Your Opinion Please...?

Business By MLopardi Updated 22 Apr 2009 , 12:57am by Karema

MLopardi Posted 21 Apr 2009 , 8:15pm
post #1 of 2

I'm new here to CC and have already received so much helpful information and encouragement! I'm hoping some of you might share your experience with "contracting" your cakes.

I've recently started making cakes for a local caterer. This works great for me because I don't have much time to market my cakes to the public, plus she rents a kitchen which allows me to be legal. However, I provide all of my own supplies, pans, ingredients etc. She just passes the cake orders on to me as they come in. Sometimes we both meet with a client to plan the cake, sometimes I meet with them by myself.

We came to an agreement that she would keep 30% of the cake fee and I would get the other 70%. Both of us are brand new to this set up and neither of us had a clue how to set up our "contract".

Do you think the 30/70 set up is fair? Are there certain details I should ad to our contract? (We're still working on writing up an official contract to sign). Thanks for your feedback!

1 reply
Karema Posted 22 Apr 2009 , 12:57am
post #2 of 2

I would do 30%/70% split of profit only. Figure out your cost to make the cake and then you two can split the profit. So if you charge 125 to make the cake and the ingredients cost you $25 then you two can split the $100 profit. So she gets $30 and you get $70. That's just my opinion of what I would do because if not she would get $37.50. and you would get $87.50 minus $25 for ingredients. So your profit would be $62. It's not a huge difference but it does matter. Good luck

Karema

Quote by @%username% on %date%

%body%