Need Suggestions, Wholesale Account

Baking By cupcake Updated 29 Oct 2007 , 6:50pm by DEBBIE157

cupcake Posted 29 Oct 2007 , 5:25am
post #1 of 8

I had made some cookies for my daughters baby shower on Saturday, her two sisters were hostessing the party and came up with a "sip and see" theme . The venue was at a lovely tea and gift shop in a fairly affluent area. So I designed a tea cup with a baby peeking out of the top. I had to make a templet and hand cut these, since I did not have a tea cup cutter. To make a long story short, the owner of the shop asked who had made the cookies, and my daughter told her my mom. The owner approached me with an idea for cookies that she would like to offer her clients when they book parties. I do have a business, and only recently within the last year have gotton into decorated cookies. I have several corporate accounts but they pay the full price. This woman wants to buy wholesale, and then tack on her amount . I will get the credit on the cookies with my label, but I am trying to decide if I want to get into this end of the business. I know I should at least have a minimum order, but she is talking about bagging and tieing herself. She apparently does not have anyone in the area that can do cookies, and seems to think people will buy these as favors for their guests. Most of the cookies I do are 3 and 4 inch and I would ship them to her. Her parties usually are booked a month in advance so I would have time to do these. I would create some samples for her to display for the different types, ie. wedding, baby shower, birthdays etc...If you were to tackle this, what price would you give her, and what particulars would you suggest? I have also purchased the Sweet Art Printer which can do the paperless printing, and looks real nice for Wedding monograms, birthday names etc. What do you'll think? Thanks in advance for your comments. cupcake

7 replies
playingwithsugar Posted 29 Oct 2007 , 9:27am
post #2 of 8

I am curious as to how you will get your label on the cookies if she is bagging and tying herself. Also, I am not sure that I would want someone else doing the bagging and tying, as it does not prevent contamination, including contact with toxic chemicals such as cleaners. At least, if you are packaging the product yourself, you will know what conditions they were packed under, and can assure yourself that your own label is on them.

Then there is the matter of shipping. Is this client going to accept cookies that may be broken during transit, or will she expect credit for them?

I do not want to discourage you from expanding your business, but I do feel that these are issues which need to be addressed before you venture on.

Good Luck --

Theresa icon_smile.gif

Tona Posted 29 Oct 2007 , 10:20am
post #3 of 8

I agree with playing with sugar

cupcake Posted 29 Oct 2007 , 1:54pm
post #4 of 8

PWS, thanks for the input. Since this is a fully licensed restaurant/giftshop, most of her items are from other sources, and those sources have tags with the manufacturer. I wonder if maybe she might try to pass them off as hers, although she did not appear to be that type of person. She has a reputation to uphold in this upscale area, and I don't think she would jeopardize that. If I package the product, then obviously I would have to pass the cost to her. I will do some more thinking on this and research on being a wholesaler. I certainly don't want to create excess work and not make enough profit to justify the venture. I know that with Voortman Cookies, they are sent packaged to the grocery stores, and the bakeries remove them from the packages and put them in bins. This was just an example that I knew of already. I don't think I would have to be concerned about contamination since she knows the food business, but it is valid point. Definitely have to think this one over. Thanks for your input. cupcake

aubrazacmom Posted 29 Oct 2007 , 2:04pm
post #5 of 8

I just recently got into the wholesale side of the cookies just because of the area I live it in works out better this way. So, far it seems easier to me I set my price she buys in bulk and I don't have to worry about the sales tax. Just make sure you set your price so that your making some money. I also do retail but my business is growing because of seeing my cookies at her bakery.

I bag my own cookies (shrinkwrap) though and I would be a little weary of having someone else package them but she seems to be on the up and up so good luck in your decision. icon_smile.gif

playingwithsugar Posted 29 Oct 2007 , 6:21pm
post #6 of 8

I am a naturally suspicious person, so I think that if you are going to enter this venture, you should have a contract stating these terms. You should include a minimum purchase, with a paragraph guaranteeing you price increases as overhead costs rise.

Again, Good Luck!

Theresa icon_smile.gif

anorris3 Posted 29 Oct 2007 , 6:32pm
post #7 of 8

I would suggest chatting with some of the other vendors that she does business with. Do the other vendors allow her to package their products? It seems a bit weird.

DEBBIE157 Posted 29 Oct 2007 , 6:50pm
post #8 of 8
Originally Posted by playingwithsugar

I am a naturally suspicious person, so I think that if you are going to enter this venture, you should have a contract stating these terms. You should include a minimum purchase, with a paragraph guaranteeing you price increases as overhead costs rise.

Theresa icon_smile.gif

I have to agree with this!!

Also, even though it would be 'wholesale', double-check and make sure you are charging enough, so you are not losing money.

Are you doing this mostly for 'advertising' purposes for your business? If so, that would make sense that you don't need a profit. Could potential sales come from this?

Also, think about what YOU are comfortable with. If you feel for health reasons that you should package it yourself, let that be one of the conditions....etc.


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