So I was recently contacted by a woman I know through a friend who used to have a good truck and is now opening a storefront to sell bubble tea, smoothies, and some good in a great location. She wants me to contract with her and deliver cupcakes to her storefront on a weekly basis to sell there. I am meeting with her next week to discuss it. My question is has anyone done this or do you have any advice on how to approach this? How often do I deliver to keep them fresh? Do I charge her my normal rate of $18-22/doz for cupcakes (some specialty flavors cost more) or do I give her a discount?
Thank you for any input!
You are already on the lower end for pricing so I would not go any lower. I don't know about AZ but in CA we have to have a different license and inspections to sell to second hand vendors so you might want to look into that. It would be up to her to decide how many cupcakes she wants to buy from you and how often. Whatever the terms you'll need some kind of contract.
KY also has a different license for selling to retail. Pastrybaglady is correct - your customer (the retail store) tells you how often to deliver and what flavors to supply. They take all the risk on stales and sales. In culinary school, we were taught that wholesale gets a 10% discount. But I have been getting $3 each/$36 per doz for cupcakes for years.
I also read from a previous poster a good idea...
Offer a discount on the "last" purchase to be sure the contract warrants a discount. In other words, if you *think* it will be 10 dozen a week, and turns into 2 dozen per week, will that price/discount still be fair? So the 1st 1-5 dozen per week is $______, and the 2nd 6-10 dozen would be $________.
It made sense to me when I read it. You offer a discount when you can decrease costs by buying bulk and/ or having a standing order that helps consistently pay overhead.
Be sure you also clarify who "eats" the stales. :) Are you selling to her (her stales, her losses, her risk after delivery), or are you getting shelf space (your product, your losses, your stales)?
As far as price, Leah ^^^ knows it.