OK, some of you may remember my post about doing the world's largest yard sale and doing really well. I actually met a woman there that brought one of everything I made. She asked for my card and info and asked me if I wholesale. I didnt think about it too long and said yes I could. I just got a call from her and she wants me to provide baked goods for a six week event that is four days a week. I was really excited. She said she basically wants me to make the product, package it, and deliver it to her and she will sell and raise the price to make her money back. She said that she wants to at least make $1 off of each product because she has to pay her staff. I totally understand. I explained that the product has to have my name on it as the manufactor and she said of course. Ok now I'm excited but I've never wholesaled before and dont know where to even begin. I cant charge her what I normally charge for cookies because she wont make anything on it so what should I do. Does this sound like a dream come true because its after thanksgiving all the way to after new years. Is there anything that I need do before I say yes?
Wow, that sounds wonderful. I would check the amount of items she wants and make sure it is realistic for you before you say yes. Also for wholesale prices I would go by quanity and knock $.25 off each after she orders so many of each or something like that. I am new to it all so I can't really say 100%. I know there are pleanty off cc's out there that can really help. Good luck and congrats!!!
Check to see if your insurance covers you for wholesale. Selling directly to the consumer is one thing, but when you start selling through a "middleman" who may not store your product properly, the insurance goes through the roof. I hope everything works out for you!
I never thought about the insurance. When I got licenced they didnt mention that. She did say I have to write "Manufactured by" on the label. I thought that was the reason why. I will look into that. Has anyone on here done wholesale before?
Just to help you out for replies...
A friend of mine did wholesale, and she had to have special insurance to cover her - that's why I mentioned it. You may want to call your insurance agent just to ask if you would be covered if you did wholesale...you are just asking the question.
I also know that there are special companies that deal with wholesale insurance...the insurance company that I deal with now will not cover me if I switch to wholesale (I asked). Please note, I am in Canada (things MAY be different here), but please don't do wholesale without at least asking if you are covered!
I don't want to rain on your parade, but I was asked to do this before as well and I didn't find that it would be very profitable for either party. Basically, I'm not a bulk distributor so I can't sell the items as inexpensively as the end seller wants me to. You're making the same product that you would sell to a regular customer just more of it. Sure you can cut them a bit of a break for ordering so much but you still want to feel like you're being fairly compensated. And then when they add in their profit on top of your cost, they feel that they'll be charging their customer too much. So it didn't work out in my case. Just giving my two cents.
I'm not sure whether you have a baking shoppe or go out of home, but while I was looking up licensing for my state, it said you needed to have a seperate license and approval before doing that. It might be worth it to check it out if it applies to you just to cover your butt.
That's so exciting though and I hope it works out well for you!
One of the things to consider when setting your RETAIL price scale, IS your wholesale price scale.