Hi, a friend of a friend owns a Gym with a ballet school (with over 100 ballet students). She is thinking of buying from me 100 to 200 cookies every weekend, and displaying them to sell to the ballet students in her gym. She still didn't contact me, but she sent me the message with our common friend.
How can I deal with her? I don't know how to price the cookies for her, and what price to suggest she should sell them at.
Someone told me to give her a 20% discount, then she can add 10% to my original price, but she would be selling them more expensive than I am. For example, I will sell her my 3$ cookies for 2.4$, and she can resell them for 3.3$.

Do you think that's fair?
I need help before she contacts me.

Thanks in advance.

Anyone?

First off, do not deal with a middleman. Period. It affects friendships adversely and nothing good comes of it. If she wants to deal with you she can call YOU, not send messages. I had a customer who tried that "she wants you to do this" "she wants to order that" then I sent word back through our mutual friend "then she can call me directly." Period. After that we dealt with each other and nobody else was in the mix.

Second, as for pricing, set your wholesale prices and stick to them. Make sure you are making a profit and don't worry about what she sells them for. And do not, under any circumstances, go on a contingant plan. I don't know why vendors like to propose that in food related items but they do.

Hope that gives you a starting point anyway. Good luck!!

Why would you discount the cookies? If you're doing them all by hand, then you're putting in the same amount of work per cookie.

Sell them at your regular price then let her decide what she's going to sell them for.

If she's serious about it, she'll contact you...not go through a friend. You do not want a 'middle man' for this.

Keep in mind too...100-200 cookies is a lot of work. Chances are if she only has 100 students, she won't sell one to everyone of them.

Thanks for your replies.

bobwonderbuns: I met this lady a few times at my friend's house. She will contact me soon, I told my friend that we will make a deal when the lady calls me. She asked my friend to give me an idea of what she wanted, she didn't call me, because she was at the hospital for some treatment, she is supposed to finish her treatment tomorrow.
Do you think atcake is right about not discounting?

atcake: I thought too that she might not sell all the cookies to her 100 students, but where I live, kids are sooooo spiled, and they have no value for money, so they will probably buy the whole quantity.

I thought of selling her with no discount, but I think I should discount, if she will be taking EVERY week.

Maybe you could try it for a few weeks and if it catches on then give a small discount if you still want to, after you see how much works it is.
Does she want decorated cookies ?
Does she want every cookie bagged etc !!
How can you price if you dont know any of the details?
Just a few thoughts!

Seriously, you think all these ballet students will buy cookies? Maybe you can try selling to aspiring models or gymnasts next?

I would try it for two weeks at $3.00 a cookie. And then if it's working out, continue the deal and give her a better discount, if that's what you want to do.

But as Bob said, you should definitely deal with her. No middle man.

the big questin is what kind of cookies? choc chip or cut-out-decorated kind? Makes a difference in your labor costs.

100-200 cookies is a BIG span. That's about 8 doz to 17 doz. And it's not per day ... it's per week. (My car dealership order stood at 10-12 dz per day). The reason I point that out is if these are drop cookies (i.e. choc chip), 8 doz is not volume enough to really enable you to buy in much higher volume for cost savings. You give a volume discount when the volume justifies or permits you to buy smarter in higher volume, with savings to you that you pass on to the customer.

If they are the cut-out-decorated kind, the above comments are correct ... you are still going to make them one at a time.

I dont know where you live, but I would not buy my daughter a decorated cookie every week after ballet class, and its at a gym??? She thinks she's going to sell 100-200 everyweek with that kind of clientel??? And what if there are leftover, will she want you to buy them back? or will she save them and sell stale ones next week?
With the economy the way it is, I guess I'd be willing to try, maybe just 100 the first week at full price and take it from there.

no discount no discount no discount.

what was "someones" reason for suggesting a discount?!

You have many factors to consider... and I agree mostly with the other posters. especially indydebi.

I would get her info and then tell her you will call her the next day with a quote.

Thanks a lot for all your replies. I honestly think that she WOULD sell at least 100 cookies per week, knowing her wealthy very spoiled students.
I will do as you suggested, no discount!! At least until I see where this will go.
I'll keep you posted.

It's been a couple of days. So have you talked to her yet??

cylstrial: Thanks for your concern, but no, she still didn't call me. I saw her today, but it was after the death of our common friend's relative, so it wasn't the right time to talk.