Business Deal On Cakes

Business By paulineclark Updated 5 Feb 2011 , 7:26am by Annabakescakes

paulineclark Posted 4 Feb 2011 , 9:37pm
post #1 of 10

Hi every one can you help to advise me on this one
Some one i dont know has asked to display my cakes on her high street sweet shop for 20% to her wedding and novelty cakes is this reasonable ?
am grateful for any thoughts on this thanks.

9 replies
ShaunPepe Posted 4 Feb 2011 , 9:48pm
post #2 of 10

Does this shop make wedding and novelty cakes too? 20% of the total price of the cake? That seems like alot of money to me. Unless you can charge 20% more than usual for the cake so that way you can still make the same profit. Not sure about this one.

paulineclark Posted 4 Feb 2011 , 10:02pm
post #3 of 10

no its a sweet shop only ? i thought it was a bit much she wanted 25% i got her down to 20 % but still was wondering what the going rate every where else was thanks

MamaD77 Posted 4 Feb 2011 , 10:39pm
post #4 of 10

Hi Pauline,
I aint too far from you! I'm west of Edinburgh. I have recently been thinking about this very thing for the future for Sweet Mama D's, but was thinking more along the lines of having a couple of dummy cakes on display in a local shop window for a monthly fee, sort of like you would pay the newsagent for an ad in the window. I'm not sure what the standard practice is for this kind of thing, I'm hoping someone else will post an idea or two!
I do however think that the sweet shop lady is having a bit of a laugh, I thought about it, and does that mean that if you sell a wedding cake off the back of your cake in their window, that sold for say, £500? Then she would get £100? IMO that's a bit steep! I dont think that's a very good deal for you!
There must be a better (and cheaper) way to advertise!

Your me to you bears are awesome by the way!

I know there are a couple of cake decorators advertising on gumtree, its always worth a try.

Mama D

cakedoff Posted 4 Feb 2011 , 11:08pm
post #5 of 10

I just have to say...I MOVING TO UK! Not really, but the cottage cake industry is so much easier there...we have SO MANY damn rules!

MamaD77 Posted 4 Feb 2011 , 11:22pm
post #6 of 10

Yep, you wouldn't believe just how easy it is!

I just have to wait until my skills improve enough to justify charging money for my cakes! icon_lol.gif

Wanna do a home swap? icon_wink.gificon_lol.gif

Mama D

Kitagrl Posted 4 Feb 2011 , 11:33pm
post #7 of 10

Are the people ordering through her, or through you?

If through you, then you should pay her a monthly fee for displaying your cakes because not ALL your orders will have been referred through her.

If through her, then she should upcharge...you charge what you want and then she can add whatever she wants on the top to charge her customer. That, I think, is more fair to both of you. That way you get your full worth and she makes a bit of money off of you, too.

paulineclark Posted 4 Feb 2011 , 11:55pm
post #8 of 10

she wants them ordered through her i did think like you i would ask her for what i would like for the wedding cake then she could add on some extra but she was worrired that once the customers knew who i was come to me directly saving themselfs 20% so she has a point there.
thanks pauline

Kitagrl Posted 5 Feb 2011 , 12:21am
post #9 of 10

I think 10% would be much more reasonable since all she's doing is giving you window space. If you sold $2000 worth of cake a month, she would still get $200/month just for "window rental" which to me sounds reasonable. (Sorry for using $$!)

Annabakescakes Posted 5 Feb 2011 , 7:26am
post #10 of 10

I think that 20% is VERY unreasonable. There is no way I would do it. The cake would dress up her windows, and she doesn't have to do anything. And, is that 20% off the profit, of the total price of the cake? I might think do it if it was the profit. I figure $100 cake cost me $25, so I pay myself $60, so I profit $15, and she gets $3. Deal!

Not to mention the fact that if she takes cake orders for you, there is going to be confusion. It is easier to just speak to the person yourself. Less mix-up.

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