I know contracts are standard for cakes and other large orders, but what about if you get various smaller orders? Are contracts even used much in the cookie industry? I will be starting a cookie co. that sells decorated sugar cookies as well as mixed trays for weddings, parties, casual orders, etc. My minimum sugar cookie order will be 2 dozen (starting at $48 ) and mixed trays a minimum of four dozen ($29) and they both go up from there. I feel silly asking someone to sign a contract for thirty bucks worth of cookies but I want to do things right. Any thoughts? Also, if anyone has a sample contract for cookies I would love to see it.

Oh yeah, forgot I had this. This is how I am thinking of charging, based on various cake contracts I have seen. I know it sounds really lenient, but I just need a starting point. Any input would be awesome.

Payment

For orders less than $75. The full amount is due within one week of placing the order to reserve the date. Payment may be in the form of cash or check. Failure to pay by the due date will result in the cancellation of your order. Should you have to cancel your order any time up to two weeks before the delivery date, any money you have paid will be refunded. If you cancel within 2 weeks of the delivery date, you will be refunded 50% of the money paid.

For orders over $75. A non-refundable deposit of $40 is due within one week of placing the order to reserve the date. The full amount of the balance is due 2 weeks before the delivery date. Payment may be in the form of cash or check. Failure to pay by the due date will result in the cancellation of your order. Should you cancel your order after payment has been made and production has begun, you will be refunded your money, less the cost of supplies purchased, expenses incurred, and the deposit for the cookies. If you cancel your order within 1 week of the delivery date no money will be refunded.

I am wondering the same thing, sounds like we're doing the same kind of business.

I will probably end up making my own which will be VERY short compared to the the cake ones I've seen, I'm hoping to get it all on one page. I do however, want to cover my butt in case someone orders 100 intricate wedding cake cookies and cancells at the last minute. It will have something similar to half down at time of order, then full payment before they receive the cookies. I think it's smart to cover our bases.

I just prinited out the 16 page one that Doug (I believe) made up and I will use some of what pertains to general bakery things but just leave out any cake related things. I'm wondering if I can get 16 pages down to one, lol!!!!

I will try to work on it tonight and then let you know what I come up with.

Heidi.

Oohhhh, I really like your wording so far! Keep it coming!!

I pretty much use contracts for delivery orders and rarely for pickup orders. Once in awhile I do, but hardly ever. Usually they pay a deposit and pay the balance when they pick up so that's pretty easy..just exchange the rest of the money for the product...they are there to see that the product is what they ordered...haven't had a problem with that yet.

I mean, if I order a floral arrangement, I don't sign a contract...so...I don't worry about it unless its delivered...or a huge order and the person expects a contract.

Thanks Heidi! It's good to know my scheme is shared by others!

Kitagirl- I agree with you, I just wasn't sure what the norm is. I know I'll need at least half up front to cover costs but it seems silly to ask $15 now and $15 later. I tried remedying this in my two-price-bracket method but maybe there's a better way to approach smaller orders. I was actually thinking of simply handing this to the customer as part of my Pricing & Policies as opposed to making them sign something. Large orders (assuming I'm lucky enough to get them!) I suppose should have a more formal contract, but at what point would I consider them large? $50? $75? $100? (as a point of reference, $75 would be about 3doz sugar cookies or 10 dozen assorted) Ugh, too many details!

how does this sound?

Orders under $50: all up front

Orders $50 and over: half now and half at pickup/delivery

For orders over $200, I think I'll follow your lead and make it more like $50 up front, however I don't think I'll make it a formal policy. Instead I will make it more of a case-by-case basis. It will simplify wording things as well as make me sound flexible to the customer. ("well, I guess I could cut you a break..." )

I agree, signing a contract is rather formal and a hassle. Since I don't want to get that big as a business, keeping things simple is probably my best bet.

Oohhh, this is all so interesting! I'm so glad you asked CMM!

What I was thinking, is that I would pick a number/price that would totally piss me off if someone ditched out on, maybe around $100, and then for orders over that I would require half down/half later. If it's an order for say flower cookies that aren't personalized with a name or logo I could always resell them, but maybe there will be a different option for someone who wants EI logos or birthday cake cookies with someones name on them.

