Wholesale Pricing

Business By loriemoms Updated 8 Jan 2015 , 4:50pm by ellavanilla

loriemoms Posted 2 Feb 2010 , 1:44am
post #1 of 12

I have a question for those of you who sell wholesale to restaurants, etc. I assume you take your retail costs and lower it by a certain percentage. What is the common rule to use?

11 replies
LaBellaFlor Posted 2 Feb 2010 , 3:10am
post #2 of 12

The only people who offer "wholesale " pricing are those that have a store front...and I don't think the neccessarily do it all the time. Those that don't, charge their regular price and leave it up to the restaurant to charge what they want to charge.

indydebi Posted 2 Feb 2010 , 3:19am
post #3 of 12

what is the volume?

"wholesale" is not so much determined by who you sell it to, but how much you are selling to them.

"wholesale" usually is a high volume or bulk packed product, enabling the producer to save money on packaging, raw materials, and labor costs.

When I buy frozen desserts from Sysco or GFS, I have to buy a whole case, not just one or two when I need it.

I sold the car dealership at wholesale because they were buying 300 cookies a day, 6 days a week (1800 a week; 7200 a month). This order enabled me to order flour in 50 lb bags at less than 2 cents a cup rather than the 5 lb bags at the grocer at 15 cents a cup. It enabled me to buy eggs in 15 dz boxes at something like 4 cents an egg instead of in the grocery at 15-20 cents an egg. It enabled me to fill the oven and bake 200 cookies in 20 minutes, in one baking cycle, rather than running an empty oven at the same utility cost.

All of this enabled me to give them a wholesale price because I passed my cost savings onto them.

I had a college order 1800 cookies for an event and they wanted them bulk packed, which meant I could pack a huge number in 10 or 12 large boxes, rather than 2 dozen each in 75 boxes. Another raw materials savings.

So my first question is, "Is this wholesale? Or is it just a regular order that happens to be from a restaurant?"

Deb_ Posted 2 Feb 2010 , 3:24am
post #4 of 12

Yup I agree....unless it's a large volume order on a regular basis, they should pay regular retail.

snarkybaker Posted 2 Feb 2010 , 3:29am
post #5 of 12

We set wholesale pricing at accounts that do more than $3000 a month. We give them 30%.

loriemoms Posted 2 Feb 2010 , 1:36pm
post #6 of 12
Quote:
Originally Posted by snarkybaker

We set wholesale pricing at accounts that do more than $3000 a month. We give them 30%.




Thanks, that is what I was looking for. This is for a couple of restaurants who have approached me to make cakes for them on a regular basis and asked me for pricing. I had NO clue! I am sure you write up some kind of contract as well...I also have a caterer who fell in love with my cake and wants to add it as part of her menu of deserts.

Indy: I already buy all my stuff in bulk from a local distributor. (I go through about 200 lbs of sugar a week alone! I can't image doing that with little 10 lbs bags! hahaha) I buy my sugar, flour, 6x, in 50 lbs bags, buy my fillings by the case, buy my eggs by the case, butter in 25 lbs boxes (1 lb cubes), my chocolate by the case, and even found a company that would sell me cinnamon chips by the case (Man, that was HARD to find!) I am currently pricing fondant by the pallet as it is cheaper as well (Where to store it! haha!) I had to run to costco one time to get some sour cream and filled the cart with sour cream. The guy behind me said "You sure making a lot of baked potatoes!" hahaha! So I guess I am already passing on the savings to my customers...

loriemoms Posted 2 Feb 2010 , 1:40pm
post #7 of 12

PS Thanks for defining wholesale for me. This is a whole different world that I never thought I would be getting involved in! Maybe it will get me another oven!

snarkybaker Posted 2 Feb 2010 , 3:15pm
post #8 of 12
Quote:
Originally Posted by loriemoms

Quote:
Originally Posted by snarkybaker

We set wholesale pricing at accounts that do more than $3000 a month. We give them 30%.



Thanks, that is what I was looking for. This is for a couple of restaurants who have approached me to make cakes for them on a regular basis and asked me for pricing. I had NO clue! I am sure you write up some kind of contract as well...I also have a caterer who fell in love with my cake and wants to add it as part of her menu of deserts.

Indy: I already buy all my stuff in bulk from a local distributor. (I go through about 200 lbs of sugar a week alone! I can't image doing that with little 10 lbs bags! hahaha) I buy my sugar, flour, 6x, in 50 lbs bags, buy my fillings by the case, buy my eggs by the case, butter in 25 lbs boxes (1 lb cubes), my chocolate by the case, and even found a company that would sell me cinnamon chips by the case (Man, that was HARD to find!) I am currently pricing fondant by the pallet as it is cheaper as well (Where to store it! haha!) I had to run to costco one time to get some sour cream and filled the cart with sour cream. The guy behind me said "You sure making a lot of baked potatoes!" hahaha! So I guess I am already passing on the savings to my customers...




Most of the time, it doesn't make financial sense to wholesale handmade specialty desserts. The storage for the quantity you need to make to be profitable alone costs more than an average wholesale margin. One of my wholesale clients is a hotel. We have no storage involved since they are 1.5 blocks away, and you know how expensive everything is at hotels.

The other is a gourmet store that has national recognition. We don't make a ton of money selling to them, but it is good for our brand. People come in all the time and say...Oh, I saw you at.....

cakesweetiecake Posted 4 Feb 2010 , 5:30pm
post #9 of 12

Great thread! Very informative!

No-goodLazyBum Posted 5 Feb 2010 , 4:15am
post #10 of 12
Quote:
Originally Posted by indydebi

what is the volume?

"wholesale" is not so much determined by who you sell it to, but how much you are selling to them.

"wholesale" usually is a high volume or bulk packed product, enabling the producer to save money on packaging, raw materials, and labor costs.

When I buy frozen desserts from Sysco or GFS, I have to buy a whole case, not just one or two when I need it.

I sold the car dealership at wholesale because they were buying 300 cookies a day, 6 days a week (1800 a week; 7200 a month). This order enabled me to order flour in 50 lb bags at less than 2 cents a cup rather than the 5 lb bags at the grocer at 15 cents a cup. It enabled me to buy eggs in 15 dz boxes at something like 4 cents an egg instead of in the grocery at 15-20 cents an egg. It enabled me to fill the oven and bake 200 cookies in 20 minutes, in one baking cycle, rather than running an empty oven at the same utility cost.

All of this enabled me to give them a wholesale price because I passed my cost savings onto them.

I had a college order 1800 cookies for an event and they wanted them bulk packed, which meant I could pack a huge number in 10 or 12 large boxes, rather than 2 dozen each in 75 boxes. Another raw materials savings.

So my first question is, "Is this wholesale? Or is it just a regular order that happens to be from a restaurant?"




Great definition! I was completely missing the bus when I asked this same question a while back. Thanks!

Wildeflour Posted 6 Jan 2015 , 12:13pm
post #11 of 12

Can you please let me know how much you were charging for the cookies sold at the car dealer? 

ellavanilla Posted 8 Jan 2015 , 4:50pm
post #12 of 12

this thread is 5 years old. Likely the pricing details are no longer applicable. 

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