What Would You Charge For This Corporate Account?

Business By forheavenscake Updated 18 Jun 2011 , 11:40pm by forheavenscake

forheavenscake Posted 17 Jun 2011 , 5:06pm
post #1 of 14

So my AMAZING husband has landed me an account with his work. They do a cake every month for all the birthday's in that given month. Up until now, they've had one of their employees go get cups, plates, forks, ice cream, cake etc and bring it back.

Now they're bringing me in and want it to be all inclusive. They want me to bring all the paper products, ice cream and my cake. I wont' up charge for the paper products, but what would you charge to do this for them? I live about 20 minutes from their office, so it would be a 40 minute drive round trip. We still have to work out a lot of the details but I'm new to all this and just curious to see what you guys would charge for this type of service?

Thanks for the opinions in advance!!

13 replies
jason_kraft Posted 17 Jun 2011 , 5:11pm
post #2 of 14

I would charge the same as any other delivery: cost of ingredients (including the paper products) + cost of labor + per-order overhead cost (make sure you have liability insurance!) + 20-30% profit margin + delivery charge (we charge $1/minute round trip).

forheavenscake Posted 17 Jun 2011 , 5:15pm
post #3 of 14

Thank you Jason! I am in FL, so this is obviously all contingent on the governor signing the Cottage Food Law. I have not done "official" deliveries, so was not sure what to charge for something like that.

mombabytiger Posted 18 Jun 2011 , 12:00am
post #4 of 14

Congratulations! That sounds like fun! Will you be able to get creative and design a cake to suit the month?

kakeladi Posted 18 Jun 2011 , 12:35am
post #5 of 14

Why won't you charge them for the paper products?? You don't have to make a profit on it, but why should you shoulder the cost? So far they have been paying for them so why not for you?

jason_kraft Posted 18 Jun 2011 , 2:25am
post #6 of 14
Quote:
Originally Posted by kakeladi

Why won't you charge them for the paper products?? You don't have to make a profit on it, but why should you shoulder the cost? So far they have been paying for them so why not for you?



OP will be charging for the paper products (passing along the actual cost to the customer), just not upcharging (charging the cost + a certain percentage for profit).

LindaF144a Posted 18 Jun 2011 , 3:35pm
post #7 of 14

How are they paying for it? If it is on corporate credit card there is a higher percentage processing fee. Keep that in mind also.

forheavenscake Posted 18 Jun 2011 , 3:48pm
post #8 of 14

Kakeladi - I will be charging them for the paper products, just not adding any extra fee to them. =)

Linda I believe they will be writing me a check and not using a corporate credit card.

mombabytiger - I have not started discussing details with his boss yet, but I believe I will have free reign to do what I please. All depends on what price range they're wanting to stay in. . but either way I will be able to make it more personal than what they've been buying. I'm SUPER excited!! Should be tons of fun and could potentially bring me a lot more business as well!!

YAY!

madcobbler Posted 18 Jun 2011 , 3:56pm
post #9 of 14

I would charge your normal rate, plus delivery(establish a set delivery fee for orders within a 10 to 15 mile radius. Charge extra for each mile beyond that for round trip delivery.), you should charge extra on paper products and ice cream because you have to spend your time and gas shopping for them, and if you're expected to cut and serve the cake you should charge for that service as well. Don't feel you have to discount yourself because it's an account for your husband's work. You are providing them a valuable service and should be compensated.

forheavenscake Posted 18 Jun 2011 , 5:12pm
post #10 of 14

Madcobbler - I had not thought of that! Very good point. . .hmmm, will have to put some more thought into this. I am definitely not discounting because it's my husband's work .. .now my husband on the other hand. He is being the softy. LOL He is normally my go getter and they pay for what they get type person, but he's been very lovey dovey concerning his work and I've had to remind him MANY times that we can't treat them any different than any other client. LOL

itsacake Posted 18 Jun 2011 , 6:31pm
post #11 of 14

Where I am, if you sell a cake and deliver it-- even if you set it up, it is not taxable, but if you deliver it, provide plates and cups, cut it, serve it, refill cookie platters, or the like, it becomes catering and is taxable and you need a tax license from the state board of equalization. Just one more thing to check where you are. At least it doesn't cost anything to get the license here.

forheavenscake Posted 18 Jun 2011 , 7:06pm
post #12 of 14

I will not be serving anything. Just delivering the products and then leaving. =)

Beansss Posted 18 Jun 2011 , 11:12pm
post #13 of 14
Quote:
Originally Posted by slparker

So my AMAZING husband has landed me an account with his work. They do a cake every month for all the birthday's in that given month. Up until now, they've had one of their employees go get cups, plates, forks, ice cream, cake etc and bring it back.

Now they're bringing me in and want it to be all inclusive. They want me to bring all the paper products, ice cream and my cake. I wont' up charge for the paper products, but what would you charge to do this for them? I live about 20 minutes from their office, so it would be a 40 minute drive round trip. We still have to work out a lot of the details but I'm new to all this and just curious to see what you guys would charge for this type of service?

Thanks for the opinions in advance!!




Hmm, don't know what kind of environment your hubby works in, but would it be possible to just send him with everything when he leaves for work? Would save you time and gas. I sell boxes of cookies to the sales reps in my dh's office and he brings them in for me. He does have a more laid back work atmosphere and is the boss though...

forheavenscake Posted 18 Jun 2011 , 11:40pm
post #14 of 14

It's a pretty laid back environment but I think they prefer I bring everything in at once. My husband gets to work at 6:30 am so the ice cream would go in the freezer and everything would still have to be pulled out and set up eventually. PLUS.. I'm very nervous about my cakes. . LOL If he were to ever "hurt" one I would kill him. . at least if I do it I can't be mad at anyone buy myself! LOL!!!

But if they have budget concerns and don't want to pay the delivery fee etc. . then it could be a valid option! Maybe still charge a smaller fee for my running around, but not the delivery because he would be traveling that route anyway. Good idea Beansss!

Quote by @%username% on %date%

%body%