From Retail To Wholesale: What To Charge!

Business By izzybee Updated 11 Nov 2005 , 8:39pm by MrsMissey

izzybee Posted 10 Nov 2005 , 6:45pm
post #1 of 7

I have been running a small dessert business out of my house, only to individuals, so I guess you would call that retail.
A local bakery and I have arranged to have me make items off of my menu for them to mark up and sell, and will tell people, if they ask, that I made the items.
I have worked very hard to price my retail items based on what the market will bear in my area and this bakery is in the same area. They will ordering many items at one time.
I need to know how much to discount off my retail prices to sell wholesale to the bakery. Does 20% sound fair to all?
Please help!!!

6 replies
ntertayneme Posted 10 Nov 2005 , 7:33pm
post #2 of 7

To me 20% seems like a fairly large discount but I guess it would depend on how much cost you have involved and the quantity of items you're making. You'd definitely need to take the cost into factor to make sure you're covering all your expenses too. Best of luck and I hope you get a lot of business!! Keep us posted on how it's going for you!

MrsMissey Posted 10 Nov 2005 , 7:43pm
post #3 of 7

That is the same thing I do but discounts run from 10% to 20%. Sometimes they have a big order and sometimes they just need one I stated up front that the discount only applies on orders of 2 or more cakes!

izzybee Posted 11 Nov 2005 , 12:40am
post #4 of 7

I sold her 2 cakes today for 20% off and she was marking one up $12.00. I'm so bad a this stuff. That's a great idea though to base it on quantity. Thanks for the ideas.

MrsMissey Posted 11 Nov 2005 , 2:33am
post #5 of 7

Sure..generally, a restaurant wants to sell a cake for 3x the price that you sell it to them for! Good luck to you!

izzybee Posted 11 Nov 2005 , 6:11pm
post #6 of 7

OK, so I told her today that for orders under $200 I would give her 15% off and for orders over $200 I would give her 20%. I think I'll also tell her that orders under $100 will be 10% off.
What do you think?

MrsMissey Posted 11 Nov 2005 , 8:39pm
post #7 of 7

I think that sounds very fair!! It's an incentive for her to order more cakes at one time!!

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