Need Advice!

Business By teddy0826 Updated 18 Apr 2012 , 6:55pm by teddy0826

teddy0826 Posted 18 Apr 2012 , 1:59pm
post #1 of 10

Hi Everyone,
I work in a bakery part time as a cake decorator. I also have my own kitchen licensed as well. I love making sugar cookies with royal icing (costum made cookies) I would like to do the work in my kitchen but sell out of her shop. I work in the city where I would get more money for them. I know the costs of my costs, labor, etc.. what kind of commission would be fair?

9 replies
jgifford Posted 18 Apr 2012 , 2:25pm
post #2 of 10

This is something you need to work out with the bakery owner, but I would go with a percentage vs. a flat fee.

teddy0826 Posted 18 Apr 2012 , 2:27pm
post #3 of 10

That's what I would like to do is a percentage of each sale I would do. What is a good percentage for both of us?

jason_kraft Posted 18 Apr 2012 , 2:42pm
post #4 of 10

What is your cost for making the cookies (including labor, ingredients, and overhead on a per-order basis), and what is the market price for the cookies in your area?

jgifford Posted 18 Apr 2012 , 2:43pm
post #5 of 10

That's the part you need to work out with her - - something that's fair for both. You're going to have to do a little homework on this one. Get with her and decide quantities and prices and then crunch the numbers.

akaivyleaf Posted 18 Apr 2012 , 5:59pm
post #6 of 10

Why isn't this seen as conflict of interest? At minimum this is blurring the lines in the business world.

Again, speaking as a business owner in something other than a bakery business, I would be hesitant and probably suspicious in making such a commissioned agreement, regardless of the % agreed upon. Not saying that you're doing anything wrong, it just seems...rather...strange to have an employee doing private baking to sell in a bakery.

jgifford Posted 18 Apr 2012 , 6:02pm
post #7 of 10

If the bakery doesn't offer cookies and she's making them on her own time in her own kitchen, she's basically a wholesaler. I don't see a conflict here.

akaivyleaf Posted 18 Apr 2012 , 6:05pm
post #8 of 10

True I can agree, if the product wasn't produced by the bakery. But in that case, I would want to receive a wholesale price versus a commissioned price.

A wholesaler, sells in bulk, and that which doesn't sell is a loss to the retailer. A commissioned sale is a percentage and that which doesn't sell is a loss to the owner of the property, in this case the OP.

This might change the way the goods are priced.

jgifford Posted 18 Apr 2012 , 6:08pm
post #9 of 10

I see your point - - all the risk is on the OP. This would be something to consider.

teddy0826 Posted 18 Apr 2012 , 6:55pm
post #10 of 10

I would be making the cookies upon request of the customer not to sit in a case to be sold. She does cookies but puts buttercream on them. They taste good but you can't make them as nice as you would with royal icing and she doesn't do it that way. I only work Thurs, friday, and Sat. so I thought it would give me a little extra income. I just wanted some kind of idea before I talked to her about it. I just wanted to see if it would be worth the wild. Thanks everyone for your advice.

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