I Need Some Good Advice

Decorating By buttercreammgt Updated 17 Oct 2008 , 11:17pm by Mike1394

buttercreammgt Posted 13 Oct 2008 , 3:18pm
post #1 of 16

O.K I started working for someone who has been doing cakes for years. I was given 8 wedding cake orders from them and I was to give the company a percentage of the cake total. I made the cake, decorated and delivered. I get to leave my card on site. Bassically I'm miffed now because if I find a client myself and book a cake I have to give the company over 40 percent. I found the client, baked decorated. I'm upset because I get to keep so little of the profit. I do however get guaranteed 20 wedding cakes a year. So am I in a good place or getting taken advantage of? Also I bake the cake in my own home with pans I purchased. and I don't have to run my own business or advertise.

15 replies
chutzpah Posted 13 Oct 2008 , 3:27pm
post #2 of 16

Oh sweet Jesus, I can't believe what I am reading here. Why in the world are you doing this? Duh.

Do you have a written contract with this company? If not, then stop *working* for them. If you have a written contract you need to give notice RIGHT AWAY!

lapazlady Posted 13 Oct 2008 , 3:37pm
post #3 of 16

My, what a nice arrangement for them. You do all the work and they make a good profit. Get out from under this as quickly as you can.

ThreeDGirlie Posted 13 Oct 2008 , 3:49pm
post #4 of 16

Sounds to me like they're the pimp, and you know what that makes you...

Doesn't sound like such a good deal any more does it?

TC123 Posted 13 Oct 2008 , 4:01pm
post #5 of 16

My humble advice?... Run!!! Quickly! icon_surprised.gif

buttercreammgt Posted 13 Oct 2008 , 5:36pm
post #6 of 16

When I first started doing this I had never made a wedding cake now I've done 11. I've looked into advertising and its a huge percentage of my profit. I really am scared of running my own business because I'll be lucky to do 10 cakes a year and I will have to speand money to advertise and cake shows. Now I at least get guaranteed work. Also I'm making around 25 an hour

mixinvixen Posted 13 Oct 2008 , 6:47pm
post #7 of 16

if you're asking questions, then you're not sure...why go into a business without knowing if it's what you want to do?

i really don't understand why people are willing to give their money to someone just because they run their mouth....i'm pretty good at doing that myself icon_redface.gificon_biggrin.gif, and don't need to share my profits. i'll ring my own bell, get my own customers, spend my own money...all of it!!!

mixinvixen Posted 13 Oct 2008 , 6:49pm
post #8 of 16

btw: 20 weddings a year doesn't seem like much at all..i get asked several times a week if i do wedding cakes, and have to turn them down, typically...if you bake it, they will come!!!!!!!!!!!!!!! icon_biggrin.gif

peg818 Posted 13 Oct 2008 , 6:52pm
post #9 of 16

why are you giving them the profit off the other cakes that aren't booked through them??

Do i think they are taking advantage of you, absolutely, unless you are only giving them the 40% of the profit, if you are giving them 40% of what a client pays for the cake then you need to run fast. Are they covering you under their license and insurance, if so, 40% of the profit might not be that bad.

BUT You should only be paying them for the cakes they book for you not the ones you book on your own.

buttercreammgt Posted 13 Oct 2008 , 7:35pm
post #10 of 16

The reason why they get a percentage of the cakes I find and do is because I would have to recreate all the methods I use in making the cake. To me it's really confusing also I like to keep what I do uniform so people know what they are getting when they order a cake from me. i used to pay only 5 percent to them for my cakes but they just adjusted things so now I give them more of the profit. Thats why I'm miffed

SouthernSugar Posted 13 Oct 2008 , 8:13pm
post #11 of 16

I don't understand why you are paying for cakes that you book yourself and 40% is WAY too much. I am really more of a hobby baker than anything but with no advertising, hardly any word of mouth and no promotion of any sort I still manage to pick up at least a cake a week. Business is there, run far away and do not let these people take advantage of you anymore!

scrapperjade Posted 14 Oct 2008 , 6:14pm
post #12 of 16

Do you have a written contract that stated that you were only to pay 5%? If so, then they can't legally change the requirement without having you agree and sign a new contract.

If you have no contract, tell them to lower it. It sounds like they are taking advantage of you! Why should you pay them 40% of cakes that YOU booked by yourself? Even if you are re-creating their cakes, 40% is high for them to do nothing.

Horselady Posted 17 Oct 2008 , 5:03am
post #13 of 16

and if you don't have a contract there is no guarantee that they will not send the business somewhere else while they "say" they are sending it all to you....

That is what you're paying that 40% for, the continued referals...I assume these people are wedding planners or caterers or something, etc....

buttercreammgt Posted 17 Oct 2008 , 3:22pm
post #14 of 16

I have an update. I talked to the owner. I asked him to write a very specific contract. I also asked for 80% of the cakes I booked. He agreed and is going to take a few days and get something nailed down. He has agreed also to the 20 wedding cakes a year. I feel pretty good about things now.

-K8memphis Posted 17 Oct 2008 , 3:48pm
post #15 of 16
Quote:
Originally Posted by chutzpah

Oh sweet Jesus, I can't believe what I am reading here. Why in the world are you doing this? Duh.

Do you have a written contract with this company? If not, then stop *working* for them. If you have a written contract you need to give notice RIGHT AWAY!




I mean if your issue got Chutzpah praying in public--OMG!!!
It's gotta be serious!!!

icon_lol.gificon_lol.gificon_lol.gif

But 20% is a lot. Maybe go ahead and negotiate the 20% on the cake itself and then you can collect a favorable and complete amount on the delivery.

I'd try and do the 20% on basic cake and if there is additional charge for making special flowers or toppers you should get all that. If these folks are getting this many orders then they can be fine with this arrangement--it's all gravy for them.

Press it some more is my advice. And we'll all keep praying about this!!

Mike1394 Posted 17 Oct 2008 , 11:17pm
post #16 of 16

I might have missed this. The cakes you get, I'm assuming they are done in the at work kitchen? If so the 20% doesn't sound that bad. Good job if this is the case.

Mike

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