When I picked up the coffee for my 'real job' today the lady that owned the coffee place asked me if my son owned a restaurant in town and she informed me she was his manager at Big Boy's years ago. Anyway, she says she can't bake as much as she used to and several people in town said to ask me because I bake for my son (on my days off-ha ha). I told her I would bring her my book tomorrow with what I make for the restaurant and am beginning to sell to others and we could talk.
My question: if we come to an agreement, what do I charge her so she can sell my stuff piece by piece at her coffee shop? If I charge customers that order from me directly $32 for a certain cheesecake, I'm sure she wouldn't pay that. How do I determine a fair price for both of us. I asked my son and he said he was staying out of it!!
If she orders onesy-twosy's, then it's just an order and she pays regular price. If she orders enough volume to enable you to save money on supplies and/or productivity (labor/overhead savings), then a lower price is justified.
If she doesn't want to pay your price, you need to remember, that she's buying specialty items from you ... not getting the mass produced, frozen ones from her food distirbutor.
There's a cost difference in that. Does she want to be able to tell her customers "These are home-made" or does she want to tell them "I thawed these out just this morning!"?
(*) For the record, the term "home made" does not necessarily mean "from scratch". I just don't want to start that can of worms crawling across the screen on this one.
I think this may require some negotiation between you and her. She will have an idea of how much profit she would like to make off of an order, but you have to make your money for your time and expenses.
I would set out your minimum amount of profit you would be willing to take on each item. Like a simple 8in cake would be less than a cheesecake, and so on.
Then set your prices a bit higher than that and put them forward to the lady and see how it goes.
I was working with a sweet shop, making cupcakes for them. My wholesale price to her was more than she was selling her current cakes at. She balked when she saw the price, saying, "I dont' even SELL mine for that much!"
I pointed out that there was a grocery store right across the street from her shop ... and if she was going to sell grocery store cupcakes, then why should people make a special trip to her shop to buy them? But ..... my cupcakes were larger, they were filled, they had better tasting icing, etc., etc.
She bought my cakes and sold them for a higher price in her shop.
Remember .... you're a salesman first. A baker second.
Thanks for all of the input. If I charge her $32 for a cheesecake and she marks it to $4 a slice and I mark it for 14 slices, she'll still make $24 profit. so I guess some of it depends on her mark up too. this morning I prayed for a way to increase my business; thank the goddess!!
ONLY FOUR DOLLARS????? Good lord, Olive Garden's cakes start at OVER $5 a slice, including a cheesecake selection.
I actually was working at olive garden up until a few months ago and our desserts started at 5.95 and some were up towards the $7 mark. We got them in frozen and just thawed and plated
I don't get out much!! I only guessed at what she might charge. I know my son only charges $3.99 for dessert and that's pushing it around here. I've tried to get him to raise his prices. I'm going this morning to talk to her.