Question ~ Collaborating W/ Caterer And Pricing?

Business By Swede-cakes Updated 19 Nov 2008 , 11:31am by -K8memphis

Swede-cakes Posted 7 Nov 2008 , 7:55pm
post #1 of 10

Hi all,

I met with a caterer to see how we could promote business for each other. She told me she'd like to have me do desserts and cakes for events and weddings. thumbs_up.gif Now, she just left a msg. asking me to do an order for over 100 cupcakes in a few weeks, and I have questions to run by you savvy CC'ers.

Do any of you collaborate with a caterer like this? If so, how does the product pricing normally work for you? Do you charge your usual amount per cupcake or cake to the caterer, and the caterer just passes that cost along to the customer in the total billing? Or do you reduce your price slightly as its a catering job that they booked, and are subbing out a portion to you?

I'd love to hear your thoughts on this...Thank you!

9 replies
-K8memphis Posted 7 Nov 2008 , 9:40pm
post #2 of 10

I would charge the same.

You are enhancing their business considerably. All they have to do is pass the cost on or upcharge it.

Are you delivering? Charge for that within the price you charge for the product or tack it on cleanly as delivery charge. Caterers run all over town they might not mind coming by & picking up.

I mean they have no supplies to order, no dishes to wash after you, they are getting a bargain. Charge full price.

cakesonoccasion Posted 7 Nov 2008 , 11:46pm
post #3 of 10

Definitely charge your normal price- chances are the caterer will upcharge and make a profit off of it- just ask them- I'm sure they will tell you if they plan to do that or not. But don't sell yourself short- you're in it for a profit! icon_smile.gif

Swede-cakes Posted 7 Nov 2008 , 11:53pm
post #4 of 10

Thank you both for confirming my initial feeling on this. I will call her tomorrow to accept the order, and I'm sure we'll talk price then. I don't know if I'm delivering, and if so, to where that would be. I'm glad you brought up that point, k8memphis.

You're both right, I am VALUE ADDED! icon_biggrin.gif

Laura612 Posted 9 Nov 2008 , 6:40am
post #5 of 10

From a caterer's standpoint... I'm more likely to do repeat business with someone that gives me a slight discount. After all you will be bidding for my repeat business. I would recommend doing at least a 10% discount.

Unless you are cheaply priced there is only so much that I can upcharge.

Swede-cakes Posted 9 Nov 2008 , 12:40pm
post #6 of 10

I'm open to offering her that kind of discount, Laura612, if that's her way of thinking.

As I started putting my numbers together yesterday in prep for the conversation with her, I got the feeling that I should offer her a bit of a discount. She's outsourcing the desserts to me, so I'm a subcontractor. Does that make sense?

Fortunately, I left her a msg and we have yet to discuss details on the order. I appreciate all of your points of view on this. Thank you!

OhMyGanache Posted 9 Nov 2008 , 1:24pm
post #7 of 10

I think the first question out of my mouth at the suggestion of this would be "what type of arrangement did you have in mind?". Don't stress yourself wondering what he/she will find acceptable - ASK. Even if you don't like what she's suggesting, at least you have a starting point for negotiation.

Swede-cakes Posted 18 Nov 2008 , 6:46pm
post #8 of 10

I have a follow-up question for this scenario. Do you request that the caterer pay a deposit to book the order, just as if she were a regular client?

Thank you for your help...

Swede-cakes Posted 18 Nov 2008 , 6:46pm
post #9 of 10

I have a follow-up question for this scenario. Do you request that the caterer pay a deposit to book the order, just as if she were a regular client?

Thank you for your help...

-K8memphis Posted 19 Nov 2008 , 11:31am
post #10 of 10

From a caterers standpoint I can see where they would like some wiggle room so they could upcharge however, I would not feel it not my responsibility to provide that up front. As time goes by and I can bring down my cost by the steady consistent ordering, maybe. I mean if the caterer wants to clear money on the desserts they need to make them themselves.

About the deposit--It depends on the order. If they wanted a sculptured cake, yes on the deposit. If they want twelve dozen each of cookies & brownies & lemon bars or something probably not.

Quote by @%username% on %date%

%body%