pouring time. Also I can tell how many baits I can get out of each container of materials. It's taken me over a month of tweaking on the spreadsheet.
A bag of 5.25" sticks (Qty 8 per bag) costs me $3.31 to make and I pour with a presto pot and that is just cost alone not including markup. Granted I currently buy in small quantities and not in bulk.
I was selling them for $4.00 per bag. Not anymore. I upped my qty and my price.
I am "charging" myself $5 per hour overhead on top of my labor rate for utilities, rent, cost of pouring pot, cabinets, microwave, cups and what have you. I know that number is low too!
I now truly understand how much I and we are leaving on the table by pricing things very low. You can justify it to yourself all day long that it is a hobby but if you really want to make some money you have to incorporate all those costs.
It is scary to me to see people selling a bag of baits for $3 because I look at what it cost me if I where to buy at larger quantities and I would still lose money.
Okay... I will get off my soapbox now.