How To Charge Restaurants For Cakes

Business By cck Updated 3 Mar 2006 , 9:30pm by cck

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cck Posted 3 Mar 2006 , 2:34am
post #1 of 6

Help! I am new to this forum and new to the baking business. Need advice quick. I have a restaurant who is interested in purchasing my cakes. How much should I charge the cakes? Should I create a package deal?

5 replies
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princessjellybean Posted 3 Mar 2006 , 4:02pm
post #2 of 6

welcome to cc...im of no help but thought i would give you a bump since no one has answered yet.

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jdogga Posted 3 Mar 2006 , 4:04pm
post #3 of 6

I think I would lower the price a little bit if they are giving you a contract to sell your cakes(a big number per month or year or whatever)...if they are just randomly ordering them, I would charge full price!

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twindees Posted 3 Mar 2006 , 4:07pm
post #4 of 6

First of all congrats & welcome to CC. I agree with jdogga but remember they are going to mark up your price to make a profit. so make sure you get your money.



Good Luck

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PSLCakeLady Posted 3 Mar 2006 , 4:14pm
post #5 of 6

I don't know about giving them a "package deal," but first and foremost try to get an idea of what their price point is for their desserts and what's their budget on a cake of the type you are making. What you are doing is selling it to them at a wholesale price and allowing them room for their mark up. There's a couple of ways you can go about it. Calculate your food costs and see what it actually costs you to make the cake. How many 'restaurant-type' servings can you get from a cake? Usually 8 or 16 depending on what their portion size is. They may sell their portions from 3.95 to 7.95 (just an estimate). So if they are selling a portion at 3.95 X 8 portions, that's 31.60. They of course want to make a profit so how much can you sell it to them which will make it profitable for both you and them?

One way is to use your price of your cake less 30%. That's the price you give it to them for and whatever they want to sell the product for is their business. They may make a great profit but that's not your concern. Your concern is making a profit from your end and moving your product.

I hope this makes some sense. Let me know if you have any other questions.

P.S.: Check around and see what some local restaurants are charging for your type of cake on their menu. That may help you some with your price points.

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cck Posted 3 Mar 2006 , 9:30pm
post #6 of 6

Thank you all so very much for the advice. This will be very helpful.

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