PRODUCT COSTING MODELS AND PRICING STRATEGIES FOR MICRO-ROASTERIES AND COFFEE SHOPS (SMES) IN LABUAN BAJO

Abstract

This community engagement initiative was designed to enhance the financial literacy of micro-roasteries and coffee shops (UMKM) in Labuan Bajo, focusing on product costing and pricing strategies. The rapid growth of tourism in Labuan Bajo has spurred a competitive coffee shop market, yet many UMKMs struggle with sustainable profitability. The target audience included 25 owners and managers of local coffee shops and micro-roasteries. The implementation methods involved participatory workshops, one-on-one "costing clinics," and the development of simplified costing templates (e.g., calculating Cost of Goods Sold per cup). The results indicate a significant improvement in participants' ability to calculate product costs accurately, differentiate between fixed and variable costs, and implement data-driven pricing strategies rather than relying solely on competitor pricing. This program produced a practical costing module tailored for F&B micro-businesses and underscores the necessity of financial management skills for UMKM sustainability in high-tourism zones.