What Percentage Should A Business I Rent From Get Of My Sale

Business By steddy1974 Updated 29 Nov 2009 , 3:34am by steddy1974

steddy1974 Posted 27 Nov 2009 , 2:16am
post #1 of 12

I am renting space in another businesses kitchen. They sell pre-made meals and also offer clients the option to come in and package their own meals.

Well they said I can sell my baked items in their store and sell them as well, but I want to know if I should give a percentage of my sales to the owner of the store and if so how much?

He lets me bake for free and I teach a few kids classes for him, but still get paid a percentage for the classes, so it is a really good deal. So I want to be fair but also not cheat myself.

Thanks!

11 replies
Lita829 Posted 27 Nov 2009 , 2:33am
post #2 of 12

I'm happy that you posted this question! Right now I am primarily a hobbyist but I'm about to look into renting space in a commercial kitchen and I was wondering how we'd financially work out that situation if she was to decide to sell any of my baked goods in her cafe. Its all in its infancy for me but I'm curious and in need of direction in the same way that you are so I'll see how other CCer's who have made that leap handled that.

Like you, I want to be fair but not cheat myself.

indydebi Posted 27 Nov 2009 , 2:49am
post #3 of 12

I can't tell by your post ... did he ASK for a percentage of the baked goods sales? Or are you just trying to "be nice"?

If you're already paying rent, then that's the business deal/arrangement you have in place. You pay him $xx ..... you get to bake in his space. Unless you have some stipulation in your contract with him on a situation like this, I see no need to voluntarily give him a cut. That's not really how business is done.

Lita829 Posted 27 Nov 2009 , 3:07am
post #4 of 12

Thank you, Indy. I know that I didn't post the question but you answered one of my questions concerning this. I may be jumping ahead of myself because she may not even want to sell any of my goods but its good to have a baseline of how business is done.

cylstrial Posted 27 Nov 2009 , 6:22pm
post #5 of 12

Whatever your agreement may be, you just need to work it out and put it on paper.

Maybe you pay $15 an hour to rent the kitchen. So if you only use it 3 hours that week, you owe the owner $45. But maybe you also owe money for ultities on top of your rent.

Or as the OP suggested, maybe you pay rent, utilties, and a % of your sales. Or maybe two of those. There's no right or wrong answer. Every situation is going to be different - but you just need to put the details in a contract. And specify a time period, such as a year. Then you can re-negotiate the contract in a year.

Lita829 Posted 28 Nov 2009 , 4:35am
post #6 of 12

Thanks, cylstrial icon_smile.gif

Ruth0209 Posted 28 Nov 2009 , 6:48am
post #7 of 12

Personally, I think it's a cleaner arrangement if you pay to rent the space to do your baking and then just sell whatever you make to the shop owner outright. Then he can sell it for whatever price he wants. That way, if you make items that don't sell, you're not out the cost for those.

Lita829 Posted 28 Nov 2009 , 2:18pm
post #8 of 12
Quote:
Originally Posted by Ruth0209

Personally, I think it's a cleaner arrangement if you pay to rent the space to do your baking and then just sell whatever you make to the shop owner outright. Then he can sell it for whatever price he wants. That way, if you make items that don't sell, you're not out the cost for those.




That sounds like a good idea. I can see how that would be a cleaner arrangement. Thank you, Ruth icon_smile.gif

erinalicia Posted 28 Nov 2009 , 4:15pm
post #9 of 12

The OP said that the owner lets her bake for free but she also teaches some kids classes for him and she gets paid a percentage for teaching. Maybe she isn't getting the notices that there are replies since she hasn't responded.

cylstrial Posted 28 Nov 2009 , 5:09pm
post #10 of 12
Quote:
Originally Posted by erinalicia

The OP said that the owner lets her bake for free but she also teaches some kids classes for him and she gets paid a percentage for teaching. Maybe she isn't getting the notices that there are replies since she hasn't responded.




Could be. When you create a thread, you are supposed to get an email to let you know that someone has replied to your thread. However, that 1st email isn't coming thru. Once she views the thread again, she'll get the email. And if she goes back, she'll get another one. But for some reason that initial email just hasn't been working for months.

I think a lot of us just know to go and check, but if you're new - ya probably just think no one has responded.

Or she might just be busy with the holidays.

indydebi Posted 28 Nov 2009 , 5:21pm
post #11 of 12
Quote:
Originally Posted by cylstrial

Could be. When you create a thread, you are supposed to get an email to let you know that someone has replied to your thread. However, that 1st email isn't coming thru. Once she views the thread again, she'll get the email.




Actually, once you create a thread, you need to go back into the thread and mark the box at the bottom of the thread that says "Watch this thread for replies". Otherwise you don't get the notifications. It's odd that the OP doesn't get on the notify list automatically from the git-go, but that's how it's programmed.

And just going back to VIEW the thread doesn't start the emails either. If you didn't mark the box at the onset, you have to post something to start the emails.

It's like the program is set up to send an email to anyone who POSTS on the thread. STARTING the thread doesn't count as a post. Just my guess.

BUt just go back in and mark the box when you start a new thread and you'll be fine.

steddy1974 Posted 29 Nov 2009 , 3:34am
post #12 of 12

Thank you all for your replies. I am not getting notified when I get a response to this post.

The owner is not making me pay rent, so I feel like I should give him a percentage of what he sells out of his place, but I just do not know how much that should be. He has not asked yet for any amount, but I just want to make sure it is a fair amount when we do discuss it. The first time I will actually sell some product will be this week so we are meeting early in the week and I wanted to have some thing to go on in the meeting.

Thanks!

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