I want to expand my business to include some coffee shops, etc that would resell my muffins, scones, and cookies. Usually I assume 3 to 4.5 times my cost to calculate customer price, but I know that I have to charge the coffee shops wholesale prices so they can resell the stuff at a profit. I know a lot of you guys sell to restaurants, coffe shops, etc...How much is your mark-up? 2 times cost? I just want it to be worth the trouble.
Define "wholesale" pricing. This usually entails a large volume order that enables you to give them a discount price ONLY BECAUSE you are able to order your supplies in higher volume at a lower price and you can pass that savings on to the high volume customer.
Just because you are selling to a biz, doesn't automatically mean they get a lower price. The price must be justified.
There is also a Robinson-Patman act, an anti-trust law, which prohibits unfair pricing advantage. If you are sellling the same product in the same volume then you must sell it at the same price to everyone. Otherwise, you are giving unfair price advantage. I became almost an expert on this law when I worked for a wire manufacturer.
No. You are actually charging them a "real" price then deducting your rent. Just making up numbers for an illustration.....
Value of Desserts........$1000
Value of Rent .............$ 500
Amount owed to you....$ 500
This is different than you just charging them $500. There is a real exchange of value for 2 items. You are not selling them for 2 different prices.
You're ok.
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