Business Opport. Wholesale, How Do You Do It???

Business By ShopGrl1128 Updated 26 Jul 2008 , 6:00pm by indydebi

ShopGrl1128 Posted 25 Jul 2008 , 2:56pm
post #1 of 3

Hello CCers! Happy Friday!

I was approached by a lady this week interested in selling my cakes on her new store and offer them as part of a party package.
She is planning to have store front that sells all kind of cookies, candies, party favors, and also she is putting a âteamâ (DJ, caterers, photographers, etc.) to offer their services as part of her party-planning part of the business.

I personally think is a great opportunity for my business because not only this lady has the best connections in town, but she will steadily be placing orders with me; also she is very involved with different non-profit organizations in town and she is in charge of organizing their fund raisers, balls, activities, etcâ¦great for networking.

I met with her yesterday for a couple of minutes, just she could let me know what ideas she has in mind, and she showed me the store, and all thatâ¦sheâs in a great location by the way.

Any who, the products that she is interested in having in the store are: cupcakes, decorated cookies, cake truffles, mini-cakes and dessert cake (non-decorated 9â round cakes, ea. Carrot cake, peanut butter and chocâ¦etc.), she would also like to have the cookies and truffles packaged in nice boxes to offer them as party favors.

I will meet with her next week with a price list and I have no clue where to begin.
What would be a decent profit margin I should offer? How do you normally price for re-sale?
Do I take my regular prices and lower them down by a percentageâ¦ex.15%-20% and that would be her price???

Please helpâ¦Iâm lost.
TIA,

2 replies
Mike1394 Posted 25 Jul 2008 , 3:10pm
post #2 of 3

It all depends on volume, and frequency. If she orders two dz cupcakes a week, very little or no discount. If she orders 15 dz a week, nice discount LOL. See where I'm going. Since this is going to be for resale how is waste going to be handled? Is she taking the loss for items that she doesn't sell? I hope she is. It's different than doing an event where whatever you bring in is already sold. One more thing to consider. What if this does take off? Can you keep up the volume, and quality?

Mike

indydebi Posted 26 Jul 2008 , 6:00pm
post #3 of 3

Agree ... it depends on volume. 6 or even 8 dz cookies a week is just an order. You wanna talk 1000 or 1500 cookies a week, like I do for ONE client, then I'm open to discount pricing.

You dont' discount "just because". You discount when the volume AND THE CONSISTENCY OF THE ORDER is big enough that it enables YOU to save money by buying in higher volume or being able to schedule the baking in better productivity (labor savings, electricity savings). When you save money, then they can save money.

As Mike mentioned regarding waste ... I wouldn't do any consignment stuff. Not on perishable items. She wants it ... she buys it.

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