Wholesale Price To Local Upscale Grocery?

Baking By OneCreativeCookie Updated 26 Jan 2011 , 11:29pm by OneCreativeCookie

OneCreativeCookie Posted 20 Jan 2011 , 2:29am
post #1 of 7

Hi all...
I have read some great posts about wholesale/retail pricing, but none seem to satisfy my particular scenario...perhaps someone has/had the same issue?

I would like to sell my cookies (decorated sugar cookies) to a local upscale grocery. I have an established retail price that I am comfortable with. I am thinking that I would like to offer them whatever is coming out of my kitchen that week along with my "signature" cookie (a flower) for some total number of cookies each week. For example, if I'm making hearts for valentines day, they might get one doz hearts, one doz flowers. My hope is that it will be my choice on design and will allow me to tag onto my custom orders.

How in the world do I price them for wholesale? They would be flat/final sale, not on "consignment".

Any thoughts?

6 replies
pattycakesnj Posted 20 Jan 2011 , 2:45am
post #2 of 7

I can't really help with pricing but a word of caution, check with your state and local health department and see if they require a wholesale license. I am a one person by appointment only cake design studio but when I acquired a wholesale account, I had to get a different license from the state and the local health department plus there are all kinds of labeling requirements, ie ingredients, weight etc. That also meant a visit from the state health department (besides my local health department) who lectured on bio terrorism among other things. And of course all this meant more money shelled out by me.

cownsj Posted 20 Jan 2011 , 3:27am
post #3 of 7

Excellent point pattycakesnj. I wouldn't have given that a thought, but now that you have mentioned it, then the OP needs to know that the Dept. of Weights and Measures will periodically weigh the product and if they don't meet the weight on the package, the fines are huge, for each and every single one. They even do that on large commerical, prepacked items (ie Hostess, etc.) And if they are in the store and weigh them, the store will be fined, and they will turn around and sue you.

scp1127 Posted 20 Jan 2011 , 6:41am
post #4 of 7

The good news is that once you complete all of the above wholesale requirements, you are close to FDA approval which is required in interstate and worldwide mailing.

Dreme Posted 20 Jan 2011 , 2:24pm
post #5 of 7
Originally Posted by scp1127

The good news is that once you complete all of the above wholesale requirements, you are close to FDA approval which is required in interstate and worldwide mailing.

How do you go about getting FDA approval? Is this required for a person to ship cookies out of state?

scp1127 Posted 20 Jan 2011 , 2:44pm
post #6 of 7

Dreme, yes it is, but most people don't realize it. My state dept of ag gave me the packet. My local requirements are so strict that I already qualify. I haven't done it yet, but it adds on the registration with the bioterrorism act, labeling you products through the FDA, and having a recall protocol set up. If you are in an area that allows cottage industry, you will have tons of construction, but if you already have a separate kitchen with floor drains, a grease trap, properly vented hoods, a three compartment sink tat can immerse two thirds of your largest pan (yes, mine is nine feet long just to get a half sheet pan properly immersed), proper materials on walls and floors, etc., then it is pretty easy.

When you read the requirements, it also gives the penalties for non-compliance... not good. You can sell over state lines within reason (you live close to a state line) under the fair trade between states act, but any more than that falls under the federal government. I want to ship cookies and brownies to servicemen overseas at a greatly discounted rate and I must finish my FDA approval. I know most people don't realize this, but they will find out real quick if someone gets sick from shipped food and the feds knock on their door.

OneCreativeCookie Posted 26 Jan 2011 , 11:29pm
post #7 of 7

Thanks to everyone for their concern about licensing. I guess I should have said that I have a state license for my home kitchen, an LLC and a professional liability insurance policy. You are right, labeling is strict and if I am the retailer there is one set of requirements and another, slightly stricter, set of requirements for labeling if I wholesale. I would be selling to a local market with only one location and a focus on small local vendors/producers (and they do not ship out of state). I do not presently sell out of state (on the internet or otherwise), but you all have raised some excellent questions if/when I go to that.

Does anyone have any experience with wholesale pricing? I simply don't know if the standard in the grocery industry is a 20% discount off of retail or a 50% discount off of retail... If it's 50% it's not even worth my shopping around to the one or two local groceries icon_wink.gif And, I'd like to be somewhat versed in the topic before I start talking to the store owners/managers.


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