Wholesale To Venue

Business By hamie Updated 3 Feb 2012 , 5:49pm by costumeczar

hamie Posted 3 Feb 2012 , 2:03am
post #1 of 7

I am in talks with a local venue & caterer to be the provider of cakes for their events. They will meet with the brides, conduct tastings, and collect all the money. I will take care of the cake and they will cut me a check.

They would like some sort of wholesale pricing. I have never done anything like this before. What kind of discount do you think is appropriate? Whatever I give is profit and I hate to give that up; but the increase in volume would more than make up the loss.

Also, I am a bit uncomfortable never speaking with the bride. When the bride leaves the tasting I have a very good picture in my head what the cake will look like. I know cake. Although the venue has been in business for decades, they don't know cake.

Their tasting policy is a bit different than mine. They take orders. I can imagine 15 different flavored cupcakes every weekend. Generally I offer butter, chocolate and whatever I was already making that weekend. Should I push to change their policy? Or should I adapt.

Of course, we will have a written contract spelling out all of the particulars. I would like some advice from anyone who has done something similar.

6 replies
costumeczar Posted 3 Feb 2012 , 2:18am
post #2 of 7

I'd be careful about this...How much do they want to discount? The venues that I had this kind of arrangement with always let me deal directly with the client. They'd give the client my information and send her to me, and I'd write up a contract the normal way. The payment was an agreed-upon price per serving that the venue and I agreed to, and they cut the check to me directly. The client had paid them as part of her wedding package, then they paid me.

I wouldn't discount too much...I'd find out what they're thinking, but if the profit that you're making is too low it won't be worth your time in the long run. And what happens if they need a cake the week that you're going on vacation? Make sure they address that kind of thing!

jason_kraft Posted 3 Feb 2012 , 2:33am
post #3 of 7

How much is your current hourly wage and profit margin? How much will the venue be charging for brides for your cake vs. your current price?

scp1127 Posted 3 Feb 2012 , 1:43pm
post #4 of 7

Make sure you check with your HD about any wholesale licensing requirements. This is usually a separate license.

costumeczar Posted 3 Feb 2012 , 2:06pm
post #5 of 7
Originally Posted by scp1127

Make sure you check with your HD about any wholesale licensing requirements. This is usually a separate license.

I was thinking the same thing, but I bet the venue isn't really talking about a true wholesale arrangement. My guess is that they just want a big discount...

jason_kraft Posted 3 Feb 2012 , 5:13pm
post #6 of 7

It still may be considered wholesale by the state/county, considering the vendor and the end customer never meet.

costumeczar Posted 3 Feb 2012 , 5:49pm
post #7 of 7

The whole arrangement sounds sneaky on the part of the venue to me.

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