How Much Is The Markup On Cookies If Sold In A Store?

Baking By TracyLH Updated 21 Oct 2008 , 1:23pm by TracyLH

TracyLH Posted 20 Oct 2008 , 4:33pm
post #1 of 14

This is only a possibility (fingers crossed though!), but someone I know is opening a wine shop, by law needs to carry some food items and wants to carry my cookies. My question is, how much are cookies usually marked up if sold in a non-bakery store? I am trying to figure out how much I need to come down from my original price in order for her to have a mark-up and for me to still make it worth it time-wise.

Any thoughts would be sincerely appreciated as I really have no idea.

Thanks!

13 replies
GeminiRJ Posted 20 Oct 2008 , 5:22pm
post #2 of 14

I wouldn't came down much, just to allow her to sell the cookies cheaper. Simply because there is now a "middle man" doesn't change the amount of work you're putting into making the cookies!

TracyLH Posted 20 Oct 2008 , 7:37pm
post #3 of 14

Oh, I don't think she will sell the cookies cheaper. I know she needs to make some money on them. I just don't know how much the markup usually is. For example, let's say I have a cookie that I would normally sell for $5 (they are big cookies.) and she is planning to sell it for $5, what should I offer for her to buy the cookie at? (i.e. - how much below my normal selling price should I expect to go?)

Does this make sense?

GeminiRJ Posted 20 Oct 2008 , 7:46pm
post #4 of 14

Sure, I understand. She wants to get the cookies at a discount so she can make a bigger profit on them when she sells them. You give her a price that you are comfortable with, and don't worry about the mark-up. That's her job.

TracyLH Posted 20 Oct 2008 , 7:52pm
post #5 of 14

Hmmm. I guess I just try offering them to her at what would be the normal price (I go by what I see on CC of $1/inch) and see what she thinks or come down a bit. I do want her to have them in the store, but was concerned I would have to mark them down 50% from my 'normal' price in order to do so and that is just not worth it with the time that goes into them. Luckily, it is a wine shop in a nice area. I don't know if this will even come to pass, but I really appreciate the help as I know this will come up and I need to be prepared. I know she needs to make a profit on them, so it is a balancing act of keeping in mind my time, etc.

GeminiRJ Posted 20 Oct 2008 , 8:04pm
post #6 of 14

I realize it is a good opportunity for you, but remember who is doing all the work here! If she wants a bigger profit, she charges more. It isn't up to you to sell them so cheap that all the profit goes to her.

SweetDreamsAT Posted 20 Oct 2008 , 8:06pm
post #7 of 14

Tracy,
This is always one of my hardest questions, so I feel for you! Especially for those of us just starting out... we WANT to make cookies and we WANT people to buy them, so its easy to undersell ourselves. But I hear over and over again from the veterans - charge what you're worth, not just what will sell cookies to the masses. If someone thinks your cookies are too high, then they are not the right customer for you. On the other hand (and I know this might sound contradictory) if you think it will be a good way to get your name out there to people who might be your future customers, then there may be room for a LITTLE compromise/discount (consider it cost of advertising). I'm sure you know what its like to be up into the wee hours, killing yourself on cookies - don't let that happen unless you're being generously compensated for it!!
I doubt I'm being any help - just commiserating with you! Good luck!

shiney Posted 20 Oct 2008 , 8:21pm
post #8 of 14

Tracy, keep in mind, does she buy them all from you, or just what she sells? Will you be left with unbought cookies after a week? Take it all into consideration. I can see folks buying them as they nip in to get that last-minute bottle of wine on their way to a dinner party, or buying them while they are getting drinks for a gathering they are throwing, then the word will get out, and they will go like crazy. Your cookies are beautiful, and they should sell just fine. The problem is that it's hard to go UP on your price once you've got the ball rolling.
Good Luck!!! icon_smile.gif

smab109 Posted 20 Oct 2008 , 8:45pm
post #9 of 14

Do you have a contract? Before giving her one cookie, I would make sure the business deal is in writing. Protect yourself. Dont lower your prices, you have to make it profitable for YOU also!

Good luck.

yankeegal Posted 20 Oct 2008 , 8:54pm
post #10 of 14

Most stores want you to sell them your cookies at a wholesale price instead of retail. Much less than you would sell them for. The perks for you are much more exposure in a store and if they order a lot from you-that's great too.
Here is a thread on wholesaleing from three of the best cookie people on this site:
http://www.cakecentral.com/cake-decorating-ftopict-591333-.html

TracyLH Posted 21 Oct 2008 , 10:20am
post #11 of 14

Oh, thank you all so very much! Each of you gave opinions that are so helpful and so appreciated and you all make very good points. I have a bit more time to ponder this, but I can see that it is not a good idea to lower them too much. I need to take into account the hours and the great deal of effort that goes into these cookies. Getting the word out is good, but honestly, I can only handle so many orders anyway. (I am small potatoes compared to most of you.) If she wants them, she wants them and I can see keeping the price on the lowish side, but not so that I will regret doing it when I am up at 1 a.m. working on them. Thanks to each of you for your very valuable help! icon_biggrin.gif

JenWhitlock Posted 21 Oct 2008 , 12:40pm
post #12 of 14

Tracy,
CONGRATS on the offer or consideration for the store, that's awesome!

I think that I agree, you can't reduce your price much, there is too much time involved and you will end up getting frustrated. you are giving up sleep and time with your family - you need to feel valued for it.

I wouldn't worry though, people will pay for your cookies - they are great! so much better then any cookies that I see in boutiques around here.

finally, I remember reading a thread about who handles the unpurchased cookies. it was mentioned above, but I think that you need to come to a clear understanding with the shop owner. someone here was going to sell on consignment, and most people thought that that was a bad idea because of the perishability of the cookies. it ends up being a win-win for the shop owner because they have no responsability.

good luck!

weddingcake1 Posted 21 Oct 2008 , 1:08pm
post #13 of 14

Ok you are helping her out by making cookies because by law as you said she has to carry some food items, so I would sell her the cookies at my regular price and let her worry about mark up price. And I would ask to be paid on delivery, and any left would be her problem. I quess someone would have to eat them. That is what I would do anyway, and just explain that you work hard for your money and you just can't do them any cheaper.

TracyLH Posted 21 Oct 2008 , 1:23pm
post #14 of 14

Thanks, ladies! I fully agree not to do them on consignment. Far too much time goes into these for that. Thanks again for your thoughts!

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