Pricing To Sell To Another Retail Business

Business By No-goodLazyBum Updated 9 Dec 2009 , 7:28pm by cakesdivine

No-goodLazyBum Posted 9 Dec 2009 , 6:18pm
post #1 of 4

I need guidance as to how I would do pricing for resale. I have offers to sell cake slices, cupcakes, and cookies at a convenience store and a restaurant. How do you price for resale?

Can someone give me an example of how you have done it?


3 replies
itsacake Posted 9 Dec 2009 , 6:47pm
post #2 of 4

I haven't done it (yet), but if/when the opportunity arises it seems to me one would do what one always does. Figure out all the costs including overhead and labor (that's your time) and see what makes sense. If the price you come up with then sounds good to both you and the shopkeeper, you do it. If not, you don't.

Though you might sell for less than the normal price if your costs are less because you are buying in larger lots and you can do a faster assembly-line kind of production, in the end, you still have to make a profit or why bother.

You don't want to lose on every item and think you can make it up in volume icon_evil.gif

indydebi Posted 9 Dec 2009 , 7:09pm
post #3 of 4
Originally Posted by itsacake

You don't want to lose on every item and think you can make it up in volume icon_evil.gif

icon_lol.gif Yeah, don't fall into that old joke about "We're losing a dollar on every item we sell, but we'll make it up on volume!" icon_lol.gif

cakesdivine Posted 9 Dec 2009 , 7:28pm
post #4 of 4

Been there - done that - won't do it again! Customers aren't going to pay a price that is higher than the Hostess or Little Debbie snack cakes they can get from the convenience store side. Your product will sit, then half will have to be trashed as shelf life is only about 3 to 5 days. They won't be able to sell enough to make it worth your while to lower your normal costs, and even if they give your company the credit for the cake slice, if it is on it's last day the quality will not be as good by that time and your name is associated with a sub par product simply because is sat in a case for a week. The volume will not be there for them to order alot of items from you at any one time or on a regular consistant basis. Eventhough this sounds great it really isn't. I too had my cake book, dessert items available in their deli case, and a few grab & go quarters and rounds for special events (the convenience store I dealt with was very upscale and had a buffet barbeque, deli, and wine alcove inside). All but one of the grab & go's ended up in the trash, and the individual stuff sat for ever. My stuff was there on a consignment type basis, so they only paid me if someone bought something, and if someone placed a special order they got a 10% cut of the sale. Odd thing was my wedding & custom sales kept coming through my website, not one person ordered custom from the convenience store/restaurant. After having to throw out 4 case cakes and almost half of my individual product I decided that that location was not good. One of the clerks told me that people just didn't want to pay $1.50 for one cup cake when they could get a package of 2 Hostess cupcakes for $1.29. The restaurant already offered fresh baked cookies that they prepared daily so offering cookies instead wasn't an option.

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