Or maybe it will just be a deposit for those personalized ones and none for general ones. I'm not sure. I think that if a person comes in and makes special requests of frostings, writing, decoration, bags/bows, they should be prepared to pay some up front, do you think? I wouldn't go to a screen printing place to get my logo on kitchen aprons (can you tell what my current project is, lol) and not assume that they would require some kind of payment up front, right?

But like you mentioned, I don't want to put anyone off of my bakery because they had to sign a two page contract for some cookies. I just don't know!! My sister-in-law is a contract lawyer so maybe I'll ask her. Even if she can't help with the specific bakery things at least she'll know what I can and can't legally put in there.

As soon as I start a rough draft I'll share it with you.

I would always always take a deposit of some sort, ever time...or prepayment.

I got burned...once. Never again. haha.

I have a good friend just getting into making cookies and she doesn't take deposits yet, and she has a customer right now having her make sample cookies and giving her the runaround...hopefully she'll start taking deposits soon.

What do you think about just sticking with half now half later for any and all special orders? That way there is no wiggle room, no questioning later if it was the right thing etc....that's just what it is. And if there is a sign posted somewhere where the customers can see it, just something small taped to the counter, they can't argue and say they didn't know, right? All I have to say is "it's our policy" and leave it at that. Or is half too much? But I'm assuming most of my special orders aren't going to be over $100 so $50 shouldn't be too much to ask, right? Am I on the right track or is this way a bad idea?

Sounds good to me!

My orders sometimes add up to more and my deposits are nonrefundable so I don't do half for the larger orders but yeah I would say half is very reasonable for custom work.

I take payment in full, everytime. Of course, I have a website that requires that you pay for your order, so that makes it easier on my end. If you were to do a wedding for say $200 or more, and it was way in advance (like a month or more) it might be a good idea to write up a "catering" contract for your cookies. Otherwise, I think it probably isn't a good idea. I just did a $300+ order and it was paid up front. If they want them, they will pay.

350BakerStreet, your cookies are AMAZING! No wonder people are willing to pay your price, you have a beautiful product!

Makes me want to go back to the kitchen until I can keep up with the big kids...

Tee hee...did you just call me a BIG kid?! Awe shucks! I still feel like I'm just starting out. It's been three years this month since I started doing cookies. I remember when I first started, my son was a month old and I only had two cookies, the chic hearts and rubber duckies (which aren't even on there anymore, haha). It takes time, but you'll get there. If you need someone to test them on, I can pass along my address

IMHO, if it's an order over $100 - you should have a contract. That way you're covered, and everything you have agreed to is all in writing. I think you all have some really good idea's about what to do! Thanks for starting this thread!

I currently don't ask for a contract...but I think that I will start. My business is just starting to pick up but I think that its a good idea. I real like some of the examples given by previous posts. I just might have to borrow some of your ideas for wording the contract

This is a good thread...thanks for starting it

350BakerStreet WOW! your website looks very professional and your cookies AMAZING! congratulations! Do you have a shop or you work from home? Cbya.

Thank you and thank you I work from home...in a separate kitchen in my basement. We just moved here on Christmas eve, so I'm still working out of the upstairs "family" kitchen until I can get the cabinets installed. I got some old cabinets from the in-laws that I'm refinishing. I don't suggest it...a LOT of work and time! Hopefully I'll be done by next Christmas, lol!

As for the contracts, I think it's a good idea to have one. Since I use PayPal and have the online order form (I use CityMax.com to build my site...trying to build a better one with my cakes too, hence Baker Street), I'm pretty much covered. If you have a PayPal account, writing up an invoice is a good idea too, then you can accept credit cards without an actual merchant account. Just another thought.

Thanks for the advice 350BakerStreet . Once I get my tooshie in gear and create a website, using PayPal sounds like an awesome idea .

BTW....CONGRATS on your move and personal business kitchen!! For the time being, I can only dream......

Ok, here is what I have so far on my order/contract form. And it may sound strict, but then there is no room for questioning, nobody can give me a hard time and whine about having to pay half up front when the order is placed. It's in black and white and then I always have the option for not requiring it for excellent repeat customers or close friends and family that I trust.

