Suppling Cake For A Local Shop To Sell...questions...

Business By DebbyJG Updated 23 Jun 2011 , 5:16pm by splymale

DebbyJG Posted 20 Jun 2011 , 2:58pm
post #1 of 13

I have an appointment today to meet with a local candy boutique (they also do candy birthday parties on site) to potentially be a vendor for them for cake and cupcakes, both for being their "go-to" person for birthday cake referrals for their on site parties, and also for selling ready-to-sell cupcakes that I would keep stocked for them.

My appointment is for this afternoon, so I don't have much time, but I've been trying to research exactly how to go about doing this, and I can't find much. Those of you who provide cake stock for storefronts, do you charge the same price as custom orders, or do you provide them a bulk discount? Also, do you charge for what you deliver for their on-hand stock, or do you charge based on what sells?

I am a licensed bakery, in case that was the first question in anyone's mind. icon_wink.gif

Any experienced advice I could get would be super helpful. THanks!

12 replies
Dayti Posted 20 Jun 2011 , 3:21pm
post #2 of 13

I have agreements with 3 different clients to do this. I charge a discount on my bakery sale price, for them to mark up. So far all of them are happy with this. I don't charge all clients the same (though similar). Depends on their selling price at their place (they have all told me what they are selling at icon_biggrin.gif ) i.e. if they sell at a higher price, I sell to them at a higher price, and we both get more $.
They place orders with me, and pay for their order (I actually invoice them at the end of the month, for payment the following month, but that is pretty standard here). I don't give two hoots if they sell all the goods or if their staff eats it all - that's their problem icon_wink.gif But mostly, once the ordering process has been in place for a while, they will soon see how much sells/doesn't sell and order accordingly.

DebbyJG Posted 20 Jun 2011 , 4:51pm
post #3 of 13

Thank you! That helped a lot. icon_smile.gif

scp1127 Posted 21 Jun 2011 , 2:05am
post #4 of 13

In most areas there are additional requirements and licensing for wholesale. Check with your HD.

dchockeyguy Posted 21 Jun 2011 , 4:05pm
post #5 of 13

In many places, doing this outside of a commercial kitchen is illegal, even if you home kitchen is licensed. YOu really do need to check your regulations.

leah_s Posted 21 Jun 2011 , 4:23pm
post #6 of 13

Ditto. Around here selling to the retail customer is a different license than selling for resale. Doesn't make a lot of sense . . .

DebbyJG Posted 21 Jun 2011 , 5:03pm
post #7 of 13

Thanks. I'll check into it. I know there are lots of places around here that sell to small restaurants and shops, but there are also lots of people around here who are selling licensed characters on their cakes as well. (In other words, just because I'm seeing a lot of people doing it doesn't mean it's legal. And I do things legally, even if it means I lose an order here and there because I won't make SpongeBob.) icon_wink.gif

Dayti Posted 21 Jun 2011 , 5:04pm
post #8 of 13

Doesn't make sense...what part? The having to have a different license, or doing the wholesale thing at all? If you mean the license, I agree, since if you are already inspected/HACCP'd then by all accounts you should be good to go, whoever you are selling to. If you mean it doesn't make sense to have a wholesale agreement, I disagree...I pretty much pay my rent just by doing this with these few clients.

leah_s Posted 21 Jun 2011 , 5:25pm
post #9 of 13

Two different licenses doesn't make sense for the reasons you stated.

Jess155 Posted 21 Jun 2011 , 5:34pm
post #10 of 13

Debby - just wanted to say I love your siggy! icon_smile.gif

DebbyJG Posted 21 Jun 2011 , 5:45pm
post #11 of 13

Thank you! icon_smile.gif And I like yours too. icon_smile.gif

scp1127 Posted 23 Jun 2011 , 3:21am
post #12 of 13

In our area the license is different for several reasons. They want you to understand and comply with the packaging requirements. Unpackaged, which is what most of us sell, is a different classification. Bakery boxes and cardboard boxes are not considered a package. You must know the rules for wholesale packaging. Next, and more important, is labeling. On a packaged item, the weight, ingredients, allergy alert, name and address of bakery, and name of item must be present.

The reason for the licensing requirement is because in the "unpackaged" industry, people are purchasing from the baker directly. They know you and know how to find you. They can ask you personally if they have any questions. On wholesale packaged food, the consumer does not know their baker and the products must give all general information.

splymale Posted 23 Jun 2011 , 5:16pm
post #13 of 13

I'm also in OH and I was told by the gentleman who insprected me that if you have a home bakery license (not cottage) you can sell to restaraunts and stores.

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