My sister and I have been selling cakes, candies, cc, etc out of our home bakery for years on a not so regular occasion. We want to do this full time, but orders just dont come in when grocery stores are cheaper that what we can do(Yes, the product is cheap as well, but around here- no one cares) Anyway, a woman we went to school with 30 years ago contacted my sister through email saying she was buying a local restaurant and wanted to talk with us about supplying desserts for her. We would LOVE to do it, and want to sound as "in the know" and professional as possible, but have no clue on what to "bring" to a meeting with her ie- prices to charge them, things to ask, etc. I would appreciate anything you all can suggest!
So would you be expected to offer them wholesale pricing?
I was approached by a restaurant nearby to do their dessert cakes but my home baking license doesn't allow me to wholesale my baked goods or sell them to a place where they would be resold.
So before you do anything I'd check with your licensing guidelines.
You might be better off just working for the restaurant on a contract basis, using their facilities and equipment. That way you wouldn't have to worry about licensing and inspecting your home kitchen.
Thank you! I will definitely check into that and see if that is a possibilty and check the licensing guidelines. Thank you thank you thankyou!!!!!!!!
Your very welcome...good luck to you I hope it works out in your favor!
BTW I just noticed you live in Lancaster, PA....I LOVE it there!
Awww, we love it here as well, Grew up here and did moved everywhere across the country when we turned 18 to "get outta Here" But after my highschool sweetheart and i got married and had kids, we ended up right back where we started! Love it!
Hey...I'm not far from Lancaster!! Yes, Lancaster is awesome. Do you see alot of Amish? They are fascinating!
I live in Schuylkill County, we're practically neighbors!
Yes, tons of Amish LOL . Well, hello neighbor!
My in-laws live about 30 miles from Lancaster in a town called Jonestown (it's near Lebanon), so we've visited the Amish quite a few times.
One of my favorite places is the Kitchen Kettle Village in Intercourse....that name always makes me giggle. lol
We love all of the beautiful farms there, it's a beautiful place.
I think my son just camped in Jonestown(Boy scout camp Camp Bashore)!
After living in california, NY, Nashville and Chicago, I will never move anywhere else...ok, maybe Vermont- but only there- LOL
PA does have a cottage law. You can look into the rules and see if selling wholesale is allowed. If so, find out what types of items the owner wants (cakes, pies, muffins, etc.) and make a sample box. Bring a price list and talk about delivery days, starting quantity, product assortment, etc.
For pricing, figure out ingredient and product costs. The baking industry uses a standard mark-up. For wholesale pricing multiply your product cost three or four times (four is preferable, of course). This method has been used successfully for many years and simplifies pricing; and it includes a percentage to cover all overhead, plus misc business costs.
Thank you so much!!! We met with the women opening the restaurant today and took a sample tray and they said they loved them. Unfortunately or fortunately they are new to owning their own restaurant as well and said they were going to talk about pricing, etc and get back to us. We left thinking they wanted us to be their dessert supplier, but not sure. Of course I would think we need to have a contract drawn up if we move forward. Do we write it up or have them write it?
This is way more difficult than I was thinking originally. I'm not gonna get my hopes up on any of it.
Have no fear, that feeling will eventually pass. Anytime we do something new it can seem overwhelming.
A contract is not used in this type of business transaction. For small businesses, wholesale accounts come and go. (But I strongly suggest you request COD for all orders. No signed contract, just request it.)
Call them in a few days and ask if they have any questions. You can also seek other wholesale accounts, don't stop here. Good luck!