I am taking my first steps to get my business going & am unsure about wholesale pricing. I made a mexican chocolate torte & would like to approach a local mexican restaurant selling them wholesale cakes.
Here's my ???
The cake is 9" round &cost me $3.50 to make, took about 5 min to make the batter & 35 min to bake. What do you think would be a fair wholesale cost so that I am making it worth my while & theirs??
Thank you in advance.....
So I did some figuring out. What do you think about $15 / torte ? I figure that the restaurant can probably get 8 servings @ $5/ serving, allowing for them to make $35 / torte.
I don't know much about wholesale, but 8x5=40, so the restaurant would stand to make $25 profit. Why allow the restaurant to make the bigger profit?? I would sell it at $20 at least.
In my opinion, the restaurant should be making the larger "profit", because they carry the risk of staling. The cake may serve 8, but what if only 5 pieces sell before it stales? If they are losing money, they may stop ordering. They also have the expense of the labor to serve the cake, the dishes to wash, etc. So that $25 profit may actually only be $15 or $10.
tee hee.... I'm usually good @ math. Must be the 3 kids under 6 running around with pre- easter jitters!
$20 does seem more lucrative for me, I was thinking that with them needing to plate it etc.. the extra $5 might lure them in a little easier.
Got to go tweak the recipe a little - it was a little too spicy.
edited to say:
I agree with them making more profit. It is actually not a full on mexican restaurant but a bistro that does very popular mexican inspired menu on Monday nights.