An aquaintance of mine owns a deli and in the past, her mother would bake cookies (chocolate chip, oatmeal, sugar, etc.) to sell at the deli. However, her mom is in her 70's and finding it hard to keep up with the increase in demand for cookies "by the dozen" that local businesses are requesting.
Anywho, she has asked me if I would be interested in selling cookies to them "wholesale" and I've never done that before. She explained their cookies sales history and I'm confident I can keep up with demand with NO problem!
I have figured the cost for each type (5 different kinds), but don't know how I should price them for sale to her. I thought about a 50% margin...because each batch yields 2 dozen, so I could sell them per dozen and just ask batch cost....make sense? I don't want to sell them to her too high....does anyone do this and have any advice?
When I did a large order, I asked them what their target price was and then I ran the numbers to see if I could meet their expected price. I was able to offer them a lower price for their volume (100+ doz a week) because the volume allowed me to buy in cost-saving bulk ..... flour in 50-lb bags is less than one cent per cup as compared to buying it in 5lb bags which is over 15 cents a cup.
Yeah, I understand that.....when I had a cookie only business, I bought everything in bulk to increase my profit margin! But, these are little different. I don't think they're anywhere near the 100+ dz/week mark (doesn't mean they won't ever be 
), but I'm still at a loss for what's considered a fair wholesale price per dozen.
For example.....without buying my ingredients in bulk.....my cost per dozen for traditional chocolate chip cookies is just over $2.00, including my time. IYO...is $4.00/dozen too high to ask wholesale?
Great! That helps! I'm going to go to them with my pricing "as is" and if she thinks that's a little high, I'll try to get a commitment out of them in exchange for lower wholesale cost and I'll purchase ingredients in bulk!
Thank you, indydebi....you're my girl!
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