"A non-refundable deposit of 50% of the order total is required when the order is placed. The date will remain open until the first half of the payment is recieved. The remaining balance needs to be paid before or at the time of pickup."

"I understand that by signing this contract I agree to have paid for half my total upon order placement and the balance when the order is picked up. Failure to pay the balance will result in NO COOKIES FOR ME."

Aside from typo's and grammar errors, what do you think? Too repetitive? Bad Seinfeld reference? I just don't want someone to say "well I didn't realize I needed to pay....." I will have my editor friend proofread it and make it sound pretty before I actually use it.

The order form that I want to use is one page with my logo at the top, date and person placing the order, date of event, date of pickup, half the page is empty for special instructions and area to trace cutter, then the contract part is at the bottom with a place for a signature.

Am I missing anything? Too general? Too mean?

I would suggest changing the "The remaining balance needs to be paid before or at the time of pickup" to read "The remaining balance needs to be paid in full no less than 5 business days before scheduled pickup/delivery". Or something to that effect. You don't want losers showing up at your door whining about "Oh, I paid the first half and I only have a little bit more (but not the full balance), and I came all this way to get my cookies...boo hoo...blah blah blah..." If you require the full balance before you start baking, then you don't have to worry about bad customers like this ('cause they will have paid you already), but you're still allowing the break-up of larger payments which makes it more convenient for the good customers. Does that make sense? Otherwise, I think it sounds good (I'd say "great" but I'm not a Seinfeld fan, sorry).

...and thanks Lita

Lol 350, I put that in as a funny so it can easily come out. I just hate how the wording is so so so serious, that's just not me, so if I can get the legal stuff in with a bit of humor at the end I'd like to. But no biggie if it has to come out.

Haha...my husband thinks I'm nuts for not totally loving Seinfield I agree, the legal stuff can be a little off-putting. No harm in using a little humor to lighten things up

GAH! Apparently "watch this topic" only applies to the first 36 hours! I'm so glad this thread has been helpful to more than little ole me!

Quote:

Originally Posted by 350BakerStreet

Tee hee...did you just call me a BIG kid?! Awe shucks! I still feel like I'm just starting out. It's been three years this month since I started doing cookies. I remember when I first started, my son was a month old and I only had two cookies, the chic hearts and rubber duckies (which aren't even on there anymore, haha). It takes time, but you'll get there. If you need someone to test them on, I can pass along my address

Yes, yes I did call you a big kid. We are all kids deep down, especially when you put a cookie in our hands! Wow, you started out with a one month old?! And didn't lose your mind?! Bravo! My munchkin just turned 8mos and sometimes I think I'm crazy to try and start up a business. But then, my son is an ornery little cuss. I'd definitely let you test my cookies, but I don't think my husband would like that much. He whimpers if there are no extras for him as it is...

Right on! A fellow hater OMG, that dance makes me sick...bbbbaaarrrfff! Sorry, I can be dramatic sometimes, haha.

And yes, it was difficult with a one month old, but he was pretty good. He just barely turned 3 and now he's a total PITA, his favorite word being, "No" and favorite phase being, "No, I can't", as in "No, I can't go to bed". I'd like to think if he had a playmate or sibling he might be better, but I doubt it. Probably just more trouble for me, lol!

I didn't get a lot of orders right off the bat, but with each one I did I was able to put up new pictures on my site and build my portfolio. I still have several cookie cutters that I haven't even used yet. If you haven't found a good supplier for your cutters, please go to CopperGifts.com. They are amazing! The cutters are strong and last a lifetime. Granted they are more expensive than regular tin cutters, but it's totally worth it. Tell them Schannelle sent you

OMG, I have a two year old and a 3.5 year old. And 350, it does not get any better if they have a sibling, lol. That was our plan, to get it out of the way, have two and they'll have constant playmates. As of now it is constant screaming, whining, toy stealing etc....and once you turn your back because one did something naughty then the other one is coloring on the walls. It's like I'm raising monkeys sometimes.

OK, sorry this doesn't have anything more to do with cookies, lol. I'm just really glad that we're talking this out, it's really helped me with ideas for my contract.

Heidi.