Need Help With Kitchen Agreement...
Decorating By feverfixer Updated 26 Mar 2007 , 2:13pm by Brendansmum
I have the opportunity to work with a local girly tea room, making cakes for their specialty parties. In exchange, I will have use of the kitchen and be able to become licensed. They do parties only 2-3 x month. They may be interested in putting my cupcakes an the menu too.
I am working on some dummies and will give her samples of my cakes, but I need someone with some experience to help with how to set up the arrangement. Any one out there doing this?
I was thinking about giving her theme cakes to match her parties that are easy and quick to do, eg purse cake or stand-up Barbie, with an option for a custom cake at a higher price if the client wants one. The profit for her on these would be high, as I would charge only costs. Any outside work of my own, but using her facilities would give her 10%. The other option may be to rent the kitchen on a hourly basis. Any suggestions?
I may know how to make cakes, but I am not a good business person!
Help!
Diane.
I would want to know what the 10% you pay them is going towards. Will they help to advertise your services, for example, or are you simply paying them in exchange for using their kitchen facilities? As for the cakes you're providing them at cost, are they getting a great deal as it would cost them more than that to pay an hourly rate to do the work, or would they just be breaking even?
Just some questions I would want answered...
I was wondering as well why you are supplying them their cakes at cost but still paying 10% of your own personal business to cover using the kitchen. Isn't that what their discount its for? I would just give them a discounted price off the item they ordered since you are using her kitchen. That's what I used to do when I was renting. I found it very hard to work out an agreement with the woman I rented from. She felt like she wasn't gaining anything and I felt like I was getting ripped off, needless to say we parted ways! Good luck, I really hope something works out for you.
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